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S FERGUSON 

eneral, USAF 

Director, MOL Program 

JUL 6 1967 

41101111111Mtia 

MEMORANDUM FOR THE SECRETARY OF THE AIR FORCE 

SUBJECT: Manned Orbiting Laboratory Monthly Status Report 

The attached Status Report on the Manned Orbiting 

Laboratory (MOL) Program covers activities through June 30, ",1 

1967 and is submitted in accordance with the June 13, 1967 1 3 

memorandum from the Office of the Secretary. 

1 Atch 

a/s 

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PROBLEMS 

None. 

II. CHANGE PAST MONTH 

A. MOL Program Contracts 

On June 28, the Air Force executed a $27.6 million supplemental agreement to the existing FPIF Titan III contract with Aerojet 

General Corporation for Engineering Development of the Titan IIIM 

liquid engines. 

On June 23, the Air Force awarded a FPIF DORIAN contract, 

with a target price of approximately $13 million, to Douglas for 

black Engineering Development Phase effort. With this action approximately $688 million has been definitized with Douglas out of an 

estimated total Douglas program of $892.7 million. 

On June 23, the Air Force awarded a CPIF DORIAN contract, 

with a target price of approximately $60 million, to General Electric 

for black Engineering Development Phase effort. With this action 

approximately $170 million has been definitized with G.E. out of an 

estimated total G.E. program of $324.6 million. 

B. MOL Executive Council Management Meeting 

The MOL Executive Council, an executive-level advisory body 

made up of senior Air Force and industry MOL managers, met at 9:30 A.M. 

on June 7, 1967, at Hq AFSC, Andrews Air Force Base. The agenda included a general overall program briefing and discussions of Air Force 

management plans, budget and funding problems, safety, and MOL industrial 

priorities. 

C. Update of Program Plan 

A major revision and update of the MOL Program Plan has 

been completed. The document has been forwarded to Dr. Flax for 

review. 

D. DORIAN Status Briefing for Dr. Hornig 

On June 6, a 12-hour MOL status briefing was given to Dr. 

Hornig and several members of his staff. While the briefing was 

generally well received, Dr. Hornig expressed surprise that the MOL 

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Readout System had been deferred. The possibility of restoring 

Readout System Hardware to the baseline program is being investigated 

by the Systems Office. 

E. Management Realignment 

The MOL management structure for the conduct of the 

Engineering Development Phase of the MOL Program has been realigned 

as a result of re-definition of responsibilities at the conclusion 

of the Contract Definition Phase (Phase I). Effective July 1, 1967, 

the Director, MOL will become responsible to the Secretary of the 

Air Force/Director, National Reconnaissance Office (DNRO) for the 

development, acquisition and test of the total MOL System in the 

approved baseline program, including the DORIAN payload. To accommodate the realignment of procurement functions, Major General G. F. Keeling, 

Deputy Chief of Staff, Procurement and Production, Headquarters Air 

Force Systems Command has been assigned additional duties as Assistant 

Director, MOL (Procurement), and his authorities broadened to encompass 

covert DORIAN contracting. A DORIAN contracting function will be 

established within the MOL Systems Office in Los Angeles. 

In order to insure the proper balance and utilization of 

critical optical contractor resources which must be applied to both 

the MOL and other elements of the National Reconnaissance Program, the 

Director, SAFSP, will maintain surveillance for the DNRO over the 

utilization of optical industrial resources jointly used by MOL and SAFSP. 

These and other details of the re-aligned management structure 

were briefed to the MOL Policy Committee on June 1, 1967. 

F. General Electric Plant Cognizance 

On June 13, 1967, the Assistant Secretary of Defense 

(Installations and Logistics), transferred plant cognizance for the 

General Electric Company Missile and Space Division facilities at 

King of Prussia, Valley Forge, Radnor, and Philadelphia, Pennsylvania, 

from the Defense Supply Agency to the Air Force. 

G. MOL Astronaut Announcement 

Public announcement of the selection of four new MOL Astronauts 

was made at a low-key, introductory press conference in Los Angeles on 

Friday, June 30, at 11:00 A.M. PDT. Major Robert Hermann of the MOL 

Program Office conducted the conference. 

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H. MOL Policy Committee Meeting 

The MOL Policy Committee met at 2:30 P.M. on Thursday, 

June 1. General Stewart briefed the Committee on MOL progress and 

plans, and reviewed the MOL management realignment which has since 

been effected. 

III. CURRENT STATUS 

A. Funds 

The approval and distribution of the Aerojet General 

supplemental agreement and the DORIAN contracts for Douglas and General 

Electric enabled the program to obligate the FY 1967 funds committed 

to these contracts. Of the $228,446,000 FY 1967 funds available to 

the program, less than $100,000 will be unobligated and carried over 

into FY 1968. 

In the FY 1968 apportionment, $120,000,000 was released 

to the Air Force for the MOL Program. Initial release of $100,400,000 

to the MOL Systems Office was made July 1, and the remaining 

$19,600,000 is retained by the Director, MOL. 

B. Congressional 

On June 23, Mr. William Newman, Director of the Defense 

Division, General Accounting Office, was briefed on the MOL Program 

at the DORIAN level. Also present was Mr. Handley of the Defense 

Contract Audit Agency (DCAA). Mr. Newman indicated his intent to 

discuss with Mr. W. B. Petty, the Director of DCAA, the possibility 

of delegating the review of MOL Black contracts to the DCAA. This 

approach, if implemented, would avoid some potential security problems 

with the GAO. 

IV. FORECAST FOR FUTURE 

A. MOL Astronauts Briefing to DDR&E and the Vice President 

Major Lachlan MacLeay will brief Dr. Foster during July 

on the role of the flight crew in MOL orbital operations. A condensed 

version of the same briefing will be prepared for presentation to 

the Vice President in connection with his informal visit to the 

National Photographic Interpretation Center tentatively scheduled for 

July 25th. Major MacLeay and other MOL astronauts will be at NPIC on 

July 25, participating in the indoctrination program conducted by 

the Center. 

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B. Secretary of Defense Visit to MOL Contractors 

The date for Secretary McNamara's visit to General Electric 

and Eastman Kodak will be established subsequent to Dr. Foster's 

visit on July 18, 1967. Dr. Foster's visit will serve as a dress 

rehearsal for the presentations, which are being coordinated by the 

MOL Program Office. 

C. MOL Program Review Council Meeting 

The monthly MOL Program Review Council Meeting (which 

replaces the monthly MOL Management Meeting) for July, 1967, will be 

held in the Pentagon on July 27. The agenda will be established about 

July 14. 

V. DUE DATE FOR NEXT PROGRESS REPORT 

The next monthly MOL Progress Report will be submitted August 7, 

1967. 

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