OFFICE OF THE SECRETARY 

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DEPARTMENT OF THE AIR FORCE 

WASHINGTON 20330 

hie via MAN 

Com! 

, 

December 23, 1969 

410,0111111111111 ,.__ 

MEMORANDUM FOR DR. SEAMANS 

DR. MCLUCASA4— 

SUBJECT: Manned Orbiting Laboratory (MOL) Program 

Close-Out Status 

Since the announcement of termination of the MOL Program 

some six months ago, very substantial progress has been 

made toward the settlement of the MOL Program contracts, the 

reduction and reassignment of military and civilian personnel, 

and the disposition of useful and usable program hardware 

and technology. This report reviews our past actions and 

current status, and recommends actions for the total cessation 

of MOL activities. 

In his briefing to Dr. McLucas on July 18, 1969 General 

Bleymaier noted that the terminated contractors were asking 

for a total of $137.4M in settlement costs. This figure has 

now been reduced to $128M, and is expected to be reduced 

further. Therefore, the $125M FY 70 appropriation for MOL is 

expected to satisfy all the government's MOL Program obligations, 

although we may reauire the return of some portion of the 

transferred to for NRO use. The most recent reports 

from the Termination Contracting Officers at each of the MOL 

contractors reflects the following distribution of financial 

requirements. 

EC 

W 

vt 

a0 

cc 

McDonnell Douglas (Huntington Beach) 

McDonnell Douglas (St. Louis) 

General Electric (Valley Forge) 

Eastman Kodak (Rochester) 

Martin Marietta (Denver) 

Aerojet General (Sacramento) 

UTC (Sunnyvale) 

AC Electronics Division (Milwaukee) 

All Other 

Total 

Estimate* 

June 10 

Estimate* 

Sept 30 

$ 48.7M 

20.2 

27.6 

23.0 

6.9 

1.6 

7.2 

1.2 

1.0 

$ 43.3M 

20.2 

27.4 

19.1 

6.9 

2.0 

9.6 

.1 

(.7) 

$137.4M $127.9M 

*Includes special termination costs. 

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RELEASE 1 JULY 2015 -SECRETAt the time of termination there were a total of 192 

military and 100 civilians assigned to the East and West Coast 

MOL activities. By November 30 these numbers had been reduced 

to 10 military and 16 civilians. I will outline my recommendations for the phase out of these people and activities 

later in this correspondence. 

The disposition of MOL hardware and technology is underway in accordance with the recommendations of the Ad Hoc Group 

on MOL Residuals. These were approved by you on September 29, 

1969 and are described in Attachments 1 and 2. The only 

change to these actions is that the Mission Development Simulator disposition is being deferred until February 1, 1970 

pending completion of a NASA sponsored study of the possible 

utilization and application of the MOL Acquisition and Tracking Scope hardware and technology. 

Program documentation and correspondence is being screened 

by both the East and West Coast offices. Documentation and 

correspondence considered significant for reference and 

historical purposes is being retained and retired. Arrangements have been made for BYEMAN storage in the Pentagon and 

at SAFSP in Los Angeles. 

In my view, we are moving towards the final MOL termination phase as rapidly as efficiency and legal requirements 

permit and, therefore, I suggest the following plan. 

My MOL Program Office in the Pentagon should be formally 

closed out on February 15, 1970. The Office now consists of 

three Officers, one Airman and two Civilian secretaries. 

One of these Officers is retiring and will go on terminal 

leave on December 18, 1969; the remaining military personnel 

have already been identified against USAF/AFSC personnel 

requirements. The availability of the secretaries will be 

reported to OSAF civilian personnel for reassignment to 

positions commensurate with their skills, and so as to cause 

them a minimum of personal inconvenience. 

Simultaneous with the close-out of the Program Office, 

I recommend that Brigadier General Lew Allen, SAFSS, be 

designated as the responsible point of contact for residual 

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MOL activities. He will have available to him the services 

of Lt Colonel Robert Hermann, SAFOIPIA, and Lt Colonel 

Norbert Walecka, SAFFM. Both Officers were previously 

assigned to the MOL Program Office and are knowledgeable and 

outstandingly capable of handling those MOL public information/ 

Congressional and financial matters which may occur. In 

addition, many other Officers formerly assigned to the MOL 

Program and Systems Offices will be available in the Washington 

area for quite some time in the future. This arrangement has 

been discussed with General Allen who concurs. 

I recommend also that the Systems Office in Los Angeles 

be scheduled for close-out on June 30, 1970. The military 

and civilian personnel remaining in the Systems Office are 

now in the process of completing their administrative tasks, 

and by March 31 administrative activities will be essentially 

complete; however, significant contractual and financial 

actions will continue for approximately the next 18 months 

until final contractual settlements are completed. By June 30, 

1970, Systems Office personnel strength will be reduced to 

10 people. The sustaining effort required until final settlement of the contracts will require the support of 6 to 8 

procurement specialists. These individuals can be assigned to 

the SAMSO procurement activity with part of their time devoted 

to non-MOL duties as the situation permits. Following the 

close of the MOL Washington Program Office on February 15 

General Higgins, AFSC, DCS/Procurement and Production will 

manage the contractual and fiscal details of the final termination activities supported by the specialists on the West 

Coast. These West Coast personnel can be released and 

reassigned to new duties in the subsequent 18 months as 

requirements permit. Every possible effort will be made to 

protect these people to insure that they are fully utilized 

and that they are given acceptable job opportunities at the 

completion of their MOL tasks. 

By these arrangements, I have provided for the senior 

and most experienced people to be available to finalize the 

MOL contractual and financial settlement details. It is my 

intention, however, to re-examine this plan in the MarchApril time period to be sure that the close-out of the 

Systems Office on June 30 will not, in any way, delay or 

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adversely affect termination settlement actions. If our 

termination settlement status is unsure, or if problems not 

now apparent should occur, then I will continue the activities 

of the Systems Office to some later date. 

Attachment 3 will accomplish these actions and has been 

prepared for your signature. 

To summarize briefly. We have made, and continue to 

make, satisfactory progress toward the total close-out of 

the MOL Program. The $125.OM FY 70 NOA is expected to cover 

all contract settlement costs. Administrative actions, including retirement and storage of important program documentation, including BYEMAN material, are almost complete. 

Program personnel have been reduced from 292 people at the 

time of termination to a current level of 26 people, and 

will be reduced to 14 by January 1, 1970, and to 6 or 8 after 

June 30, 1970. No outstanding actions requiring an MOL 

office staff will remain after that date. 

This report and its recommendations are for your 

review and comment. Should you desire to discuss any of 

the termination particulars in further detail, I or Colonel 

Ralph J. Ford who is my Assistant for MOL, at extension 50961 

in the Pentagon, will meet with you at your convenience. 

s_ecj--1r2 

JAMES FERGUSON 

General, USAF 

Director, MOL Program 

3 Atch 

a/s 

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SAFSL BYE 68346-69 
RE.RVEZ) COil'-'1CA MP; CE.NTE:: 

NR ) QPPRO\tEP_FP3. 

1 RE.LEASE 1 jUOL10:1.5 MGEFO ; 

• 

SC- CUFOTI CLAL:i FIG A , is,S1 

UNCLASSIFIED EFTO 

DATE TiUg' CROUP 

ES 00 SINGL E 

TYPE 0 1 I LI 2 2 1.7cT ES 

PRECEDENCE 

ACTION PRIORITY 

;NFO 

FROM: OSAF 

TO: SAMSO LOS ANGELES CALIF 

UNCLASSIFIED EFTO SAFSL 

For General Bleymaier, Info: Mr. Rutter, 

Mr. Cohen from Colonel Ford. Subject: 

Disposition of MOL Residuals. This message 

in six parts. 

Part I. Confirming. our September 30 telecon, 

the Ad Hoc Committee recommendations for the 

disposition of MOL residuals were approved 

by Dr. Seamans on September 29. A summary of 

the committee recommendations and the approved 

disposition action follows. 

Part II. 

1. The Corz_f_tcee opmmendation that the 

E...1-; • 

1969 

Feeding System contract be transferred to NASA 

TyrIED NAME AND TiTL E 

/ 

A 

.1: Bertram Kemp 

Lt Colonel, USAF':----- 

SzCiaRt.TY CLAIFLCATION 

L

50961 

pi-iGN= 

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A 1. y, 0 '4"•;,,,..., t.:,,,,ifi, N -.., k, t ; '4,,----1_7L.7- 

RALPIU.:3". FORD, - Colonel, USAF -. 

ASsiataritfor MOL Program 

• 
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Lt Col Kemp 

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71 

has been approved. The recommendation that the sample 

pressure suits and support equipment be transferred 

to NASA has also been approved. 

2. The Committee recommendation that Gemini 

AGE be retvuned to NASA has been approved. 

3. The transfer of the waste management components 

and technology, and the oxygen sensor compOnents to 

NASA has been approved.. 

Part III. The items recommended for special 

consideration and further study were evaluated, by 

interested DOD/NASA activities. The resulting 

recommendations, all of which have been approved, 

are as follows: 

1. One set of the CAGE Equipment, located at 

•Martin, Denver including two Sigma 7 computers and 

associated software has been approved for transfer 

to the Air Force Western Test Range. Relocation and . 

installation costg are to be borne by AFWTR. The 

AFWTR contact is: Mr. R4,-,hard Sanders, WTNIS, Air 

Force Western Test Vandenberg AFB, Calif. 

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2. The Laboratory Module Simulator System at 

MDAC, Huntington Beach, including the IBM 360/65 and 

associated hardware/software has been approved for . 

transfer to NASA without reimbursement. All subsequent 

costs for the system are to be borne by NASA. The NASA 

contact is: Mr. Stan Faber, Code CF33, Manned Spacecraft Center, Houston, Texas, telphon.e (713) EU 3-3411. 

3. One set of the CITE equipment (Standard CITE 

#400A) with its associated SDS 9300 has been approved 

for transfer to the Air Force Office of Scientific 

Research (AFOSR). Relocation and subsequent costs 

will be borne by the receiving organization. AFOSR 

contact is Capt Richard L. Rose, AFOSR (SRKB), 1400 

Wilson Blvd., Arlington, Va. 22209, telephone OX 4-4942. 

The ADPE, associated with items 1, .2 and 3 above, 

will be reported via letter to Hq USAF (AFADAE) Attn: 

• 

Mr. Fruchter for inventory reporting Purposes 

report will contain: 

a. 1 Nomenclature description of item; 

: I

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b. . acquisition dollar value; 

c. to whom shipped; and 

d. date of transfer. 

4. The Mission Simulator at General Electric, 

including the 360/44, is to be retained in a hold status 

pending results of a I1Istudforpossible use. 

Results of the study should be available ole 1 December 

In reference to the 930/2200 this computer should be retained 

1969. in a hold status if required for the mission simulator. 

5. The remaining ADPE is to be reported in 

accordance with Section 24, Part 2 of the ASPR. The 

ADPE which remains and is to be reported is as follows: 

a. Four SDS 9300 located at Huntington Beach 

to have been used as part of the ASTEG; 

• b. -0-ne SDS 9300 located at 

to have been used with the secondCITE; 

c. One SDS 930/2200 located at Valley Forge 

to have been used with the Mission Simulator; 

d. Two I!_o_17,-;Jell 24's and one Honeywell 324 

1 located at St. 1_cuLs to have been used with the Gemini EJ 

1 

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Simulator; 

e. Two SDS Sigma 7's located at Martin, Denver 

to have been used with CAGE. 

f. 4 pi. IBM Computers 

Part IV So as to protect the DOD interest and ownership of equipment, all equipment transfer documentstp 

NASA should be annotated so as to read "When this 

system is no longer utilized by NASA, the ADPE will 

be reported back to DOD for redistribution' 

All other equipment is to be reported in 

accordance with the requirements of ASPR. 

Part V. The recommendations regarding disposition 

of the fuel cell hardware, attitude control engines, 

AAP experiments equipment and mass measuring device 

have all be approved. However, with respect to any of 

these items if your investigations and evaluations 

have established at you feel is a priority application, 

el free to exercise your best judgement with regard 

:o their disposition. 

Part VI. The SO s'Lould proceed with all actionsTOR/TOD NO. OF 

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necessary to implement and complete the aforementioned 

recommended actions. My office is ready to assist 

in any way you desire. 

J 

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OFFICE OF THE SECRETARY 

DEPARTMENT OF THE AIR FORCE 

WASHINGTON 2*330 

JAN 8 1970 

MEMORANDUM FOR ALL OSAF OFFICES 

AFCCS 

SUBJECT: Manned Orbiting Laboratory (MOL) Program 

Effective February 15, 1970, the functions and activities 

of the Manned Orbiting Laboratory (MOL) Program Office, 

located in the Pentagon as part of the Office of the Secretary 

of the Air Force are terminated. The functions and activities 

of the MOL Systems Office located at the Space and Missile 

Systems Organization, Los Angeles Air Force Station, are to 

be terminated effective June 30, 1970. 

Such residual MOL contractual matters as may require 

attention should be referred to the Air Force Systems Command 

DCS/Procurement and Production. All other MOL matters 

should be referred to the Secretary of the Air Force, Office 

of Space Systems, SAFSS for disposition. 

This memorandum supersedes and rescinds SAF Memorandum 

for the Chief of Staff dated January 19, 1965 and SAF Order 

Number 117.4, dated September 1, 1966, subject "Director 

of the Manned Orbiting Laboratory (MOL) Program."