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Copy Sof 4 copies 

SAP-SL 21224-66 

,EXCLUDED FROM AUTMATIC REGRADING; 

DO?) DIR. 5200.10 nnEs YOT.OPLY 

NRO APPROVED FOR 

* 'z-,41RELEASE 1 JULY 2015 

aff.le via 

Prtro! S',!sis.orn' • - 

SEP 7 1966 

MEMORANDUM FOR THESECRE2ARr OF THE AIR FORCE 

SUBJECT: Engineering Development Phase of the MOL Prwmpa 

REFERENCE: Secretary of the Air Force Memorandum for the 

Director, MOL, dated August 20, 1966,. Subject: 

Authorization to Proceed with the Engineering 

Development Phase of the MOL Program 

The purpose or this correspondence is to inform you of the 

actions I have taken and intend to take to implement the direction contained in the referenced Secretary of the Air Force 

memorandum. 

I have dispatched to General Berg the directive attached as 

TAB A. In summary, the Deputy Director has been instructed to: 

(1) Continue negotiations with major associate contractors, conclude these negotiations without delay, and forward as soon as 

possible the contract costs and fiscal year fund requirements 

agreed upon with the contractors; (2) take contractual actions 

prior to full-scale EDP approval as necessary to protect pro 

gram lead times and the flight schedule, within the constraints 

specified in your instructions; and (3) review program plans 

and schedules to isolate and identify items which can be deferred 

.without adverse schedule impact on the first manned flight in 

order teminimize FY 1967 funds requirements. 

The specific course of action contemplated with respect to 

contractual activity is the following: Pre-Contract Cost Letters 

of the format appended as TAB B have been executed to cover 

Douglas, McDonnell, and General Electric for the month of September. 

These agreements recognize contractors' expenses incurred during 

September in contemplation of coverage of this effort in definitive 

contracts. Costs to be incurred under this arrangement will be 

limited to specific dollar amounts not exceeding the SPO estimates 

of expenditures for Septedber. These cost limitations are 0.0 

million for Douglas, $1.789 million for McDonnell and $2.0 million 

for General Electric. In order to minimize the period of time the 

contractors will be required to finance the above effort, it is 

planned to execute amendments to the existing Phase IC contracts 

. to cover this interim effort until Phase II contracts are approved. 

DORIAN 

Emido via 

CETpi.:E Syzrien 
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••••••■•■,••••••••••• 

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It is anticipated that by late October negotiated costs will 

be available for your review for approximately 84 of the dollar 

value of the DP Program. Firmly based cost estimates will be 

provided for those parts of the program for which negotiated 

prices will not have been reached. Items in this category relate 

to the Aerojet and UTC portions of the Titan III effort which 

will total approximately $137 million and deferred contract items----1- 

on the Eastman Kodak, McDonnell, Douglas and General Electric coattracts which approximate $180 million. The Aerojet and UTC 

tracts are anticipated to be negotiated by November 15 and • 

December 31, respectively. As you know, long lead development 

effort has been underway with these contractors since early this 

year. The lateness of the UTC contract negotiation is due to its 

dependence on the outcome of the selection of a solid rocket 

booster contractor for the Titan /IID program. The deferred 

'items are such as acoustic and other mission payload segment 

testing with EKC, remote site operations and airborne spares 

-. requirements with McDonnell, field test operations with Douglas 

and field test operations and the acquisition and tracking sub-

;.system with General Electric. 

In summary, I expect to be able to'provide you by late' 

October with the firm cost data you require to 'support a decision 

on full-scale development of the MOL. Prior to that decision, 

I continue to protect the flight schedule, within the funding constraints you have stipulated • . - 

!: • 

HARRIL. EVANS 

Major.. General, USAF • 

Vice Director, MOL 

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SAF-SI, 21204.66 

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FROM ' OSAF 

SSD LOS ANGELES CALIF go 

CECT FROM SAF-SL(-7 0 8r 7/ AUG 1966 

Fr General Evans to General Berg. This message in 4 Parts. 

, Part I. PURPOSE: This directive provides interim 

authorization to proceed with those activities necessary to 

, 

rotoct development load time and the MOL flight schedule. 

Part II. BACKGROUND: In a memorandum to the Secretary 

of the Air Force dated July 20, 1966, Subject: MOL Program 

Plan and Funding Requirements, the Director, MOL Program. 

submitted for approval a plan for acquisition of the MOL system. 

This directive implements the decisions taken by the Secketary 

• 

with respect to the MOL Program Plan, a copy of which is 

enroute under separate cover. Part III. ACTIONS REQUIRED: 

..A -It 

• 

A. The Deputy Director, .MOL Program, will continue with 

the negotiation of contracts with .all major MOL associate 

yiS 

MONTH 

AUG 

PAGE NO 

1 

TIME 

SPCA.INSTRUGTIONS 

SAF-SL (3) 

• 

YEAR 

1966 

NO OP 

PAGES 3 

A 

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rv.E0 mwms AN) rfyLv 

0. C. MAY, Jr. 

Major, USAF 

Program Control Division 

u PITY CL•SSIFI.O.A.T.1.0.L+,..nm 

SIGNATURE 

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—vitre71,)Iire- 4-6fir,ylk.S0141-PrOgir..arri 

aEiNi\tSi}4d42,4)Mtkticr. ‘,-e-rt•van 

PHONE 

53889 

TYPED (or •/aaegmei) NAME ARO TITLE 

HARRY L. EVANS, Maj General, USA 

_ . 

1 
NRO APPROVED FOR 

RELEASE 1AJLY.2015 • ABCREVitIOM JOINT W 

and/or ONTINUATIC):: 

::::CLRtTY 'Cl„OSIFICATION 

. Aim 

Cri I- r,;4., 

• 

ACT ION 

INFO 

FtEtfftTf--- RELEASED Ds: 

1

DRAFTCD DY PHONE 

contractors on the basis of the flight schedules and objectives 1 

--defined in the Program Plan and will prepare for presentation 

to the Director, MOL Program, at the earliest practical 

opportunity. the total program cost and cost distribution by 

fiscal year resulting from these negotiations. Final determination 

of FY 67 and FY 68 funding levels will not be made by Director, 

MOL and higher authority prior to review of negotiated coats. You 

should make every effort to conclude negotiations ASAP. Authorization.. 

for full-scale MOL development is withheld, pending review by 

higher authority of negotiated program costa, B. The 'Deputy 

Director, MOL Program, is authorized and directed to obligate 

'FY 66 and FY 67 funds released by the Director, MOL Program, as 

necessary to protect schedules and development lead times. The 

rate of such obligation may not exceed the rate recommended by 

the Director, MOL Program, in the Program Plan. The option 

to limit FY 67 funds requirements to $208 million will be protected 

until January 1, 1967. This authorization will apply only until 

program approval for full-scale development and, in any event. 

will not apply beyond January 1, 1967. C. Every possible' 

PACE 

NO. 

CONTROL NO. TOR/TOD NO. OF 

PAGES 

MESSAGE IDENTIFICATION INITIAI 

RE503ApiNG;Q45S-orunietagl riwiaiv44., 1 SECURITY' C y ION 

cl NOY L,..1r:CJN:AJOLLLY DEOLASSUILD 

ra...„..roRo.,42)(12..ami Iii.200. f -10 • 

vireptifteTT EDITION or t MAY 55 WHICH MAY, SE USED. 
• 

NRO APPROVED FOR . 

RELEASE 'I JULY-201'3"- 

A13'REVIAT1riJOINT W 

and/or 06NTINUATIC.. 

SEC UR ITlyti,ChASO ICATION 

.•••••■••■ 

PHONE PRECEDENCE RELEASED BY DitAFTED BY 

effort will be made to hold FY 67 MOL Funding requirements 

• to the minimum consistent with the schedule and objectives 

for the first manned MOL flight. The Deputy Director, 

• MOL Program, will review present program planning to 

identify any items for which initiation of development can 

be deferred without adverse schedule impact on the first 

manned flight. Items so identified will be reported to the 

• Director, MOL. Program, at the time of review of total 

negotiated program costs. Part IV. Action is being taken 

through financial channels to provide $29.6 million for 

September and October requirements in accordance with 

your SA-SL-4 2254. Aug 66. GP-3 

NO. OF 

PAGES 

3 

TOR/TOD 

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MESSAGE IDENTIFICATION 

SECURITY Cl...ASSI.FdGis. ON 

• iLts • .. q 

PAGE 

NO. 

. 3 

INITIALS 
NRO APPROVED FOR 

RELEASE 1 JULY 2015 

DEPARTMENT X MR FORCE 

MANNED ORBITING LABORATORY, s'isT EMS PROGRAM OFFICE (OSAF) 

AF UNIT POST OFFICE, LOS ANGELES, CALIFORNIA 000.45 

• SITS108 

• I 

Pre.Contraot Coat Recognition for L'OL Progaibanooring:oolopaant 

Maze Lea4 aao Protection, DougUisAirerall ColvonY 

Dow;loo Airorort Con9LIrky 

Arra; lir. C, L. Ilumphrey 

• 

1. This letter is to confirm that pre-cOntractual costa in en mount 

no:: exceeding 0,000,000 will bo recognized oollimencing 1 Soptoubor 1966 

through 30 SepteLber 1966. This rocoGnition in based on Douglas Airier*" 

Company procoeding with oubjoct effort at its oval rink in anticipation 

of a contraot being placed for such orfort. It should bo recognized 

that in the event that a contract is not wood vith- Dougice Aircraft 

Cospany for' ouch oreolflod effort, nay pre.coatract costs OD incurred 

will not be reirobursca by the Goverment nor will ouch costs be used 

as the basis for submission of a claim. 

2, It is thoreforo agreed that in the event a Contract is placed With 

you) for the subjoct doacribed effort, the contractual instrument will 

contain the following provisions: 

Pre-Contract Costa. 

All coati' which have been incurred on end after 

1 1;eptenZer 1966 by the contractor in anticipation 

of this contract cad I.,rior to tho execution thereof, 

and which, if incurroci after tho execution of thin 

contract, would have boon conaiderod allowthle'costa 

hereunder, Shall be allowable coots hereunder; pcorvidod, 

boweveraanal% Goats aball not =cod. 04,000,0000.-.•