TM 28 Jan 60 Thru 3 Feb 1960
(3) Douglas Aircraft Company, Inc.

1. (U) SA Ho. 61 to Contract AF 04(645)-65 is being written to incorporate the
results of the negotiations completed 22 Jamary 1960. ‘This SA will definitize .
Letter Contract Designated Supplemental Agreement No. 49, including Auendments 1
through 4, Anendments 1, 3, 4, 5, 7, and.8 of I/C Desig. GA No. 20, will incorporate
60 additional items of I0C-GSE and 15 Contract Change Notifications. This SA will
vp estimated cost. $28,114,129 and fixed fee $1,820,419, a total
of $29,954,548. : :

@. (U) ‘he transfer of THOR Pads 1 and 2 at Vandenberg AVS from GAC to AFBMD has
deen delayed pending acquisition of funds by AFBMD. bib teer pend theteprapeen fre
maintenance of the THOR 1 and 2 Pads vill be accomplished under Contract AF 04(647)-527.
3. (U) ARPA funds in the amount of $2.24 million have been initiated for the launch
ervices at AFMEC. Letter Contract AF 04(647)-554 will be issued to Douglas Aircraft
pres: Inc., for this effort which, vhen combined with the services provided under

NASA Contract HA S¥W-38, will afford the Government a launching capability at AFMIC
of one missile per month for the period 8 March 1960 through 28 February 1961.

(U) ABLESTAR Stage - Aerojet-General Corporation

(U) Amendment No. 1 to Letter Contract AF 04(647)-509 was transmitted to Aerojet-
General Corporation on 2 February 1960. ‘The amendment obligated an additional $200,000
(for a total now obligated of. $700,000) and made other changes and corrections of a
minor nature. We are still awaiting the analysis and coments of the ACO on the
Aerojet proposal. He has promised to forward these ccuments not later than Monday,
§ ¥ebruary 1960. We anticipate negotiating the definitive contract during the week
of 23 February 1960. A potentially serious problem has developed in that security
clearance on Space Electronics Corporation has been suspended as the result of two
security violations within recent months. ‘The problem is being investigated by the
Sixth Army and WOIP. Space Electronics Corporation is the major subcontractor and
lengthy suspension could cause serious slippage of the entire program.

(U) Liguia Hydrogen Testing Program

Contract AF 04(647)-547 with Douglas Aircraft Company, Inc., for this program
probably will not be formalized until 19: February 1960 due to the time required for
processing the Purchase Request and other documents. All the arrangements for the
Program, @.g., our furnishing of the liquid hydrogen, have been made.

+6) Solid Particle stuay

Contract AF 04(647)-221 with Stanford Research Institute (SRI) for the study concern-

the solid icles in the MINUTEMAN engine exhaust will be formalized on or
before 19 February 1960. This delay of approximately three weeks in formalization
is due to the necessary processing of papers and obtaining co-ordinations.

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DECLAS sis eu, DUW du 5200.10 6 °


WEEXLY DIARY ITEMS - LBZSA
28 January Thru 3 February 1960

(U) Letter Contrect AF 04(647)-h49 with Aeronutronics = Program 609A
i. The Definitive Contract vas returned from Initial Review without approval.

TBPC recommended that the type of contract be changed from a Cost

intends to perform only the work statement on the Definitive Contract without
fee, and that any subsequent new vork would be fee bearing. In writing the
Cost Reinbursement Contract, ve used CPEF provisions suitebly altered to delete
reference to fee. ‘Thus, if the first supplemental agreement was fee bearing
it would have been necessary to revise the general. proviaions and also to

2. We have received a requixement from WDZJM (AFEMD) to add e requirement --
for a transporter erector-launcher to the contract. While AFBMD wants this
added to the contract immedietely, we feel that the issuance of a CCN or
letter Contract amentment would be difficult to justify since this requirenent
hea been lmown to AFBMD for several weeks. We intend to negotiate this addition
(wach is simply a $70,000 subcontract) before giving the contractor authority
to proceed. .

3. dmentment #1. to the Letter Contract was processed this week to add $300,000
which will last the Contractor through 15 February, and we are now
second amendment to edd an additional sum to lest until 30 Maxch 1960.

(U) Contract aF 04 (647)-h76 with General Electric - Ocummications Satellite

The problem mentioned in last week's Diery regarding the "best efforts"
Clause has been resolved by means of negotiation with General Electric. The
result is a best efforts clause which specifies that. the Contractor must
[O° ‘prtomn either otha tate specie tx the schedule or until General
Electric has spent 1.7M of their own money, vhichever occurs later. ‘Thus, the
best efforts clause has been revised to take into consideration the unique
cost absorption feature of this contract.

(U) amendment #2 to Contract AF 04(6h7)-361. with STL (Definitive Contract
Number to be AF 04(647)-504) - SE/TTM for the Commmdication Satellite Progran

Negotiations heve not yet commenced with STL for the definitization of this
portion of Istter Contract AF 04(647)~361. The Air Force has an in-house

relationship with other contractors in the program who do not contract directly
with BMC, but rather the Army or WADD. A pre-negotiation pitch will be

made to IBFP and negotiations will probably commence next
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IFIED. DOD DiR 5200.10



(8) Contract ar 18(600)-1847 with Leokheed - Project "AICEM Insotrac”TM