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DEPARTMENT OF THE AIR FORCE 

WASHINGTON 20330 

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OFFICE OF THE SECRETARY 

OCT 9 1967 

MEMORANDUM FOR THE SECRETARY OF THE AIR FORCE 

JAMES FERGUSON 

General, USAF 

Director, MOL Program 

SUBJECT: Manned Orbiting Laboratory Monthly Status Report 

The attached Status Report on the Manned Orbiting Laboratory 

(MOL) Program covers activities through September 30, 1967 and 

is submitted in accordance with the September 15, 1967 memorandum 

from the Office of the Secretary. 

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DORIAN 

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I. PROBLEM 

In the Draft Presidential Memorandum issued in September, the 

MOL FY 69 NOA requirements are reflected at $640 million ($680 

million was requested). It is difficult to predict, at this point 

in time, the precise expenditures in FY 69 and, therefore, the 

possible impact of this reduction. An initial assessment is that 

if the program is adequately funded in FY 68, the Systems Office 

should be able to manage around a potential 6% deficit in FY 69. 

Of more immediate concern is FY 68 financing. The program 

presently is funded at the $440 million FY 68 NOA level, but is 

proceeding at a pace which the Program and Systems Offices believe 

will require $480 million NOA. The option is available, however, 

at least through October, to "bend" the program over to the $440 

million level without undue chaos, should that become necessary. 

Detailed financial analyses of actual and forecast expenditures 

and FY 68 NOA requirements, the impact of a $440 million level, 

funding, etc., will be conducted in October. The situation will be 

assessed then and an appropriate course of action recommended. 

II. CHANGE PAST MONTH 

A. Secretary of Defense Visit 

The visit by the Secretary of Defense to the Eastman Kodak 

Company was completed as scheduled on September 14, 1967. Members 

of the Secretary's party included Dr. Brown, Dr. Foster, Dr. Flax 

and Mr. Fink. 

B. Department of the Army Staff Briefing 

The Vice Director, MOL, presented a DORIAN-level program 

briefing on September 12 to a group of Department of the Army 

officials including Deputy Assistant Secretary of the Army (R&D), 

Mr. C. L. Poor, and Chief of Research and Development, Lt. General 

A. W. Betts. The briefing covered current program status, schedules 

and progress in development of hardware items and facilities. 

C. MOL Feeding System Source Selection 

The Whirlpool Corporation, Life Support Division, St. Joseri, 

Michigan has been selected to provide the crew diet development and 

the food packaging system for MOL. Following open solicitation 

for bids, the selection of contractor was by Source Selection Board. 

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A two year firm fixed price contract was negotiated for $192,000. 

A negotiated option to extend the contract an additional two years, 

at the election of the government, is included in the present contract. 

D. MOL Program Review Council Meeting 

The MOL Program Review Council met on September 29 at the 

Pentagon. Principals in attendance were Dr. Flax, General Ferguson, 

General Stewart, General Bleymaier, General Berg, General Martin, 

Dr. Leonard and Dr. Yarymovych. The results of this meeting are 

summarized in attachment 1. 

E. General Accounting Office 

In July 1967, MOL was advised of GAO's intent to "take a 

broad overview of the MOL Program." In consideration of the level of 

contractual effort in the Byeman System, security-related difficulties 

were envisioned. It was felt that it would serve no purpose to clear 

the GAO auditors because the problem went beyond clearances; the data 

and documentation derived in a GAO audit would have to be controlled 

under Byeman rules. In these circumstances, Mr. William Newman, 

Director of the Defense Division, GAO (previously cleared DORIAN) was 

approached. He agreed to allow the DCAA NRO Audit Group to collect 

information desired or required by GAO, and to appoint a GAO representative to review the information. On September 26, 1967, Mr. 

Harold Rubin of the GAO was briefed DORIAN for this purpose. 

III. CURRENT STATUS 

A. Funds 

Of the $120,000,000 (FY 68) released by DOD to MOL on July 1, 

$116,400,000 had been further released to MOL operating activities 

as of September 30. 

On September 26, a request for release of the remaining 

$320,000,000 in deferred FY 68 MOL funds was forwarded to DDR&E. 

Dr. Flax' memorandum requesting the release noted that should the 

entire $320,000,000 not be available, a minimum of $130,000,000 to 

cover the second fiscal quarter would be required. ODDR&E advised 

the MOL Program Office on October 3 that $130,000,000 has been released. 

B. Congressional 

On September 25, Mr. James Gehrig, Staff Director of the 

Senate Committee on Aeronautical and Space Sciences (Chairman Anderson), 

received an update MOL Program briefing. Mr. Gehrig suggested that 

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the Chairman and other eligible Committee members should receive an 

update briefing early in January; he plans to talk with Senator 

Anderson about briefing arrangements. Mr. Gehrig also expressed 

interest in visiting Douglas, Vandenberg AFB, and Eastman Kodak 

sometime this fall: 

IV. FORECAST FOR FUTURE 

During the August 29 MOL briefings to PSAC, the Air Force was 

asked to investigate and report on Zero "G" test techniques, IVS 

resolution, and image intensification techniques. A report will be 

prepared for the PSAC on these subjects during October. 

V. DUE DATE FOR NEXT PROGRESS REPORT 

The next monthly MOL Program Progress Report will be submitted 

November 7, 1967. 

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