General Schriever: By negotiations and a meeting with 

contractors I had yesterday. 

of na3c-4, 3 

Coy s..3 of c .naies 

-Cont5,-.01 y-6 ,A/X.W--6‘ 

NRO APPROVED FOR 

RELEASE 1 JULY 2015 riamila via PHAN 

- efitruiSystoil 

(04.-3 — 20 May. 1966 SUBJECT: MOL Policy Committee Meeting 

ATTENDEES: General Evans 

General Furguson 

Secretary Flax 

Secretary Paul 

Secretary Brown 

General Berg 

Colonel Randall 

Colonel Dennen 

Colonel Walling 

Colonel Lind 

Colonel Dietrich 

Dr. Yarymovych 

Mr. Sampson 

Secretary Marks 

General Schriever 

General Blanchard 

General Evans: Introduction. 

General Berg: Status of program and confidence in cost estimate. 

Secretary Brown: Point: 337 for. FY 67 was based upon early 

1969 first flight. 

Mr. Sampson: Concept and descriptions of system. 

Secretary Brown: Let's review frames versus targets. 

Clarified in discussion by Dr. Flax. 

Are we band width limited? Discussion of 

variation in auto mode, effect of crypto 

security and number of ground stations. 

General Schriever: Satellite control not like Houston -- much 

smaller. 

Colonel Lind: 

Secretary Brown: Makes you wonder if DAC knows what the 

program is. Referred to independent estimate 

versus DAC proposal (9-shot program). 

Dr. Flax: Questioned the need for 19.0 more in 1967 

for Option 6. Expansion and clarification of 

request for increase in 1967. 

General Blanchard: How are you going to get down to 1751? 
NRO APPROVED FOR 

RELEASE 1 JULY 2015 

rivriklAti 

L=rx-i) a:4Lagii 4 

tla0., I 

Discussed meeting with top management 

of MOL contractors: "I think contractors 

will come in lower than $2. 3 billion. " 

Used Martin example of TIIIM costing. 

Secretary Brown: "If Navy wants the below the line, they 

better put it up. " 

General Evans and Dr. Flax clarified 

point that definition for Navy programs is 

a part of our line item. 

Secretary Brown: "I won't say that the 3.0 (Navy) comes 

before the 80 required in 1967 for basic 

MOL Program". 

Not clear that 80 will survive committee 

action, unless we can prove need. 

General Berg: Summary & General Discussion: 

General Schriever: He and Dr. Flax recommend Option 6. 

Dr. Brown agreed; with point of need 

to resolve what is in first manned flight. 

Dr. Flax: Discussed compatibility model. Might as well put 

it in orbit. Forces other contractors to recognize 

need to fly on schedule. Even if we change our 

mind later, we will minimize the effect of individual 

contractor problems not being resolved until second 

manned flight. Heat also is on EK to do quality 

job initially. Dr. Brown agreed. 

General Schriever: 30 days out of 7 months factory-to-pad 

flow will help. Contractors will support 

the schedule. 

Secretary Brown: Even if 19 more in 1967, Option 6 looks 

better. 

Secretary Marks: Illusionary saving by cutting back end of 

program. Flax pointed out early intelligence 

return is worth it. 

Explanations in general sense will have to be 

honed down to specifics for each element of 

cost increase. Like in F-111 program. 

pages 

Copy 2_ of S.— e 

.7..02-.S.L Control e-f445--e--Vi■-,- 
NRO APPROVED FOR 

RELEASE 1 JULY 2015 

fu ik6/ 

Ceritml SyaLdr 

Hope someone is working this for third 

floor. 

General Berg stated we have completed this 

exercise. 

General Schriever: Since we did not have firm quotes from 

contractors, don't believe contingency 

should be added. Brown agreed. 

Dr. Brown: When you negotiate the contracts, then change 

program estimate. No contingency: to protectagainst leaks to contractors and thus not have 

them include these dollars in their proposals. 

Secretary Marks: 

Secretary Brown: 

80 will cause drastic change to AF Program. 

Must get the 80 through Committee. 

"We have not been directed to do MOL yet." 

Comment was made with respect to priority 

for dollars". 

What's to DOD? 

General Evans: What you have seen plus details of cost data. 

FY 67 in detail. 

Secretary Brown: I don't have confidence we're within $20 

million of estimate. I don't think, even 

with all the fine work done, you know it 

to that tolerance. 

Secretary Paul: May get some static on Option 6 downstairs. 

Summary: The guidance provided as a result of the briefing appeared 

to be as follows: 

1. Use 7-shot program on Option 6 schedule. 

2. No contingency should be added to the SPO cost 

estimate at this time. 

3. When negotiations are concluded with contractors, 

a firm program cost baseline can be established. 

4. The FY 67 budget requirements should be discussed 

with DOD using the SPO estimate. 

Page 4 of pages 

Copy of copies 

Cortro 47.2744466