T 

vir • - 

DEPARTMENT amr M K E 

DIRECTORATE OF SPECIAL PROJECTS (OSAF) 

AF UNIT POST OFFICE, LOS ANGELES, CALIFORNIA 90045 

BYE-40317-65 —"r 

1 5 NOV 1965 

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REPLY TO 

ATTN OF: 

SUBJECT : Unsatisfactory Performance by General Electric Missile and 

Space Division 

TO: Director, NRO (Dr. Fla 

Director, MOL (Genera Schriever) 

1. During the decision-making proces 

MOL program decisions leading to pub 

I was asked by the Under Secretary fo 

performance on SAFSP programs. Si 

performance has deteriorated, and inv 

has revealed conditions which invalida 

advisable the preservation of the optio 

MOL program after completion of Pha 

2. In addition to KY-9 telephone discu 

Under Secretary, I submitted a written 

This summary rated GE(MSD) perform 

which was terminated after five unsucc 

failures were caused by defects in GE 

overall performance (to that date) on P 

generally satisfactory performance in 

cost control, and satisfactory overall 

which preceded the final 

is announcement of the program, 

a summary statement of GE(MSD) 

ce the time of my reply, this 

stigation of this deterioration 

e my previous report, and make 

to discontinue GE(MSD) in the 

e I. 

sion of this subject with the 

summary by wire on 1 July 1965. 

nce unsatisfactory on Program 201, 

ssful flights where all controllin 

SD) components)., It rated the 

ogram 206 as acceptable, noting 

eeting specifications, marginal 

erformance. 

3. Overall flight performance on Program 206 was stated in the report 

as 57 percent, with 36 days of useable •roduct having been obtained from 

the 63 days of planned operations in th 19 flights that had been conducted 

to that date. If this overall performan e had been characteristit of the 

performance at the time of the report, I would have rated it as unsatisfactory. 

However, we had undergone a program stand-down in the previous December, 

in a concerted effort to get the reliabili y up to an acceptable standard. At 

the time of the report, this effort had parently been successful: the 

average performance for the last 5 flig is had been approximately 80 

percent, and was so stated in the repor . Taking this improvement into 

account, I gave a satisfactory rating on overall performance. 

4. After my submission of the report entioned above, the occurrence 

of the second OCV DC power supply fai ure in 3 flights indicated a relapse 

in the get-well process. The results o a subsequent examination of 

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procedures, test records, and disassembly of prime flight hardware 

showed conclusive evidence that serious deficiencies still existed. 

As a result, we have again had to initiate an intensive effort to get the 

GE(MSD) performance up to an acceptable steridatcl,an effort which 

inevitably will involve added program costs and further slip in schedules, 

even if otherwise successful. 

5. In this latest effort, as before, the company is being quite responsive, 

insofar as attitude and apparent internal efforts are concerned. Yet, 

whether the effort will be successful remains to be seen. We have just 

had another GE(MSD)-caused failure of the flight launched on 8 November. 

In addition to the catastrophic failure of a roll jet valve (apparently) in 

the vehicle control system, there were other vehicle failures which are 

not yet fully diagnosed but which also could have caused serious difficulties 

if the valve malfunction had not occurred. This failure brings the current 

performance record to 3 total mission failures, due to GE(MSD), of the 

last 5 Program 206 flights. 

6. I am aware that the expected contribution of the GE(MSD) experience 

gained on SAFSP programs, and their large base of cleared personnel 

were major factors in the decision to include this company in the MOL 

program. A review of their performance in perspective shows 3 total 

failures out of the last 5 flights, in a program almost 5 years old, with 

23 launches to date. They are now involved in the second major get-well 

effort in the last 12 months, both efforts required due to poor performance, 

in which the management has consistently shown the best intentions, but 

seems to require the stimulus of catastrophic failure to discover deficiencies 

in their quality control and manufacturing process, and has been unable to 

establish and maintain the capability to produce consistently reliable 

products after almost 5 years of effort and 23 launches. In view of the 

fact that the above unsatisfactory situation exists in a mature program, 

with a relatively stable, experienced management, and the management 

for the GE(MSD) MOL effort is all to be a newly established unit, I have 

serious doubts as to whether this company can deliver the quality of 

performance that will be essential to a successful MOL program. 

7. I therefore recommend that appropriate steps be taken now to assure 

that the option will exist to discontinue the presently planned use of 

GE(MSD) in the MOL program at the conclusion of the present Phase I 

contracts. This could be done by dividing the Phase II work which 

would otherwise be done by GE(MSD) between the two contractors with 

whom GE (MSD) would interface under present program plans. GE(MSD) 

could either be dropped entirely, or their participation reduced to the 

literal role of the public announcement as integrators of some (non-reconnaissance) experiments (on a basis which would insure that such experiments 

2 

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JOHN L. MARTIN, JR 

Brigadier General, USAF 

Director 

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would have no effect on the overall reliability of the MOL flights 

or the accomplishment of its primary mission). 

8. At the conclusion of the present Phase I MOL contracts, I will 

report any significant change in the GE(MSD) Program 206 performance, 

including flight performance and any tangible indications of any significant improvement in managerial effectiveness and the quality of the 

Program 206 products, which might warrant serious consideration of 

GE(MSD) continuance in Phase II in the role originally intended. 

Copies to: Gen Berg 

Mr. Paige(GE) 

3 Hen& BYE MAN 

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