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DEPARTMENT OF THE AIR FORCE 

WASHINGTON, D. C. 20330 

--21„4,77(4 

OFFICE OF THE SECRETARY 

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MEMORANDUM FOR THE SECRETARY OF THE AIR FORCE 

SUBJECT: Manned Orbiting Laboratory Monthly Status 

Report 

The attached Status Report on the Manned Orbiting 

Laboratory (MOL) Program covers activities through 

December 31, 1966 and is submitted in accordance with 

the December 16, 1966 memorandum from the Office of 

the Secretary. 

JAMES 4ERGUSON 

V-- General, USAF 

Director, MOL Program 

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". 1111.11 

I. PROBLEMS 

A. FY 1967 Funds 

The total of funds released to the MOL Program 

since program approval in August 1965 has been approximately $213.2 million through December 31, 1966. This 

amount includes $50.0 million of FY 67 funds and $163.2 

million of prior year funds. The funds released to 

date are sufficient to cover contractor requirements 

only into January 1967. Documentation has been prepared 

to secure the approvals and release of the DoD deferred 

funds in the amount of $178.4 million. These funds are 

required by the MOL Program to cover contractors' 

expenditures through June 30, 1967. 

B. Easter Island 

Diplomatic clearance approval for the Easter 

Island MOL Abort Recovery Operation is urgently required. 

Repeated State/Defense requests for expedited action 

have been made, but as of January 3, 1967, approval had nalE 

not been received. MOL requirements necessitate a 

change to the airfield construction program currently 

in progress by a Chilean contractor. Authorization to • NEE 

discuss construction changes with the Chilean contractor 

is urgently required before construction proceeds beyond 

the point where changes can be made without serious delays 

and cost increases. $450K has been made available to 111M 

the for 

hot asphalt paving of the total runway length and increased taxiways and parking areas, as required for MOL 

operations. Because of the restriction on Chilean 

contractor communications, cold mix asphalt has been 

procured in accordance with the original plans and is 

scheduled for shipment to Chile in mid January 1967 with meimir , 

runway construction completion scheduled for March 1967. 

A cold mix asphalt runway will not support the C-130 

recovery aircraft. The diplomatic clearance to permit MINE 

contractor negotiation is most urgent to preclude 

the use of the cold mix asphalt. 

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II. CHANGES PAST MONTH 

A. Contract Negotiations 

Between December 15th and 20th, contract 

negotiations were satisfactorily concluded with Douglas, 

General Electric and McDonnell. The contracts remaining 

to be negotiated are with United Technology Center and 

Aerojet Corporation and these are expected to be negotiated 

before January 31. 

The Douglas, McDonnell and Martin Company and 

associates are fixed price incentive fee, the Eastman 

Kodak is a cost plus fixed fee, and the GE is a cost plus 

incentive fee arrangement. 

A briefing is being developed by the MOL Program 

Office to describe the particulars of the incentive 

arrangements for each of the contracts. The briefing 

will be presented to appropriate Washington area offices. 

B. Program Plan and Funding Requirements Document 

The document was updated to reflect the results 

of the Phase II contract negotiations and the resulting 

definitive fund requirements and baseline schedules. 

OSAF, DDR&E and MOL Policy Committee members have been 

provided copies of the document, or have been advised of 

its availability. 

C. Titan III Management Review 

Because of the concern about the substantial 

T-IIIM fund requirement increases, the Vice Director, 

MOL has asked the Commander, AFSC, to conduct a thorough 

management review of the total Titan III Program. Its 

purpose is to examine all aspects of management relationships and procedures, financial and costing procedures 

and technical requirements control for the overall 

Titan III Program and to assess the distribution of 

development efforts and costs among Titan IIIM and the 

other Titan configurations. 

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The Commander, AFSC, has designated a group of 

senior officers, primarily from Hq AFSC but including 

representatives from the MOL Program Office and SAFSS, 

to develop specific recommendations, where applicable, 

for management and financial improvements to the Titan 

IIIM and the other Titan III programs. This group, has 

visited the Titan III Systems Program Office, the MOL 

Systems Office and SAFSP on the West Coast, and is now 

engaged in visiting certain of the Titan IIIM associate 

contractors. It is anticipated that the results of the 

review will be presented to the Commander, AFSC by midJanuary. It is also planned to brief the results of the 

review to Dr. Flax and the MOL Vice Director. 

D. Phase II Negotiated Contract Review 

In response to General Keeling's request, a 

technical review was made of the Douglas, General Electric, 

T-IIIM and McDonnell contracts. A review team was designated by General Evans and was comprised of personnel 

from the MOL Program Office and AFSC. All of the review 

team members were proficient not only in the technical 

baseline of the major program segments, but in related 

functional areas as well. 

The documents reviewed included the Systems 

Performance/Design Requirements, Statement of Work, 

contractual exhibits, and specifications for contract 

end items. These documents were found to be complete 

and specific in defining the work to be accomplished. 

There is no duplication of effort among the contractors 

and program coverage is complete. Those hardware and 

software items not adequately defined, or in the process 

of resolution are to be definitized for negotiation by 

June 1967. 

Based on the report of the technical review 

team, the MOL Program contracts were judged to be complete 

and adequate. A copy of the report and recommendations 

was sent to General Keeling. 

E. Subcontractor Selections 

The MOL Program Office reviewed and concurred 

with the General Electric subcontractor selections of 

the Standard Kollsman Instrument Company for the star 

tracker, Nortronics Division of Northrop for the rate 

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gyro, Bell Aerosystem for the low "G" accelerometer, 

Raytheon for the mission data adapter unit and the 

Vector Manufacturing Company of United Aircraft for the 

PCM telemeter. 

III. CURRENT STATUS 

A. Flight Objectives Directive 

A proposed "Flight Objectives Directive for the 

MOL Program" has been drafted. It describes the general 

flight objectives to be accomplished by the end of the 

MOL Phase II development program. It is directive in 

nature and will be used as a guide to the implementation 

of the entire flight test program. It is intended to 

serve as a basis for the detailed flight test program as 

to content, relationships, and test philosophy. Preparation of the detailed flight test objectives for each 

individual flight is the responsibility of the Deputy 

Director, MOL but approval by the Director, MOL is 

required prior to publication. 

The proposed directive is being coordinated 

with affected activities prior to seeking its approval 

from the Office of the Secretary of the Air Force. 

B. MOL Follow-on Program Options 

A study is now in progress to define and compare 

several follow-on program options based on the use of 

MOL baseline configuration hardware. The purpose of the 

study is to make available basic data describing cost, 

schedule and facility load factors for combinations of 

manned and unmanned flights which might follow the last 

flight of the presently planned program. The study will 

also address cost, schedule and technical considerations 

involved in conversion from manned to unmanned configurations, and vice versa, at various phases in the vehicle 

production and checkout sequence. Results of the study 

are to be available by February 1, 1967. 

IV. FORECAST FOR FUTURE 

MOL Management Meeting 

The next management meeting will be held in 

Washington on January 5, 1967. The agenda is included 

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as an attachment. A report of the significant results 

of this meeting will be included in the January 31 

status report. 

V. DUE DATE FOR NEXT PROGRESS REPORT 

The next monthly MOL Progress Report will be 

submitted February 7, 1967. 

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