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3.AFSL - I. 20 January 1967 

2vi.E.MORANDUNI FOR IvIAJ GEN EVANS, SA.F-SL 

SUBJECT: Delegation of Authority and Designation as Head of a 

Procuring A ctivity 

1. Procurement authorities are fragmented for two of the major MOL 

associate contractors. Therefore, the Director, MOL, does not have 

authority commensurate with his responsibility for the total program 

accon-iplishment. The General Electric MOL effort is divided near 

equally between Special Projects and the MOL SPO. Although duplication of effort in the procurement working organizations has been 

minimized by personal working relationships, the task difficulty is 

magnified by dual technically cognizant management and SE/TD offices, 

dual reporting channels, and dual management structures. Similar but 

no less perplexing problems exist with the Douglas effort even though 

the Special Projects' effort is only about 2% of the total MOL program 

effort. 

2. The purpose of this memorandum is to request that procurement 

authority relative to black MOL contracts be delegated to DCS/Procurement and Production, Hq AFSC. This would affect a consolidation of 

procurement authority since the white MOL contracts are handled under 

the procurement authority delegated to that office including manual 

approval of contracts over $5 million. The procurement authority 

requested includes the responsibilities of contract writing, review, 

distribution, administration and audit. It does not pertain in any way 

to contractual authority or responsibilities concerning Eastman Kodak 

Company nor does it anticipate the changing of present security 

responsibilities. 

3. Attached is the necessary delegation of authority which has been 

prepared for the signature of Secretary Flax (Attachment 1). Approval 

is needed as soon as possible in order that General Keeling may sign 

those contracts which have been negotiated. 

4. To operate with adequate security, it will be necessary to obtain 

certain waivers to ASPR, AFPI and other directives similar to those 

granted SAFSP. Some examples are: Examination of Records 
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(A3PR 7-104.15 and 7-203.7); Subcontracts (A3PR 7-203.8); Notice 

to the Government of Labor -Disputes (A3PR 7-104.4); Renegotiation 

(A3PR 7- :04.11); and also a normal number of reporting requirements. 

These will be submitted as needed after the requested delegation of 

procurement authority is received. 

5. The following is a brief discussion of the specific operations 

involved: 

a. Preparation and Writing of Contracts. Within the 1\,,teL 3P0, 

the contract writing will be accomplished by a fully qualified contract 

writer with the assistance of a procurement clerk. 

b. Review of Contracts. Contract review will be accomplished by 

cleared personnel with the Procurement Committee at SSD and at Fig 

AFSC. Legal assistance will be obtained from cleared personnel 

within JAG 3SD. 

c. Distribution of Contracts. After signature, four copies of each 

contract will be distributed along with all subsequent changes. One to 

the 11 /4,10L SPO file, one to the contractor, one to the ACO and one to 

Gen .Evans office. 

d. Administering of Contracts. There presently exists a cleared 

base of people both at Valley Forge, Pennsylvania and at Huntington 

Beach, California to handle this activity. 

e. Audit of Contracts. To be done by DCAA cleared auditors. 

f. Funding. Obligation authority will flow from 

to Colonel Clifford Kester, Chief, 11OL SPO Program Control 

Division. Reports will flow from Col Kester to These 

reports are such items as completed obligation authority and monthly 

fund status. 

g. Security. The MOL SPO would handle receipt and transmission 

of contract and funding documentation, would be responsible for enforcing contractor security discipline and would approve contractor 

personnel for access to classified information. SAFSP would continue 

to be responsible for, and operate, the black communications center. 

h. Payment of Vouchers. The contractor will send the vouchers 

to the IVIOL. 3P0. A fter review, the SPO will file all black supporting 

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documentation and forward the unclassified voucher to a cleared SSD 

Finance Officer with a certificate that supporting documents are on 

file. 

6. It is intended that certain procurement authorities normally 

redelegated to AFSC Divisions would be redelegated to the Deputy 

Director, MOL. Attachment 2, which has been prepared for the 

signature of General Keeling, defines the specifics relative to such 

redelegation. 

7. Request approval of the attached delegation of authority be obtained. 

PAUL J. HERAN, Colonel, USAF 

Asst Deputy Director, MOL 

2 Atch 

1. Ltr to Gen Keeling 

2. Ltr fr Gen Keeling 

to Dep Dir, MOL 
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SUBJECT: Delegation of Authority and Designation as Head of a 

Procuring Activity 

TO: AFSC (SCK/Maj Gen Keeling) 

1. Pursuant to the National Security Act of 1947, as amended; 

Chapter 137, Title 10, U. S. Code; Section 8012, Title 10, U. 3. 

Code; and other pertinent statutes, regulations and directives, 

authority to act for the Secretary of the Air Force or the Assistant 

Secretary of the Air Force (Installations & Logistics),in the following particulars is hereby delegated to the Deputy Chief of Staff, 

ProCureinent and-Production, Hq AFSC, in respect to all projects 

and programs entered into or administered under the authority of 

the Director, MOL: 

a. To enter into, approve, and take other action in respect to 

contracts, change orders, supplemental agreements, awards, letter 

contracts, leases, amendments of contracts and other contractual 

instruments. 

b. To approve such deviations from the Armed Services Procurement Regulation (ASPR) as the Director of Procurement Policy, 

Deputy Chief of Staff, Systems and Logistics, Hq USAF, is authorized 

to approve by Air Force Procurement Instruction (AFPI) 1-109.2. 

2. In connection with the delegation set forth above, and subject to 

ASPR and AFPI, it is intended hereby that DC3, Procurement and 

Production, Hq AFSC, may exercise those procurement authorities 

which have been delegated to the Commander of AFSC as "Head of a 

Procuring Activity" and which have been redelegated to DCS, Procurement and Production, Hq AFSC. 

3. The authorities hereby delegated may be redelegated, in writing, 

to Deputy Director, Manned Orbiting Laboratory (MOL) under such 

terms, conditions and limitations as are considered appropriate. 

4. The authorities hereby delegated, and all provisions of the 

preceding paragraphs, pertain to all MOL contractual arrangements 

with the exception of the Eastman Kodak Company. 
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SCK 

Redelegation of Procurement Authority 

Deputy Director, Manned Orbiting Laboratory Program 

1. Redelegable procurement authorities which are now vested in the 

undersigned with respect to the making, approving and administration 

of contracts and modifications thereto, are hereby redelegated to the 

Deputy Director of Manned Orbiting Laboratory Programs, for the 

purpose of entering into, approving, or administering contracts 

relating to the Manned Orbiting Laboratory Program as follows: 

a. Approve the issuance of letter contracts without monetary 

limitation. 

b. Enter into, execute and manually approve contracts awarded 

as a result of formal advertising or small business restricted advertising, irrespective of dollar amount. 

c. Enter into, execute and manually approve negotiated contracts 

for procurements of $5, 000, 000. 00 or less. 

d. Make Determinations and Findings in support of incentive 

type, cost type and CPFF type contracts. 

e. Control Government-owned industrial property and, in 

connection therewith: 

(1) Correct and adjust deficiencies. 

(2) Grant exceptions to policy that contractor records will 

be designated as official records. 

(3) Appoint property administrators. 

f. Approve PR's and MIPR's without dollar limitations. 

g. Release program data and procurement information. 
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h. A ppr ove repricing actions. 

1. Apply or assign DO and DX ratings. 

j. Approve waivers of FCR requirerre nts. 

k. Authority to override negative FCRis. 

I. Authorize exceptions to the use of new contracts for follow-on 

procurements. 

Enter into and manually approve facilities contracts. 

n. 

Manually approve supplemental agreements for engineering 

changes and other contractual actions. 

o. 

Manually approve contractual instruments which obligate overruns on cost reimbursement contracts. 

p. Approve the use of liquidated damages provisions. 

q. Terminate and settle contracts: 

(I) Terminate for convenience of the Government. 

(2) Settle termination claims and enter into settlement 

agreements. 

r. 

Authorize publication of advertisements, notices or proposals 

in newspapers. 

G. F. KEELING, Maj Gen, USAF 

DCA, Procurement & Production 

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