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DEPARTMENT OF THE AIR FORCE 

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e DEC 1967 

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NIIR" Trjr1,77 

AMES FERGUSON 

General, USAF 

Director, MOL Program 

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OFFICE OF THE SECRETARY 

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 November 30, 1967 and is 

submitted in accordance with the November 16, 1967 memorandum from 

the Office of the Secretary. 

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I. PROBLEM 

Schedule and Funds 

Since early early in calendar year 1967, the MOL Program has been 

engaged in a continuing effort to achieve a realistic balance among 

program scope, schedules, and funding for the Engineering Development 

Phase of the MOL System. The present launch schedule, which 

envisions a first manned mission in December of 1970, was understood 

as early as last April to require approximately $510 million in 

FY 1968 NOA. As projected MOL funding decreased progressively from 

S510 million, through $480 million, to the present level of $430 

million, a major effort has been made to hold program schedules 

intact by deferring FY 1968 expenditures to later years. New 

requirements, which have been identified as Engineering Development 

progresses, have added to the complexity of the funding problem, as 

has the recent reduction of anticipated FY 1969 funding from $680 

million to $640 million. 

As noted in the October progress report, the above factors have 

now combined to create a situation in which existing program scope 

and schedules are altogether inconsistent with anticipated funding 

levels. 

II. CHANGE PAST MONTH 

A. Visit of Dr. Cannon to General Electric and Eastman 

On November 20 and 21, Dr. Robert Cannon, Air Force Chief 

Scientist, visited General Electric and Eastman Kodak for status 

briefings on GAMBIT and DORIAN. The presentations were generally 

well-received. 

B. MOL Program Review Council Meeting 

A MOL Program Review Council (PRC) meeting was convened in 

Washington on November 17 to discuss the program's technical, financia$ 

and schedule status. 

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Consequently, a major effort is now in progress to adjust program moll 

schedules and/or content to existing and projected fiscal constraints. 

The Associate Contractors are meeting at Huntington Beach during the 

period November 30 through December 6 to devise, and propose to the 

Air Force, a program which meets both the goals and constraints now 

recognized for MOL. This recommended program will be presented to 

Air Force management on December 7 and 8. MEN 

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Of particular concern were the increased total program costs 

and later flight schedules being proposed by the associate contractors. 

Their contention is that the combination of changes to program scope 

and content, together with reductions to current year and projected 

funding levels, is causing costs to escalate, and schedule to slip. 

The PRC made known its dissatisfaction with the contractors' 

position. As a result of subsequent meetings and discussions, the 

contractors were directed to undertake a comprehensive program review 

with the objective of identifying a program which will achieve basic 

program goals within reasonable cost and time parameters. The results 

are to be presented to the Air Force on December 7 and 8. 

C. AFSC Operation Order for Support of MOL 

Air Force Systems Command Operation Order No. 67-21, Support 

of the Manned Orbiting Laboratory Program, was issued on November 14. 

This order, which supersedes a previous AFSC Operation Order for 

support of MOL, defines the general framework within which Systems 

Command resources will be applied to MOL. 

III. CURRENT STATUS 

A. Funds 

No fund releases to MOL operating activities were made 

by the Director, MOL during November. With the realignment in 

schedule now anticipated, funds available to the Air Force will cover 

program requirements into early January. A request for OSD release 

of additional funds will be made at that time. 

B. Easter Island Recovery Base 

On November 14, 1967, the State Department received a 

translation of a letter from the Defense Minister of Chile, Mr. 

Carmona to Mr. Dean of the American Embassy in Chile. The Air Force 

General Counsel's Office has advised the MOL Program Office that the 

letter, in effect, constitutes agreement for MOL Recovery Operations 

from Easter Island. An exchange of letters between the USAF and 

Chilean Air Force Chiefs of Staff will be initiated shortly so that 

the necessary teams can be assigned to work out detailed arrangements. 

C. Cost/Schedule Planning and Control System 

The Air Force team evaluating the Cost Schedule Planning 

and Control System at Douglas met at the contractor's plant during 

the first two weeks of November for a demonstration of the system. 

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The team reconvened at the Systems Office during the last week of 

November to complete its evaluation. The team concluded that the 

Douglas approach was sound, although certain areas require improvement 

and refinement. Therefore, the Douglas system was given a conditional 

acceptance. The results have been briefed to General Bleymaier; 

Secretary Marks will be briefed on December 12. The final report 

will be published the latter part of December. 

IV. FORECAST FOR FUTURE 

Management Meeting 

An internal management meeting is scheduled for December 7-8 

in Los Angeles. Its purpose will be to determine the acceptability 

of the contractors' program proposals to be presented to MOL Program 

management at the meeting. 

Subsequent program actions will depend on the acceptability of 

the contractors' proposals or the alternatives thereto. 

V. DUE DATE FOR NEXT PROGRESS REPORT 

The next monthly MOL Program Progress Report will be submitted 

January 8, 1968. 

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