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DEPARTMENT OF THE AIR FORCE 

OFFICE OF THE SECRETARY 

MEMORANDUM 

31 March 1970 

MEMORANDUM FOR DR. SEAMANS 11111111111111.-- 

DR. McLUCAS 

SUBJECT: MOL Systems Office Termination 

• In his memorandum to you on December 23, 

1969, General Ferguson recommended close 

out of the MOL Systems Office in Los. Angeles 

on June 30, 1970, subject to timely accomplishment of MOL termination settlement 

actions (TAB A). General Ferguson has 

reviewed the termination efforts and now 

requests that the Systems Office closing 

date be extended to September 30, 1970 

(ATCH 1). We are mindful of these actions 

and recommend signature of the letter at 

ATCH 2. 

FREDERICK L. HOFMANN 

Major, USAF 

Asst Dep Dir Plans 

and Policy 

Office of Space. Systems 

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DEPARTMENT OF THE AIR FORCE 

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OFFICE OF THE SECRETARY 

December 23, 1969 

MEMORANDUM FOR DR. SEAMANS 

DR. mcLucAs/Na_ 

to SUBJECT: Manned Orbiting Laboratory (MOL) Program 

Close-Out Status 

Since the announcement of termination of the MOL Program 

some six months ago, very substantial progress has been 

 made toward the settlement of the MOL Program contracts, the 

reduction and reassignment of military and civilian personnel, 

and the disposition of useful and usable program hardware 

and technology. This report reviews our past actions and 

current status, and recommends actions for the total cessation 

of MOL activities. 

In his briefing to Dr. McLucas on July 18, 1969 General 

 Bleymaier noted that the terminated contractors were asking 

 for a total of $137.4M in settlement costs. This figure has 

 now been reduced to $128M, and is expected to be reduced 

 further. Therefore, the $125M FY 70 appropriation for MOL is 

 expected to satisfy all the government's MOL Program obligations, 

 although we may require the return of some portion of the $6.2M 

 transferred to for NRO use. The most recent reports 

 from the Termination Contracting Officers at each of the MOL 

 contractors reflects the following distribution of financial 

 requirements. 

Estimate* 

June 10 

$ 48.7M 

20.2 

27.6 

23.0 

6.9 

1.6 

7.2 

1.2 

1.0 

$137.4M 

Estimate* 

Sept 30 

$ 43.3M 

20.2 

27.4 

19.1 

6.9 

2.0 

9.6 

.1 

(.7) 

$127.9M 

 McDonnell Douglas (Huntington Beach 

 McDonnell Douglas (St. Louis) 

 General Electric (Valley Forge) 

co

m Aerojet General (Sacramento) 

so UTC (Sunnyvale) 

W AC Electronics Division (Milwaukee) > 

cs All Other 

Total 

*Includes special termination costs. 

 Eastman Kodak (Rochester) 

 Martin Marietta (Denver) 

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At the time of termination there were a total of 192 

military and 100 civilians assigned to the East and West Coast 

MOL activities. By November 30 these numbers had been reduced 

to 10 military and 16 civilians. I will outline my recommendations for the phase out of these people and activities 

later in this correspondence. 

The disposition of MOL hardware and technology is underway in accordance with the recommendations of the Ad Hoc Group 

on MOL Residuals. These were approved by you on September 29, 

1969 and are described in Attachments 1 and 2. The only 

change to these actions is that the Mission Development Simulator disposition is being deferred until February 1, 1970 

pending completion of a NASA sponsored study of the possible 

utilization and application of the MOL Acquisition and Tracking Scope hardware and technology. 

Program documentation and correspondence is being screened 

by both the East and West Coast offices. Documentation and 

correspondence considered significant for reference and 

historical purposes is being retained and retired. Arrangements have been made for BYEMAN storage in the Pentagon and 

at SAFSP in Los Angeles. 

In my view, we are moving towards the final MOL termination phase as rapidly as efficiency and legal requirements 

permit and, therefore, I suggest the following plan. 

My MOL Program Office in the Pentagon should be formally 

closed out on February 15, 1970. The Office now consists of 

three Officers, one Airman and two Civilian secretaries. 

One of these Officers is retiring and will go on terminal 

leave on December 18, 1969; the remaining military personnel 

have already been identified against USAF/AFSC personnel 

requirements. The availability of the secretaries will be 

reported to OSAF civilian personnel for reassignment to 

positions commensurate with their skills, and so as to cause 

them a minimum of personal inconvenience. 

Simultaneous with the close-out of the Program Office, 

I recommend that Brigadier General Lew Allen, SAFSS, be 

designated as the responsible point of contact for residual 

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MOL activities. He will have available to him the services 

of Lt Colonel Robert Hermann, SAFOIPIA, and Lt Colonel 

Norbert Walecka, SAFFM. Both Officers were previously 

assigned to the MOL Program Office and are knowledgeable and 

outstandingly capable of handling those MOL public information/ 

Congressional and financial matters which may occur. In 

addition, many other Officers formerly assigned to the MOL 

Program and Systems Offices will be available in the Washington 

area for quite some time in the future. This arrangement has 

been discussed with General Allen who concurs. 

I recommend also that the Systems Office in Los Angeles 

be scheduled for close-out on June 30, 1970. The military 

and civilian personnel remaining in the Systems Office are 

now in the process of completing their administrative tasks, 

and by March 31 administrative activities will be essentially 

complete; however, significant contractual and financial 

actions will continue for approximately the next 18 months 

until final contractual settlements are completed. By June 30, 

1970, Systems Office personnel strength will be reduced to 

10 people. The sustaining effort required until final settlement of the contracts will require the support of 6 to 8 

procurement specialists. These individuals can be assigned to 

the SAMS() procurement activity with part of their time devoted 

to non-MOL duties as the situation permits. Following the 

close of the MOL Washington Program Office on February 15 

General Higgins, AFSC, DCS/Procurement and Production will 

manage the contractual and fiscal details of the final termination activities supported by the specialists on the West 

Coast. These West Coast personnel can be released and 

reassigned to new duties in the subsequent 18 months as 

requirements permit. Every possible effort will be made to 

protect these people to insure that they are fully utilized 

and that they are given acceptable job opportunities at the 

completion of their MOL tasks. 

By these arrangements, I have provided for the senior 

and most experienced people to be available to finalize the 

MOL contractual and financial settlement details. It is my 

intention, however, to re-examine this plan in the MarchApril time period to be sure that the close-out of the 

Systems Office on June 30 will not, in any way, delay or 

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adversely affect termination settlement actions. If our 

termination settlement status is unsure, or if problems not 

now apparent should occur, then I will continue the activities 

of the Systems Office to some later date. 

Attachment 3 will accomplish these actions and has been 

prepared for your signature. 

To summarize briefly. We have made, and continue to 

make, satisfactory progress toward the total close-out of 

the MOL Program. The $125.0M FY 70 NOA is expected to cover 

all contract settlement costs. Administrative actions, including retirement and storage of important program documentation, including BYEMAN material, are almost complete. 

Program personnel have been reduced from 292 people at the 

time of termination to a current level of 26 people, and 

will be reduced to 14 by January 1, 1970, and to 6 or 8 after 

June 30, 1970. No outstanding actions requiring an MOL 

office staff will remain after that date. 

This report and its recommendations are for your 

review and comment. Should you desire to discuss any of 

the termination particulars in further detail, I or Colonel 

Ralph J. Ford who is my Assistant for MOL, at extension 50961 

in the Pentagon, will meet with you at your convenience. 

}61. 11 (/ L12 

JAMES FERGUSON 

General, USAF 

Director, MOL Program 

3 Atch 

a/s 

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DEPARTMENT OF THE AIR FORCE 

HEADQUARTERS AIR FORCE SYSTEMS COMMAND 

ANDREWS AIR FORCE BASE, WASHINGTON, D .0 20331 

2 6 MAR 1970 

MEMORANDUM FOR THE SECRETARY OF THE AIR FORCE 

SUBJECT: Manned Orbiting Laboratory Systems Office 

Your memorandum (Manned Orbiting Laboratory (MOL) Program, 8 Jan 

1970) (Atch 1) directed that the MOL Systems Office located at the Space 

and Missile Systems Organization, Los Angeles Air Force Station, be 

terminated effective June 30, 1970. The date of June 30, 1970, was recom- __ 

mended to you by me in my classified memorandum, Subject: Manned Orbiting 

' Laboratory (MOL) Program Closeout Status, dated December 23, 1969. 

Since that recommendation, additional facts have become available on 

the rate of MOL property disposition. While the disposition is proceeding 

satisfactorily, we will not be as far along on June 30, 1970, as first 

estimated. For this reason, I feel it would be in the best interest of 

the Government to retain the MOL Systems Office as a functioning entity 

until September 30, 1970. Therefore I request you sign the attached 

memorandum (Pitch 2) deferring the closing of the MOL Systems Office until 

that date. 

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cmigolor, 

VAT , A? 

FORGING MILITARY SPACEPOWER 
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oFrice OF THE SECRETARY 

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Cl RTMENT OF THE AIR FORCE 

WASHINGTON 20330 

January 8, 1970 

„• • •• 

• ; ' 

MEMORANDUM FOR ALL. OSAF OFFICES. 

AFC CS 

. SUBJECT: Manned Orbiting Laboratory (MOL) Program 

Effective February 15, 1970, the functions and activities 

of the Manned Orbiting Laboratory (MOL) Program Office, 

located in the Pentagon as part of the Office of the Secretary 

of the Air Force are terminated. The functions and activities 

of the MOL Systems Office located at the Space and Missile 

Systems Organization, Los Angeles Air Force Station, are to 

be terminated effective June 30, 1970. 

Such residual MOL contractual matters as may require 

attention should be referred to the Air Force Systems Command 

DCS/Procurement and Production. All, other MOL matters 

should be referred to the Secretary of the Air Force, Office 

of Space Systems, SAFSS for disposition. 

This memorandum supersedes and rescinds SAF Memorandum 

for the Chief of Staff dated January 19, 1965 and SAF Order 

Number 117.4, dated September 1, 1966; subject "Director 

of the Manned. Orbiting Laboratory (MOW Program." 

itroo.iloo S,"•C70.......smo 
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• 

/ DEPARTMENT OF THE AIR FORCE 

WASHINGTON 20330 

OFFICE OF THE SECRETARY APR 2 

MEMORANDUM FOR COMMANDER, AFSC 

SUBJECT: Manned Orbiting Laboratbry (MOL) Systems Office 

You are authorized to defer the closing of the MOL Systems Office, 

Space and Missile Systems Organization, Los Angeles Alr, Force Station, 

as directed in my memorandum, Subject: Manned Orbiting Laboratory (MOL) 

Program, dated January 8, 1970, from June 80, 1970, until September 30, 

1970.. 

• 

OHN L. MC LUCAS 

cting Secretary of the Air Force.