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DEPARTMENT OF THE AIR FORCEControl System 

WASHINGTON 20330 

JUN 5 1967 

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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 

May 31, 1967 and is submitted in accordance with the 

May 15, 1967 memorandum om the Off e of the Secretary. 

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T. STEWART 

ajor General, USAF 

ice Director, MOL Program 
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011111111111 

1. PROBLEM 

FY 1968 Funds 

The present MOL Engineering Development Phase program 

is based upon availability of $480 million (NOA) in FY 1968. 

This planning assumes that some $50 million will be 

reprogrammed from Air Force sources to augment the $430 

million presently proposed in the DOD Appropriation Bill 

for FY 1968. ODDR&E has indicated in informal discussions 

that some tangible evidence of Air Force intent to reprogram 

these funds is desirable. The MOL Program Office therefore 

has proposed that a formal requirement for approximately 

$445 million be identified in the FY 1968 apportionment 

request, along with a statement of intent to reprogram 

additional funds (up to a total NOA of $480 million) later 

in the year. 

II. CHANGE PAST MONTH 

A. MOL Program Management Realignment 

A major reorientation of management responsibilities, 

functions, and organizational relationships between the 

Director, MOL and the Director, Special Projects, for the 

Engineering Development Phase of the MOL Program is in 

progress. 

Under this realignment, effective July 1, 1967, 

the Director, MOL will become responsible to the Secretary 

of the Air Force and the Director, National Reconnaissance 

Office (DNRO) for the development, acquisition and test of 

the total MOL system in the approved baseline program, 

including the DORIAN payload. To accommodate the realignment 

of procurement functions, the Deputy Chief of Staff, Procurement and Production, Headquarters, Air Force Systems Command 

will be assigned additional duties as Assistant Director, 

MOL (Procurement); his authorities will be broadened to 

encompass covert DORIAN contracting. Systems Engineering/ 

Technical Direction and Contract Management responsibilities 

for the DORIAN contracts with Eastman Kodak, General 

Electric and Douglas will transfer to the MOL Systems Office 

in parallel with the transfer of procurement responsibilities. 

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B. Congressional 

Several questions on MOL funding and schedule were 

posed by Senator Russell for inclusion in the record of the 

Joint Senate Armed Services Committee and Defense Appropriations Subcommittee. Answers to these questions were 

prepared and submitted to General Crow. 

On May 3, General Stewart gave a DORIAN briefing 

to Chairman Mahon, Congressman Lipscomb, and Staff Members 

Preston and Michaels of the DOD Subcommittee of the House 

Committee on Appropriations. In response to a request 

from Messrs Mahon and Lipscomb, a talking paper on development of an "Unmanned MOL" was prepared and forwarded 

through General Crow. 

Information on the signing of the Douglas and 

McDonnell contracts was released by DOD on May 19. The 

General Electric contract award was announced by DOD on 

May 29. In all three cases, SAFSL determined that formal 

Congressional notification was not required. 

C. MOL Program Contracts 

On May 17, the Air Force awarded a definitized FPIF 

contract, with a target price of $674,703,744, to Douglas 

for MOL white Engineering Development Phase effort. Distribution of the Douglas "black" contract, valued at approximately $13 million, has been delayed pending final approval 

of the management realignment now in progress. The 

announced contract figure does not include the estimated 

cost of the recent one-year schedule slip, or the cost of 

certain deferred items which remain to be definitized. The 

estimated total cost of the Douglas MOL effort is $828.7 

million. 

On May 18, the Air Force awarded a definitized 

FPIF contract, with a target price of $180.469,000,to 

McDonnell for engineering development of the Gemini B segment 

of the MOL System. This figure does not include the estimated 

cost of the recent schedule stretchout or deferrals. Total 

estimated cost of the McDonnell MOL effort is $261 million. 

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On May 29, the Air Force awarded a CPIF contract, 

with a target price of $110,020,000, to General Electric 

for white MOL Phase II effort. Distribution of a related 

black contract for approximately $60 million awaits final 

approval of the current management realignment. These 

figures do not include the estimated cost of the recent 

schedule adjustment or the value of certain deferred items. 

Total estimated price of the GE MOL effort is $339.5 million. 

D. MOL Astronaut Selection 

The MOL Astronaut Selection Board met on May 11-12 

to consider eight (8) additional candidates. The Board 

recommended selection of four officers: 

Major James A. Abrahamson FR54254 

Lt Colonel Robert T. Hewes FR26091 

Captain Robert H. Lawrence, Jr. FR58024 

Major Donald H. Peterson FR27376 

After formal notification to the Chief of Staff 

of the results of the selection, arrangements will be made 

by SAFOI with OASD(PA) and other interested government 

agencies for a suitable public announcement. Identity of 

the selectees is being treated as sensitive information 

until such time as a public release is made. 

E. May MOL Management Meeting 

The monthly Management Meeting was held at the 

Pentagon on May 11. Principal agenda item was a review of 

schedule/funding options for the Engineering Development 

Phase of the Program. 

A decision was reached, after a meeting between 

Dr. Brown, Dr. Flax and General Stewart on May 12, to proceed 

on a schedule pointing toward a first manned reconnaissance 

flight in December, 1970, against FY 1968/1969 budget 

constraints of $480/$661 million. It was also agreed that 

the Phase II contracts and appropriate supplements should 

be signed and distributed as soon as possible. 

A copy of the meeting record is appended as 

Attachment 1. 

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III. CURRENT STATUS 

A. Funds 

Funds in the amount of $58,446 million were 

released by DDR&E during May to the MOL Program. A total 

of $228.446 million NOA was programmed for MOL in FY 1967; 

this total has now been received by the Air Force. The 

entire $58,446 million, plus $7.0 million previously 

retained by the Director, MOL, were released to MOL operating 

activities during May. With this action, all funds received 

have been issued to fund program requirements through June 30, 

1967. It is anticipated that all funds will be obligated by 

mid-June. 

B. Cost Planning and Control System 

Direction has been received from SAFFM that the 

validation of the Douglas Cost/Schedule Planning and Control 

System (C/SPCS) will be accomplished under the leadership 

of a Headquarters, Air Force Systems Command, team with 

participation of the MOL Systems Office. The Systems Command 

lead in the MOL C/SPCS validation exercise should simplify 

future demonstrations on other Douglas contracts and assure 

Air Force-wide uniformity in implementing C/SPCS. The 

Vice Director, MOL, has advised SAFFM that there is no 

objection to the AFSC lead; arrangements are underway between the MOL Systems Office and the appropriate Systems 

Command personnel. 

IV. FORECAST FOR FUTURE 

A. MOL Executive Council Meeting 

The initial meeting of the MOL Executive Council, 

an executive-level advisory body made up of senior Air 

Force and Industry MOL managers, is scheduled for Wednesday, 

June 7, 1967. The meeting will convene at 9:30 A.M. at 

Headquarters Air Force Systems Command, Andrews AFB. 

B. Update of Program Plan 

Arrangements have been made to prepare an updated 

"Program Plan and Funding Requirements" document to be 

transmitted by SAF to DDR&E prior to the FY 1968 apportionment. 

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A group made up of personnel from both the East 

and West Coast MOL Offices will initiate this effort on 

June 1, submit the document for Director, MOL review and 

approval not later than June 9, and have the document ready 

for SAF review, approval and forwarding to DDR&E by June 15. 

C. MOL Management Meeting 

The next meeting is tentatively planned for the 

week of June 26, and will convene in Los Angeles. A firm 

date and meeting agenda will be established about June 15. 

D. MOL Policy Committee Meeting 

The MOL Policy Committee will meet at 2:30 P. M. 

on Thursday, June 1, to review MOL progress and plans, 

and to consider the MOL management realignment now in 

progress. 

V. DUE DATE FOR NEXT PROGRESS REPORT 

The next monthly MOL Progress Report will be submitted 

July 10, 1967. 

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