Exploring the Unknown - NASA's History Office

EXPLORING THE UNKNOWN 55
Bell Telephone Laboratories has been actively pursuing a program of research and
development in satellite communications. This work has been undertaken because of the
Bell System’s position as a major U.S. international communications carrier and the obligation
this imposes upon it to develop and provide any new means of communications that
hold promise of improving its services to the general public and the government. The Bell
System’s program, for developing a satellite communications system and for placing such
a system in commercial service in collaboration with the telecommunications agencies of
other countries, is expected to parallel in many respects the System’s achievements in the
development and establishment of transoceanic submarine telephone cable systems. As
was done with the cables, the Bell System will under- [2] take to work out mutually satisfactory
arrangements with the other United States international carriers whereby they can
obtain facilities for the services furnished by them.
We believe that NASA and the Bell System have a common interest in pointing experimental
work in the field of satellite communications toward the realization of a commercial
system as quickly as possible with a minimum of cost and without duplication of
effort. For this reason, we strongly favor Proposal 2 or Proposal 3, since the 6 kmc and
4 kmc frequencies are already being used in common carrier communications systems in
both the United States and Europe. The Bell Telephone Laboratories’ program, which is
based on the use of these frequencies, is well under way and maximum progress toward
our mutual goal will, we believe, be achieved with the experimental satellite contemplated
under Proposal 2 or 3. Not only will this permit the testing, in the experimental satellite,
of components of the kind that will be used in later prototypes of commercial
satellites, but valuable information will he obtained on the problems of sharing the proposed
frequencies by terrestrial and satellite common carrier systems.
In response to a specific NASA request, an offer to undertake this program on a costplus-fixed-fee
basis is associated with each of the proposals. In view of the Bell System
interest expressed above, however, each proposal also contains an offer to undertake the
program on a cost-sharing basis. These offers involve billing NASA an amount equal to
about one-fourth of the expense associated with Proposal 1 or a considerably smaller part
of the expense associated with Proposals 2 or 3, since the work to be undertaken under
these latter proposals will make a larger contribution to our own research and development
program than the work under Proposal 1. All of these cost-sharing offers are on a
cost reimbursement basis. Each offer, however, includes a maximum dollar limit of cost to
be billed to NASA.
The A. T. & T. Company has offered to provide ground station equipment and operation
in the United States and to undertake to arrange for related ground station equipment
and operation overseas. NASA has been assured that the United States ground
station will be operational in time to meet the planned launching schedule and that these
facilities will be made available to NASA for this experiment.
[3] Every attempt has been made to include in the three parts of our response, General
Evaluation Information, Scientific and Technical Proposal, and Cost Proposal, all of the
information requested in connection with this procurement. The representation relating
to small business is attached as a separate item.
This quotation, in response to NASA Request for Proposal GS-1861, is firm for a period
of ninety days from the date of this letter. Questions in connection with this quotation
should be directed to Mr. R. P. Wilson of this office on Extension 5735.
Sincerely
“C. R. Smith” [hand-signed]