NRO-MOL_2015
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Chapter IX - ORGANIZING FOR CONTRACT DEFINITION<br />
85<br />
Evans’ staff to provide the necessary <strong>NRO</strong>-<strong>MOL</strong> Program<br />
Office coordination. By late 1965 the entire management<br />
question went into limbo and not until many months<br />
later, when the program entered Phase II engineering<br />
development, was the organization revised. 20<br />
<strong>MOL</strong> Financial Procedures<br />
Discussions of “black” <strong>MOL</strong> financial procedures began<br />
in the summer of 1965 when the <strong>NRO</strong> Comptroller {... }<br />
proposed that the Air Force include a single <strong>MOL</strong> program<br />
element in the defense budget which would incorporate<br />
both “black” and “white” funds, with the <strong>MOL</strong> Program<br />
Office exercising a substantial level of control over the<br />
former. {The <strong>NRO</strong> Comptroller’s} plan became the basis<br />
for a series of discussions and reviews which led, on<br />
4 November, to the signing by Dr. Flax and General<br />
Schriever of a formal agreement governing “<strong>MOL</strong> Black<br />
Financial Procedures.” 21<br />
Under terms of this agreement the <strong>NRO</strong> Comptroller<br />
and the <strong>MOL</strong> Program Office would work together to<br />
prepare current and future year cost estimates of <strong>MOL</strong><br />
black requirements. These would be reviewed and<br />
approved by both the Director, <strong>NRO</strong>, and Director, <strong>MOL</strong>,<br />
before issuance. The responsibilities of the Director of<br />
Special Projects would include providing “black” cost<br />
estimates, coordinating with the Deputy Director, <strong>MOL</strong>,<br />
and forwarding them to the <strong>NRO</strong> Comptroller and the<br />
<strong>MOL</strong> Program Office. Authority to obligate the “black”<br />
funds would be issued by the <strong>NRO</strong> Comptroller directly<br />
to the Director of Special Projects, who would be held<br />
accountable for them. 22<br />
A companion agreement on “White Financial<br />
Procedures,” approved by Dr. Flax and {the <strong>NRO</strong><br />
Comptroller} in December 1965, also was promulgated.<br />
Signed by Assistant Secretary of the Air Force Leonard<br />
Marks, Jr., it provided that <strong>MOL</strong> white funds would go<br />
through normal AFSC channels to SSD for the <strong>MOL</strong><br />
Systems Office. The “white” financial agreement also<br />
outlined procedures for making budget estimates,<br />
preparing program change proposals, and submitting<br />
other financial papers required by OSD, the Bureau of<br />
the Budget, and Congress. 23<br />
The <strong>MOL</strong> Systems Office<br />
The day President Johnson announced the United<br />
States would build <strong>MOL</strong>, General Schriever dispatched<br />
Program Directive No. 65-1 to the Space Systems<br />
Division. This document, which provided authority<br />
“to establish and commence management functional<br />
activity for the Manned Orbiting Laboratory System<br />
(Program 632A),” required the Deputy Director, <strong>MOL</strong>, to<br />
submit by 15 September 1965 a <strong>MOL</strong> Systems Office<br />
management plan, organizational charts, job descriptions<br />
of key positions, etc., plus an Aerospace Corporation<br />
management plan in support of the program. 24<br />
The program directive was received by the <strong>MOL</strong> project<br />
office, which had been created in March 1964 under<br />
General Bleymaier, the SSD Deputy Commander for<br />
Manned Space Systems, and Colonel Brady, the System<br />
Program Director. By August 1965 this SPO had a staff of<br />
42 military and 23 civilian personnel. In accordance with<br />
Schriever’s directive, Bleymaier and Brady immediately<br />
initiated an office reorganization. The realigned SPO<br />
included separate divisions or offices for Program<br />
Control, Configuration Management, Engineering,<br />
Test Operations, Procurement and Production,<br />
Requirements, Bioastronautics, Facilities, and Navy<br />
liaison. On 23 September, after General Berg, the new<br />
Deputy Director, briefed him on the proposed new <strong>MOL</strong><br />
Systems Office structure, General Schriever approved<br />
the changes, which became effective 1 October. 25 (See<br />
chart, next page.)<br />
On 28-29 September, General Schriever held the first<br />
<strong>MOL</strong> Program Review Conference at SSD, attended by<br />
General Evans, Funk, Berg, Martin, and Bleymaier and<br />
Dr. Yarymovych, Colonel Brady and Aerospace’s Drs.<br />
Ivan Getting, Allen F. Donovan, Byron P. Leonard, and<br />
Walt Williams. They discussed the planned approach<br />
to <strong>MOL</strong> field management and agreed that the basic<br />
principles enunciated in the AFR 375 series of regulations<br />
would be applied. The conferees recognized, however,<br />
that judgement would have to be exercised “in that the<br />
<strong>MOL</strong> was not going into the operational inventory in the<br />
typical sense; and, hence, the series of regulations could<br />
not be totally adapted to the <strong>MOL</strong> program.”<br />
Later, General Schriever formally authorized Berg to<br />
deviate from standard system acquisition policies and<br />
procedures in the 375 series of regulations. 26<br />
During this meeting Aerospace Corporation officials<br />
briefed the USAF officers on their planned organizational<br />
structure for general systems engineering and technical<br />
development (GSE/TD) support of <strong>MOL</strong>. They indicated<br />
they would establish a <strong>MOL</strong> Technical Director within