CIA-RDP79-00999A000300030010-8

Approved For elease 2003/03/28 : CIA-RDP79-00999
00300030010-8
CONFIDENTNT
21 June 1973
MEMORANDUM FOR THE RECORD
SUBJECT:
Telephone Call from Mr. Bonner Cox of
Stanford Research Institute
1. On 20 June Bonner Cox of Stanford Research Institute
called stating that they had a problem out there on an overrun
and wondered what I could do in helping them out of it. He
stated that they had anticipated work on an $18, 000 contract
wherein ORD would transfer money to OTS. In anticipation of
that contract, they incurred an overrun and Cox now wondered
how he could go about handling that overrun. I indicated that
the best way was to treat it legally and wondered whether or not
they had alerted the Government to the fact that they were
approaching an overrun condition and, in fact, had expended
85% of their contract which was to run to 30 June. Cox stated
that the people who make those reports did not prepare them in
sufficient time for such flagging. He stated that they fully anti-
cipated the follow-on contract, that "Sid" told them to boom
ahead, and when I asked him if he thought that was direction to
proceed, he said, "No, but Sid had a strong feeling that the con-
tract would go. "
2. I asked if the contracting officer had given any direction
in that regard, and he replied in the negative. I then reiterated
that I had to treat this professionally and legally, and if they did
not receive proper direction as stated in their contract, and
further if they had failed to notify the Government of the situa-
tion with the contract overrun, then there was little I could do
for them and suggested that they contact the contracting officer
for details.
SG11
John N. McMahon
Director
Office of Technical Service
cc: C/CMG /
C/D&E
Approved For Release 2003/03/28 : CIA-RDP79-00999A000300030010-8