Dr. James L. Liverman

-2-

Only preliminary discussions have been conducted relative to the
probable cost of acquisition, maintenance and operation of an LCU
under the above-d{scussed concept. One purpose of the request to
the Safeguard Systems Command was to permit such discussfons to be
opened; however, from the operating experfence of KMR, ft would
appear that maintenance and operation in accord with DOr. Barr's
utilization estimates might reasonably be forecast to cost approxi{mately $150K per year. Acquisition, under the concept set forth
above, should not be a reimbursable cost, although some refurbishing, modifying and outfitting costs may be anticipated. Tentatively
$50K seems a reasonable upper limit for these costs. In order to
further refine these estimates, detafled discussfons with the Army
will be required.
,
To enable NV to continue with the development of the required plan,
it is recommended that action be taken to request that the appropriate official of the Department of Defense assign to the Depart-

ment of the Army the above-described support missfon.

Pending such

assignment, an expedited action to permit authoritative staff discussfons to progress would be most helpful. A draft text of the

recommended action (letter) is enclosed.

Mahlon E. Gates

Manager
Enclosure:
Draft ltr to Office of the
Secretary of Defense

“Bcoh<W. B. Hills, Director, PASO, w/encl.
Dr. R. A. Conard, BNL, w/o encl.

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