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Yebruary 21, 1958

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MM) Mr. O. BE. Harvey

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BEST COPY AVAILABLE

Mourovia, California

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Mr.

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Subject; Subesntract 106

Aa the result of my letters of February 11 and 14 and various sonver-

sations, attached is a copy of the Los Angeles Ordinance District let-

ter. dated February 15, approvingthe loan of LOKI loading and processing equipment.

Apparently, the Ordnance Distetetl will. transfer:accountability: of the.
equipment to cur Subcontract with’ you.

This does uot seem proper to

me, in that it appears as though we need to replace only 26 LOKI units

to the Nevy, and you will be fabricating approximately 1,000 LOKT units
for NOL. Probably, the Ordnance Bistrict has executed transfer of

eccountability on the basis of our letters as they have not yet reeelved official requests from NOL. In view of the present request of
the Grdnanece District to borrow RFV loading and proceasing tooling,
perhaps, we had best not complicate the isaue at this time to preteat

ee transfer of LOKI tooling to accountability under our Subcontract
106.

I will appreciate it if you will review the NOL situation and advise
m8 as soon as you have a definite contract and all arrangements worked

cut to proceed with their loading.

At this time, I will request the

Ordmance District to transfer accountability to BOL rather than us. In
any event, please furnish me a complete listing of tooling received on
loans. It would appear that if less cor damage resulta to tooling, we
wili have to negotiate a pro rata distribution of costs between Subcon-

tract 108 and NOL.

Please advise if you disagree or have further suggestions.
Very truly yours,

c. L.

SLB: a

Attachsi

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Assistant Business Manager

L. A. Fitzgerald w/att.

W. B. Reynolds
E. C. Shute

K. Street

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w/att. 0. P. Webb

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