At this point Mr, Murray briefly left the meeting.
Mr, von Neumann discussed with Mr. Fields
and Colonel Starbird the probable advantages and disadvantages of selecting a new contractor, Mr, Fields
said that the Commission's decision on the budget
estimates would not prejudice the ultimate decision on
the course to be followed in expanding weapons development facilities, In response to a question by Mr, von
Neumann he said he believed that the proposed budget
would be sufficiently flexible to meet the requirements
of an emergency situation,
Colonel Starbird said that the DOD had not
indicated a preference for any single solution to the
problem of additional facilities but was anxious that
a solution be found,
At this point Mr, Murray re-entered the meeting,
In the course of a further discussion on the
desirability of selecting a new contractor for a second
facility, Mr. Murray said he believed that it would be
a serious mistake to rely on an expansion of Sandia
to meet the expected new requirements on schedule,
He also indicated that he thought it would be unwise
to make Sandia the operating contractor for a new
facility and observed that the advantages of competition had always been a serious consideration in
the Cemmission's consideration of such questions.
Mr, Libby said that these advantages inclined him
to favor selecting a second contractor,
It was agreed that in defending the budget
estimates before the Bureau of the Budget it would
be made clear that the course to be followed in
expanding weapons developmentfacilities had not yet
heen determined, The Commissioners indicated that
the recommendations of the staff on this question
shculd be submitted to the Commission as soon as possible,
- 666 -