AlA OFFICERS

JA MES R. KERR, Chairman of the Board

HARVEY GAYLORD, Vice Cha irman of th e Board

KARL G . HARR, JR., Pres ident

V. J . ADDUCI , Senior Vice President

SA MUEL L. W RIGHT, Vice President and Secretary-Treasurer

C. R. LOWRY, Vice President

GEORGE F. COPSEY, Assistant Treasurer

EXECUTIVE COMMITTEE

JAMES R. KERR, A vco Corpora tion

HARVEY GAYLORD, T extron Inc.

KARL G . HARR, JR., A erospac e Indus tries Assoc i a tion

HARRY H. WETZEL, The Garrett Corpo ra tion

E. CLINTON TOWL, Grumman Aerospac e Corpo ra tion

ROY E. WENDAHL, Hughes Aircra ft Company

THOMAS V. JONES, Northrop Corporation

BOARD OF GOVERNORS

JAMES R. KERR , President, A vco C orpo ration

HA RVEY GAYLORD, Ex ec utive Vice President, T extr on I nc.

KARL G . HARR, JR., President, A erospace Indus tries Associ a tion of Americ a , Inc .

DR. R. D. O'NEAL, Pres ident, B endix A erospac e-Electron ics C om pan y, T he Be n d ix Co rpor ation WILLI A M M . ALLEN , Cha irman of th e Board, The Boeing Company AlA DWANE L. WALLACE, Cha irman , Cessn a Aircraft C o m pany GUY C. SHAFER, Vice President and Gro up Executive, C olt Ind u stri es , Inc ., ~ Chandler Eva ns Inc., Control Syste m s D i vision

HARRY H. WETZEL, President, The Garrett C o rpo ration

ROGER LEWIS, Pres ident, General Dynamics Corpo ration

J . S. PARKER , Vice Chai rman of the Board and Ch ief Exec uti ve Officer , G eneral Electric Company CONTENTS JAMES E. KNOTT, Mana ger, Plant Oper a tions, A llis on D ivision , G en e r al Motors C orporation 2 Message to the Membership C . B . McKEOWN, Pres ident, A erospac e & Defe n se P ro ducts, The B . F. G oodrich Comp an y

MORRIS B . JOBE, President, Goodyea r Aerosp ace Corpora tion 4 Aerospace Ope rations Service

E. CLINTON TOWL, Chairman, Grumma n A erosp ace Corpora tion 8 Aerospace Procure m e nt Service C . L . DAVIS, Executive Vice Pres ident, Ho n eyw e ll Inc . 12 A e rospac e Technica l Council ROY E . WENDAHL, Executive Vice President, Hughes Aircraft Company

JOHN B . JACKSON , President, Fe d e ra l Sys te m s Divisi on, IBM Corpora tion 18 International Service

CLYDE SKEEN , President, Ling-Temco-Vought, Inc. 20 Office of Public Affa irs

DANIEL J . HAUGHTON, Cha irman , Lockh eed Aircraft C orpo ra tion 22 Traffic Service J . B . MONTGOMERY, Presid ent, CCI Mar q u ar d t Corpora tion (The Mar qua r d t C o rpora tion ) 24 Tra ns port Ai rcraft Council T . G . POWNALL, President, A e rospace Group, M artin M arietta Corpor a tion

DAVID S . LEWIS, President, M c Donnell Douglas C orpora tion 26 Utility Airplane Cou ncil

GERALD J . LYNCH, Cha irman and President, M e n asco Manufa cturi ng C o. 28 Vertical Lift Aircraft Council J . L. ATWOOD , President and Chief Executive Officer , N orth American Rockwe ll Corpora tion 30 Re quests f o r P ropos a ls THO M A S V. J O NES , Cha i rman a nd President, Northro p Corporati on 31 O rg anizati o n an d Functions IRV IN G K . KESSLER , Executive Vice Presi d ent, D efense & Commer c i al Sys tems, R CA

W ILLI AM P. GWINN, C ha irm an, Un i te d A irc raf t Corporation 3 2 AlA M e mbershi p TO THE MEMBERSHIP ~

KARL G. HARR, JR .

2 In 1969 a decade of intensive effort, and was $29.2 billion compared to $31.5 billion. procedures and recommendations to im­ centuries of curiosity, culminated dramati­ In two important areas- exports and prove them which were made at the request cally in the landing of men on the moon non-aerospace sales- increases were reg­ of the Air Force. and their safe return to earth. istered in the same period. • Presentation of a detailed analysis of the Cost Principles of the Armed Services Pro­ For the aerospace industry this event • Aerospace shipments abroad increased curement Regulation with recommendations represented the most visible evidence to from $3 billion to $3.1 billion. Aerospace to clarify and improve the government-in­ date of its capability to achieve any na­ exports, a key element in maintaining the dustry relationship in this field. tional goal of high technology content. nation's favorable balance of trade, led all • Preparation of a "White Paper" on Inde­ Otherwise 1969 saw the industry in a other manufactured products in shipments pendent Research and Development which period of overall transition. As technologi­ to foreign countries. was issued as a report by the members of cal capability continued its sharp advance • Non-aerospace ·products and services in­ the Council of Defense and Space Industry declines occurred in several economic creased from $2.6 billion to $2.7 billion. Associations. areas. Comparisons between 1969 and These sales represent work by aerospace During the year, the industry viewed 1968 show the following: firms in such areas as air and water pollu­ favorably two actions aimed at strength­ • Sales declined from $29.5 billion to $27.1 tion control, urban transportation, power ening and improving the procurement proc­ billion. generation, water desalination and marine esses of the government. Congressional • Employment dropped from 1,418,000 to sciences. action established a Commission on Gov-: 1 ,355,000 persons. Two major organizational changes were • Sales to the Department of Defense ernmel'lt Procurement, and the Department made within the Association. At year's end, dropped to $16.2 billion compared with of Defense appointed a Blue Ribbon Panel members of the Utility Airplane Council to make recommendations toward improv­ $16.6 billion, largely due to a decline In formed a separate association, and three ing DoD acquisition policies and processes. aircraft sales. members of AlA resigned. They were There w_ere hundreds of separate actions • Space sales dropped to $3.2 billion from Beech Aircraft Corporation, Cessna Air­ $3.8 billion, principally due to the approach­ performed by the Association during the craft Company and Piper Aircraft Corpo­ ing completion of the hardware phase of year, and details of key actions are con­ ration. tained in this 1969 Annual Report. the Apollo program. The Procurement and Finance Committee • Commercial aerospace sales, principally Respectfully submitted, was reorganized into the Procurement and jet transports, declined from $6.4 billion Finance Council to meet"current and anti­ to $5.8 billion. This was a result of the phas­ cipated requirements in this area of activity. ing out of current transport models while Major projects included: production of the new generation of high­ capacity, wide-bodied jets was just getting • Completion of Phase Ill of the Weapon I underway. Systems Development Process. KARL G. HARR, JR. • Backlog at the end of the third quarter • An analysis of the Requests for Proposals President

3

AEROSPACE OPERATIONS SERVICE

The Aerospace Operations Service during AlA is participating in an effort to reduce AlA obtained a cancellation, by re­ 1969 was engaged in more than 100 proj­ the redundancy of research projects in interpretation, of an order from the Office ects to further the states of the various metal-working industries and to upgrade of the Joint Chiefs of Staff to the European arts involved in production, procurement, manufacturing oriented education courses. and Pacific Theatres which had denied subcontracting and quality assurance of Ways and means of attracting students to logistic support to the field service rep re­ aerospace end articles, systems and parts manufacturing careers are being studied. sentatives not under contract and charged and in the broad field of contractor sup­ to overhead. Accordingly, the policies port of these products after delivery to Quality Assurance established in 1966 governing the relation­ the customers. The Qual ity Assurance Systems Study ship between the DoD and contractors on Principal objectives are to develop issued in 1969 presented composite infor­ both direct and overhead type field service cooperatively improved methods of man­ mation on the responsibility assignments representatives remain unchanged. aging and monitoring major functional and personnel requirements and distribu­ NATO Symposium operations, keep abreast of new technolo­ tion of AlA member companies to control gies, materials and opportuniti es for ad­ the quality of their products. AlA, at the invitation of the DoD, partici­ vantageous use of computers, develop The report provides a comparative refer­ pated as a member of the U.S. delegation standards and specifications for aerospace ence guide by which managers in the in the Fourth NATO Symposium on Codifi­ procedures and production equipment and field of quality assurance may evaluate cation of Equipment held in London, Eng­ reduce costs. their departmenta l functions and objectives land. Each NATO member country reported against the composite report of similar on the status of its implementation of the departments of other companies. NATO-adopted codification program and It provides a statistical analysis, on a the problems encountered. percentage basis, of the organizational The multiple benefits and savings which The Aerospace Operations Service locations within the various company man­ can result from a cataloging program ap­ agements of all quality assurance functions. peared to be questionable to some NATO functions in widely diversified The results of this study demonstrate the members and the U.S. delegates were great amount of attention given by the called upon to explain and endorse the areas encompassing aerospace industry to functions which program. manufacturing, materiel assure the quality and integrity of highly NATO barriers to understanding include sophisticated equipment and systems. the differing stages of progress in the management, product support, work of cataloging and mechanization, the NASA/ AlA Quality Assurance size of the country, the volume of military quality assurance, service Quality managers from all National Aero­ equipment involved in the program, and publications and spare parts. nautics and Space Administration centers the financial support provided by each country to its manufacturers and political and headquarters and managers of major Operating through six committees, motivation. NASA programs discussed with AlA meth­ supervising numerous task groups, ods for continued improvement of the The symposium created a better under­ standing by the NATO nations of the atti­ government/contractor interface with the the Service endeavors to anticipate tude toward the U.S. Federal Cataloging objective of optimum quality management Program and a better understanding by and avoid, or solve industry effectiveness. AlA of the NATO problems which affect A principal subject pertained to th e and I or government problems. government/ contractor relationships. respective roles of NASA, prime contrac­ tors, subcontractors and suppliers in Computer Aided Manufacturing achieving and monitoring quality control. An AlA study group in 1969 demon­ Recurring problem areas requiring further strated that the new techn ology of com­ study were identified and assigned for puter graphics can be applied effectively action or discussion in future review within manufacturing operations. Process meetings. and tool planning, tool designing, and numerical control programming will be Field Service Support among the first functions to benefit. Com­ AlA maintained liaison with the DoD puter graphics can provide manufacturing and the military departments in order to with the mu ch-needed, real-time communi­ prevent or solve problems caused pri­ cation lin k with computers. marily by lack of understanding or mis­ Although computer software will be interpretation of the documents which costly and additional computer-type hard­ authorize the use of field service repre­ ware will be req uired, these conditions will sentatives. be more than offset by:

5 DR. RIC HARD K. WILSO N K ENN ETH B. GAY LEONARD T. BARD B. W. CLAWSON ARTHUR C. GILL. JR. RALPH W. EMERSON North American Rockwell North American Rockwell Westinghouse Electric McDonnell Douglas Beech Aircraft Corpora tion General Dynamics Corporation Corporation Corp orati on Corporation Chairman, Ser vice Corporation Chairmen. Manufacturing Chairman, Materiel Chairman, Produc t Support Ch airman, Qua lity Publica tions Committee Chairman, Spa re Parts Committee Management Committe e Committee Assurance Committee Committee

• Substantial reduction in manufacturing been reduced by rewriting the existing 36 1969 wh en th e percentag e increased flow time. questions in th e guidelines to 21 . abruptly. By November 1969 th e cost was • Extended use of computers. • Participated in the government/industry 12.8 per cent higher than th e 1965 baseline. • More effective use of technical skills. review and recommendations on House • General improvement in the quality of Report No. 1975 iss ued by the House Manufacturing Symposia planning, tool designing, and numerical Se lect Comm ittee on Small Business. The Three AlA manufacturing symposiums control programming. committee had studied the problems of were held in 1969. They were: • Cost savings through greater applica­ small businesses in order to propose legis­ • High Modulus Composites Manufactur­ tion and control of standardized methods lation to strength_en their position in gov­ ing Methods. and design features. ernment procurements. With AlA's partici­ • Advancements Pertinent to Manufactur­ As a result of the findings of the in itial pation, the government/industry committee ing Equipment and Re lated Production study, a second phase study group has endorsed four of the proposals and recom­ Methods. now been formed to coordinate design mended against three. • Packaging Engineering. engineering and manufacturing engineering More than 200 people attended these functions into a continuous computerized High Speed Twist Drills symposiums and the discussions identified package through the use of graphics. Reduced drilling costs will result from topics requiring industry study and resulted an AlA standardization project which was in the initiation of five new projects. National Aerospace Standards completed in 1969 after three years of AlA in 1969 issued ten new or revised study. A new drill standard was prepared Numerically Controlled Equipment NAS specifications in the manfacturing which provides improved and consolidated A list of 2,017 numerically controlled area. The aerospace industry buys $300 point geometries, tightened toleran ces and profile milling equipments operated in 80 million worth of machine tools annually better sel ection for working the various aerospace plants was published by AlA in usi ng these spec ifications. It is conserva­ exotic hard materials used in modern 1<969. This list provides information relating tively estimated that savings of about $7.5 aircraft. to potential production capabilities and million annnually are realized through utili­ During tests of th e new standard con­ facilitates interchange of non-proprietary zation of these standards. ducted at seven member companies under type maintenance and operating informa­ uniform testing procedures with nine differ­ tion to reduce redundant effort. This will Small Business Liaison ent work materi als, it was found that th e assist in avoiding production bottlenecks split point geometry and tighter tolerances For many years AlA has maintained liai­ and reduce costs. son with the Small Business Administration, produced more unifo rm holes and resu lted DoD, NASA an d the Departm ent of Com­ in extended drill life averaging 200 per Data Exchange cent. This is particularl y important to aero­ merce in anticipatin g and so lving prob­ A dictionary of preferred definitions of space compani es whi ch may drill as many lems involving procurements from small data elements to be used in failure report­ as 33 million holes a month. Results in business firms. ing between the world's airlines and their titanium tests were particularly good. During 1969, AlA: manufacturing suppliers will be issued dur­ • Pa rticipated in several nati onal and ing 1970 as the first product of AlA's work Cost and Leadtime regional small bu siness conferences on with the Air Transport Association, the quality control, scheduling, truth in neg o­ Al A sin ce 1965 has made periodic sur­ Association International des Constructeurs tiations, value engineerin g and technology veys on cost and procurement leadtime of de Material Aerospatial (AICMA) and the utilization to assist small business concerns 41 basic componen ts used in aerospace International Air Transport Association. in understanding government specifications, man ufacturing. During 1969 three such This dictionary is expected to become a policies, and requirements. surveys were conducted. significant tool for initiating design im­ • Recognized t he shortcomings experi­ Th e average leadtime, whi ch started at provements to existing equipment as well enced in gu ideli nes fo r small business 9.8 weeks in 1965, rose to a high of 19.6 as providing criteria for future design subcontracting programs adopted in 1968 weeks in January 1967. Leadtime has im­ development and an improved base for by DoD and SBA and drafted prop0sed proved contin uously and in November 1969 administration of warranty requirements. new guideli nes. Their adoption is believed was down to 13.4 weeks. The cost of th e The first step in this activity, a data sur­ to be highly probable. Redundancy has same 41 items rose slowly until January vey questi onn aire outlining 36 basic data

6 parameters, was submitted to 76 of the Spare Parts Phased Provisioning ability standards will increase technical member airlines comprising ATA and lATA. manual preparation costs significantly. It AlA participated in an ad hoc panel of Responses received from 57 airlines pro­ also will lengthen the period between representatives from the government and duced nearly 57 different definitions for information cut-off dates and delivery, industry trade groups to provide a greatly each of the basic data parameters. This expanded revision of the DoD spare parts t~ereby lengthening delivery schedules mass of information Is n·ow in the process phased provisioning procedures in 1970. without achi~ving significant improvements of being evaluated and consolidated by These procedures were initially devel­ in technical manual readability. several task .groups in which the airlines oped during 1966 under AlA leadership to These findings were presented to vari­ and the manufacturers are participating. provide economies through the early pro­ ous Army groups as part of a program curement of specific long-lead time items that AlA has been conducting to refute Spare Parts in quantity lots as well as by deferring claims concerning the lack of readability A strong AlA position presented in 1969 costly machining and processing until the of technical manuals made by government representatives. They cl~imed that a sig­ in opposition to an Air Force proposal for anticipated requirements were confirmed nificant number of technical manuals pre­ obtaining firm prices for spare parts before through operational use. pared by contractors are above the com­ the design of the parts was completed or Among the objectives to be achiev_ed by prehension level of the users. identified by part number was a significant the projected revision will be more pro­ While opposing contractual imposition of factor in the Bureau of the Budget defer­ cedural Instructions to both the contractor this amendment, AlA ·has proposed an ring action on approval and further imple­ and the provisioning activity on the proc­ approach to this problem which was devel­ mentation of the procedure. esses required to accomplish phased pro­ oped jointly with variows Army elements This proposed pricing approach, which visioning. In addition, procedural require­ during 1967. is being service tested In conjunction with ments will be modified so as not to restrict This approach called for the establish­ the Air Force implementation of total pack­ buffer stock considerations to limited pro­ ment of guidelines which prescribed the age procurement programs for certain duction periods covered by annual con­ use of short, direct sentences, minimizing aerospace systems, prompted an AlA study tracts. When developed, the system will the use of multi-syllable words and limit­ to determine Its feasibility. Designated the provide a means of establishing, schedul­ ing technical terms to those which should Indentured Parts Price List (IPPL) concept, ing and managing buffer stock throughout be understandable to users who are high it Is based on the principle that the sum the phased provisioning period. of all parts prices shall not exceed the school graduates. This approach is not a total price of the equipment of which they Parts Provisioning contractual requirement, but many con­ tractors are using it. are a part without regard to any proble!Tis AlA participation in an Air Force ef­ AlA is planning further efforts for 1970 that may occur in fabricating, handling, fort to streamline Its major spare parts to acquaint a wider range of government storing and delivering these parts as selection and ordering procedures has representatives with this guideline ap­ spares. resulted In the development of a single proach to readability while at the same A review of experiences resulting from consolidated provisioning Instruction which time obtaining increased acceptance from programs or proposals for programs utiliz­ is expected to provide both the Air Force contractors that they will make use of it. ing the IPPL, together with a comparison and industry with a more simplified method of current contractual spares pricing pro­ of managing supply support projects. Repair Contracts cedures with projected applications of the This single provisioning document will proposed IPPL concept, led to the AlA replace four separate and redundant pro­ A proposed outline for the structure of contention that this concept Is contract­ visioning instructions currently In use. It the statement of work section of rep~ir ually impractical. It Ignores cost experi­ has been developed with the objective of contracts was presented by AlA to DoD ence as It evolves in the performance of providing flexibility to the government In during 1969 as the first step In implement­ the contract. selecting minimum essential data to fit ing its 1968 report on corrective measures Furthermore, Its initial administrative each specific procuFement while, at the to improve contract repair performance cost is high due to the requirement for same time, providing the contractor with related to repair turn-around times. pricing every Item on all contract end clear, precise Instructions on government This effort reflects consideration of the items which, in the case of airframe com­ requirements for documentation, data and wide proliferation of the types of repair ponents, could require pricing on thou­ spare/repair parts. In addition, It also contracts In existence and .the fact that sands of items which will never be sold or provides the contractor with an action contractual requirements differ consider­ required as spare parts. For example, the plan with time frames when each phase ably within a given military service as well spare parts history of an aircraft currently of the provisioning process must be as among the services. Although It was In the Defense inventory showed that accomplished. recognized that some flexibility Is neces­ 80,000 Items were reviewed for provision­ Following a period of review and co­ sary to permit adaption to unique circum­ Ing, with 13,000 recommended and priced ordination, mutual agreement on this docu­ stances, it is also essential to systemize the for spares procurement by the contractor. ment was reached during 1969 In almost scope of work requirements to a greater However, only 8,000 were purchased by all areas with the exception of the incen­ extent than has been done previously. the customer. Under the IPPL procedure tive/penalty section: However, resolution The Air Force has responded to this all of the 80,000 items would have been efforts for that section have been handled action by utilizing portions of the proposed priced and the pricing efforts for 67,000 as a separate project. AlA work statement outline in service tests would have caused a wasteful expen­ of commercial overhaul/repair contracts Technical Manuals diture of manpower and time. The Impact with a number of aerospace contractors. of design changes and redundant repricing According to an AlA evaluation report The results of these tests are expected to on these Items would also compound the issued In 1969, an Army specification be available In 1970, and AlA Is contin­ problem. amendment establishing contractual read- uing Its coordination efforts.

7 AEROSPACE PROCUREMENT SERVICE

The Aerospace Procurement Service supports the functions of finance, accounting, cpntract administration, legal activities pertaining to procurement, patents, industrial relations, industrial security, government reports and manpower utilization. One Council and three principal committees provide a medium for conducting evaluations and resolving problems of mutual concern to government and industry.

B The Aerospace Procurement Service in 1969 largely was involved in areas con­ cerned with the proposed changes and additions to government policies and pro­ cedures relating to the business activities of aerospace companies.

Product Liability

One of the most serious problems cur­ rently confronting the aircraft manufactur­ ing industry is the lack of insurance ca­ pacity, at economically feasible rates, to cover product liability, particularly as to the potential liabilities to commercial pas­ sengers. This problem will increase in magnitude w ith the projected increased use of commercial air transportation. AlA is advancing a program under w hich claims for the personal injury o r death of domestic commercial air pas­ sengers wi ll be promptly and equitably settled. In addition to the speedy settle­ ment of suc h claims and the avoidance of protracted litigation and attendant ex­ penses, effectuation of the program should stabilize insurance premiums and make available adequate insurance coverage. Under the Warsaw Convention, air car­ riers have limited liability to passengers for death or bodily injury occurring in the course of international air transportation. This limitation of li ability, however, does not extend to the aircraft manufacturing industry. A revision to the Warsaw Con­ vention is contemplated and AlA is actively participating in such activity to seek the extension to m anufacturers in the aircraft industry.

Manpower Utilization Analysis Group

The Manpower Utilization Analysis Group made an inven tory of aerospace industry m anpower by fu nctio nal c lassifications. This provides the management of par­ ticipating companies with information about the number of people in various functions related to comparative base d ata. This information is especially useful in planning and manpower monitoring.

9 Indemnification it is commercial practice to disclaim such have in the composite brought about a Present statutes and regulations cover­ liability or where by the nature of the substantial increase in contractors' liability. Ing the indemnification of government product it would 'be inequitable or costly The study will set forth each of these contractors for extra hazardous risks in­ to require contractors to assume the risk. developments, wherever possible quantify volved in or catastrophic losses which the risk and compare it to commercial Cost/Schedule Control System Criteria might result from the performance of such practice and provide an overview of the contracts do not afford adequate protec­ AlA continued to work through the effect. The completed study will provide tion for either the public or the contractor. Council of Defense and Space Industry a better perspective of these matters for For many years, industry has sought Associations on the Cost/Schedule Control both the government and industry and a an appropriate solution to the problem. System Criteria (C/SCSC) toward the base for future development of policy. Because of the direct impact of this prob­ objective of standard requirements in lem on the government procurement proc­ terms of results rather than methods. A Contract Cost Principles ess, AlA appeared before the Military presentation was made to key officials of Fifteen proposed revisions to the Cost Operations Subcommittee on HR 474 to the Office of the Secretary of Defense in Principles of the ASPR were received establish a Commission on Government regard to the accounting of applied direct from DoD for review and comment in Procur~ment to present testimony provid­ costs. However, that office decided not 1969. Because of the continued "piece­ ing the basis for the consideration and to make any substantial change to its meal" conversion of the cost principles the proposal of legislation to solve the Instruction. to rigid rules for cost disallowance, a problem by such Commission, or the in­ CODSIA recommendations were also de­ position paper on the Cost Principles of dependent introduction of appropriate veloped wtih regard to a Cost Performance the Armed Services Procurement Regula­ legislation to this end. Report designed to support C/SCSC, Sys­ tion was published by AlA. The report issued by the subcommittee tems Acquisition Reports for DoD, Con­ This paper, which has received wide on the hearings suggests, as a problem gress and System Program Office activi­ attention, presents a comprehensive his­ appropriate for study by the Commission, ties. These recommendations were pre­ tory of the cost principles and relates how the financial risks of catastrophic acci­ sented first to the DoD with the result the cost principles have become incom­ dents arising from the performance of that many issues were resolved. The re­ patible with sound business practices; government contracts. maining issues have since been presented contribute to the deterioration in the at a hearing before the Bureau of the buyer-seller· relationship, and are unneces­ Warranties Budget and a generally practical reporting sarily increasing costs for the government AlA during 1969 developed a compre­ system has been adopted. as well as industry. The problems con­ hensive analysis of the variations that sidered in the paper are: arbitrary quan­ DoD/NASA Incentive Contracting Guide developed in Department of Defense con­ tified limitations; superimposed or "shifted" tractual requirements dealing with express The DoD/NASA Incentive Contracting cost principles; vague terminology; dis­ and implied warranties, consequential Guide was published in 1969. Publication allowing unmentioned costs; reduced role damages and related clauses. followed ·eighteen months of intensive of the contracting officer; constraint of Some DoD elements were departing efforts by AlA through CODSIA in review­ the Contract Appeals Board; and cost from the long standing policy of recog.:. ing of chapters as drafted by DoD and control through disallowance. The paper nizing the state-of-the-art factors and the NASA representatives. recommends that the cost .principles be costs of broad warranties involved in mili­ This effort permitted submission of in­ restored to their original intent of cost tary products and in some cases specify­ dustry suggestions and recommendations determination. ing contract provisions more stringent than "before the fact" and provided for thor­ Uniform Cost Accounting Standards in traditional commercial practice. ough discussions of each recommendation The AlA analysis was provided to the with government representatives. A large An amendment to the Defense Produc­ DoD with a request that a standard policy percentage of industry suggestions were tion Act directed the Comptroller General be established. The Office of the Secre­ accepted. Others were rejected because to study the feasibility of uniform cost tary of Defense has indicated that the the suggestions required changes or addi­ accounting standards to be applied to all urgency and importance of this matter tions to the ASPR. negotiated prime contract and subcontract are recognized . AlA now plans through CODSIA to for­ defense procurements of $1 00,000 or more. Consideration is being given to adopt­ mulate proposed recommendations for AlA participated with CODSIA in meet­ ing policies which would accomplish these changes in the ASPR coverage concerning ings with General Accounting Office repre­ objectives: incentive contracting which will be of sentatives concerned with this subject and Provide for the use of warranties similar benefit to DoD as well as industry. in providing the GAO with industry views. to those used in commercial business for AlA also reviewed and responded to a Contract Risk Analysis the purchase of commercial items. GAO request for comments on a draft of Exclude warranties from early stages of A study of the increased risk assumed Its report to the Congress. research and development, cases where by contractors in recent years, apart from AlA stated that the need for uniform the state-of-the-art is being advanced, and the technical risks dealt with in the cost accounting standards has not been where, in these or similar situations, a Weapon Systems Development Study, was demonstrated; that such standards would cost reimbursement type contract is used. initiated in 1969. It had become apparent be impractical even if possible; that no Recognize the cost of the deferred lia­ that there have been myriad changes in savings would be realized but rather there bility assumed by contractors when war­ gpvernment procurement policies, proce­ would be increased costs to the govern­ ranties are used. dures and contract provisions which, ment, and concluded by urging greater Specifically relieve contractors of lia­ coupled with the increased complexity and objectivity in review and report to the bility for consequential damages where technical uncertainty in military hardware, Congress.

10 Military Standard Contract Administration equities. Continued use of the clauses as Procedures (MILSCAP) well as their implementation in ASPR is presently before the DoD. The Department of Defense program Under newly issued regulations, the known as MILSCAP is designed to attain Atomic Energy Commission acquires cer­ a greater degree of simplification, stand­ tain rights in inventions made in the course ardization, and automation in the process­ of a contractor's independent research and ing of procurement, contract administra­ development. AlA has requested AEC to tion, and related logistics and financial review this practice, pointing out its in­ data. The system is scheduled to become equities and adverse impact upon con­ WILLIAM L. CLARK GEORGE H. SCOTT fully operational in 1970. tractors' independent research and devel­ North American Rockwell Ling-Temco-Vought AlA has closely monitored the military Corporation Incorporated opment programs. Chairman, Procurement and service actions to implement the system. Chairman, Industrial AlA through CODSIA presented exten­ Finance Committee Relations Committee A presentation made to the Assets Man­ sive comments on a proposed revision of agement Systems Advisory Committee ASPR data clauses dealing with technical summarized experiences with the Defense data furnished by contractors with "limited Contract Administration Services, Air rights" to the government, and more Force, Army and Navy implementing di­ specifically, the legend which appears on rectives, and also outlined the contractor such data and sets forth the limited rights interface problems. Highlighted were non­ acquired by the government. In general, consistent applications and lack of fund­ the revision as issued contains a new ing to cover costs incurred by contractors legend that is an improvement, but which in accommodating some of the military is susceptible of misinterpretation. AlA service implementation plans. CHARLES A. MAHAN ANDREW L. BAIN has requested the DoD to issue instruc­ Un ited Aircraft Corporation Singer-General Precision, AlA has also met with Navy represen­ tions assuring the proper interpretation Chairman, Industrial Inc. tatives and obtained a number of clarifi­ Security Committee Chairman, Patent Committee of the legend so that a contractor's limited cations which should help to lessen the rights data will not be used by the govern­ impact on contractors. ment for certain procurement purposes. the guidelines, AlA objected to those regu­ lations which increase the cost of doing Government Property In connection with "limited rights" data, AlA has also requested DoD to issue a business and the difficulty of administra­ AlA has continued to monitor DoD and directive under which such data would tive compliance where the benefit to be military service department policy matters be disclosed within the government only gained is not proportionate to these in­ regarding the use, control, and accounting to those having a "need-to-know." creased expenses. for government property in the hands of AlA commented specifically on inclusion contractors. Distinguished Service Citation of women's colleges in recruiting itinera­ Through exchanges of views with DoD AlA received the Distinguished Service ries, advertising for help in women's pub­ officials, AlA has continued to express Citation, the highest award given by the lications, making jobs available to women industry's arguments against proposed Department of Defense, for its support and on a part-time basis, equal physical fa­ ASPR language which would make the assistance to national civil defense pre­ cilities including restroom lounges for all contractor responsible for loss or damage paredness. In making the presentation, employees, federal and state limitations to government property, should the con­ Virgil L. Couch, Assistant Director of Civil on overtime for women, proportionate mix tractor fail to maintain an approved prop­ Defense (Industrial Preparedness), stated: of women and men in training programs, erty control system. and prohibition of the compliance officer "The Aerospace Industries Association Another subject upon which AlA has of America has provided outstanding sup­ from discussing possible violations with continued activities is the Air Force five employers. port and assistance in achieving many year phase-out program which DoD indi­ of the goals of national civil defense pre­ Security Manual Changes cates may be adopted . paredness. The Association was one of Both the Office of Industrial Security Patents and Data the first national organizations to provide and the Office of the Directorate for Se­ such leadership and cooperation. A concept issued by DoD would have curity Policy in 1969 submitted proposed " Through their national officers and required contractors to grant licenses of changes to the Industrial Security Manual. through especially appointed committees, their proprietary technology (patents and AlA through CODSIA reviewed and com­ the Association has maintained constant technical data), at reasonable royalties mented on the proposed changes covering liaison with national defense planners and determined by the government, for the clarification of residence requirements per­ has provided information and necessary performance of follow-on production con­ taining to immigrant aliens, repaired and tracts by another contractor. AlA par­ guidance to members and others through­ drilled security cabinets, reproductions of ticipated in the development of a CODSIA out the industry on how to prepare for Top Secret and Secret material originated position paper on the concept which pro­ civil defense emergencies." by AEC, shredders, overwriting discs and vided reasons for rejecting the concept as drums, strongroom and closed area cri­ OFCC Guidelines unsound. It is understood that the DoD will teria, temporary help supplier personnel, not implement the concept. The Office of Federal Contract Compli­ visitor control procedure and administra­ Acting through CODSIA, AlA objected to ance in 1969 proposed interpretations and tive termination of personnel security the clauses, pointing out their adverse guidelines for preventing sex discrimination clearances. Comments on the proposed impact on the development of new or to be followed by government contractors. changes were directed toward better se­ improved products, as well as their in- While supporting the intended purpose of curity with fewer and simpler controls.

11

AEROSPACE TECHNICAL COUNCIL

The Aerospace Technical Council in 1969 Weapon Systems Development Studies continued its efforts to resolve mutual Continuing to the next phase of a study government/industry problems. The Coun­ initiated in 1968, AlA assessed and made cil's three divisions and 12 working com­ additional recommendations to improve the mittees have been engaged in numerous process and reduce mutual government/ activities related to government policies, industry problems associated with the procedures, and actions which broadly "Essential Technical Steps and Related affect the technical side of the industry. Uncertainties in DoD Weapon Systems Effective channels of communication Development." have been maintained between AlA and Focusing on policies and development senior government technical management implementation procedures, the problem officials. The objectives have been to addressed in Phase Ill of the study was exchange views on problem areas which the long-term commitments both govern­ have significant impact on the aerospace ment and industry make without either the industry. Productive dialogue covered such requisite technical information or without subjects as the structuring of major weapon regard to the varying degree of uncertainty system programs when engineering devel­ in the technical information that is avail­ opment is approached and entered, in­ able at the time of these commitments. creased efficiency with management sys­ With this problem statement, the objective tems, the purpose of and approach to new was to determine what information is neces­ management techniques such as milestone sary and reliably available in order to programming, and the application of make meaningful decisions in the weapon requirements rather than detailed proce­ systems development process. dures in contracts. During the study, actual as compared to Management Systems Control planned availability of valid data, use of A high level of effort was continued dur­ prototypes, the effect of encountering ing 1969 in support of the DoD-CODSIA "unknown unknowns." the competitive proc­ Management Systems Control Program, ess, policy di rectives, the effectiveness of now three years underway. This includes risk assessments, the timing of fi xed price issuance of DPC-70 which sets forth procurement and th e elements of the devel­ requirements for use of management sys­ opment process were assessed for their tems in contracts, issuance of DoD Manual effects on commitments, requisite technical 7000.6 which lists all management systems, information, and the varying degree of and initiation of a review and analysis of uncertainty of technical information. all financial management systems. Based on this assessment, the following Considerable slippage of critical tasks conclusions were made: the DoD Policy to be performed was experienced. Further, Directive (3200.9), that initiates Engineer­ a "moratorium" on the control feature of ing Development, is a limited option devel­ DoD Instruction 7000.6, th e new DoD policy opment strategy; contractors could make for controlling the development of new and significant contributions to th e preliminary revised documents, was issued during the program RFP's including the work state­ year. As a result, new management systems ment; qualified industry sources could documents in 1969 continued to display make a significant contribution to a more conservative statement of un certainties, The Aerospace Technical Council characteristics the program was initiated to prevent- elimination of detailed proce­ given the proper competitive environment. is the industry's top level technical dures and duplication of management sys­ Five recommendations were made and tems requirements. presented to DoD to reduce the problem advisory body through which At year's end, plans were also underway areas. Key points are: 'broad technical and management to initiate all remaining Review/ Analysis • Guidelines should be issued for the DoD Task Groups which are to eliminate dupli­ Directive that initiates engineering devel­ problems affecting both cate and unnecessary management systems opment which expands on the concept of program tailoring so that greater program government and industry are from the current inventory of more than 600 and identify those to be authorized for flexibility can be fully exploited. reviewed and solutions sought. use on future contracts. • A supplement should be issued to the

13 WILLIS M . HAWKINS ERLE MARTIN JAMES N. LEW FRED W. GARRY Lockheed Aircraft United Aircraft Corporation Beech Aircraft Corporation General Electric Company Corporation Chairman, Systems Chairman, Airworthiness Chairman, Technica l Ch airman, Technical Engineering Division Requirements Division Specifications Division Management Policy Group

J . A. BRO.DY CHARLES E. VARNER HAROLD W. ZIPP McDonnell Douglas Lockheed Aircraft Th e Boeing Co mpany Corporation Corporation Chairman, Standardization Chairman, Technical Ch airman, Rotorcralt Management Policy Group Contract Requirements Airworthiness Requirements Committee Committee

FRANKLYN B. COLE, JR . CHESTER A. REMBLESK E S. K. MAGEE Lockheed Aircraft Beech Aircraft Corporation RCA Corporation Chairman, Small Aircraft Ch airman, Electronic Chairman, Environmental Airworthiness Requirements Systems Committee Testing Committee Committee

G. C. MARTIN The Boeing Company Chairman, Aerospace Technical Co unc il

WILLIAM D. THOMPSON E. D. SHANNON PHILIP N. BRIGHT Cessna Aircraft Company General Dyna mics General Motors Corporation Chairman, Flight Testing Corporation Ch airman, Materials and Committee Chairman, Transport Structures Committee Airworthiness Requirements Committee

c... HARRY KIMEL ROBERT B. TOTH General Electric Company Martin Marietta Corporation Cha irman, Reliability Ch airman, National Committee Aerospace Standards Committee

F. B. BRADLEY M. C. HEMSWORTH RUDE STEINBERGER North American Rockwell General Electric Company Hercules Incorpora ted Corporation Chairman, Air-Breathing Chairman. Rocket Propulsion Chairman, Maintainability Propulsion Committee Committee Commiltee 14 DoD Directive for Proposal Evaluation and the DoD effort aimed at tri-service systems was based upon the lack of a demonstrated Source Selection to encourage, in appro­ engineering requirements. need for such a system and the attendant priate cases, the evaluation by qualified AlA is continuing to work for more­ increased costs. industry sources of the RFP. acceptable government requirements for Computer Aided Design • More use of prototypes should be consid­ the contractor's systems engineering man­ ered early in development, as appropriate. agement process through direct discus­ As a part of the DoD program to acceler­ • A policy should be developed requiring sions with DoD and the services. The ate the application of computer techniques DoD/industry application_ of searching, objective of this continuing effort is to to the design, production, and testing of thorough and objective risk assessment. assure that trl-service requirements will defense sysems, DoD prepared a proposed • Changes should be made in procurement contain realistic criteria for cost effective program plan for coordinating the develop­ practices beneficial to the competitive en­ contractual application, permit maximum ment and implementation of computer vironment encouraging early identification contractor Initiative and prerogative in the aided design and numerical contro1 manu- of technical uncertainties. engineering of the system design, and pro­ facturing processes. · In support of these recommendations, vide appropriate visibility of technical per­ AlA led a review of the program -plan several approaches were developed. These formance to permit adequate government which acknowledged acute awareness of · include: management of the program without undue the importance of this emerging tech­ • A sample set of program alternatives for contractual costs. nology, and agreement with the need for DoD Directive and guidelines for the development of such a plan. However, 3200.9 Configuration Management their further expansion and use. the necessity for a careful and orderly • A proposed supplement to DoD Directive AlA worked with the services in Imple­ approach to the development of the plan 4105.62 and a procedure for handling a menting a major project to assist DoD in to exploit properly the potential in this · review of the RFP. the development of the family of trl-servlce field was emphasized. • A discussion on prototypes and how requirements documEUltS which define the AlA recommended that the DoD study its uncertainty can be reduced by their appro­ DoD configuration management system. A entire defense procurement policy as it will priate use In the phases of development. follow-on project conducted In 1969 had be affected by computer aided design and • A general consideration of when and the objective of assisting DoD in the numerical control technology. The recom­ where risk assessments are applicable and standardization of configuration manage­ mendation also emphasized that new and the inhibiting factors that tend to reduce ment data elements. Improved techniques which affect every the effectiveness of risk assessment. The development by NASA of a configu­ phase of the cycle of conceptual, design, • A set of detailed recommendations con­ ration management policy directive and manufacture, test-operate and support are cerning improvement of the competitive guidelines manual also was monitored, and in a preliminary state of evolution. environment. NASA was urged to make its configuration The DoD plan implies standardization of management requirements consistent with the complete system procurement cycle Systems Engineering/Technical those of the DoD system In order to achieve with the attendant danger of penalizing Performance Measurement uniformity of application. both ·the goveroment and industry by in­ AlA recognized the potential impact of creasing costs and leadtime and by stifling Data Management the systems engineering standard pro­ innovative drive. The position also recom­ posed by the Air Force in 1968 and at that In a continuing effort to work with DoD in mended that DoD should study develop­ time initiated a major effort to provide the formulation of improved government ments in this field to determine the most appropriate comments to be used in the policies and requirements for the manage­ advantageous role for the government to preparation of a standard which would ment of technical data, several discussions play. The program plan also should clearly have tri-service applicability. were held at OSD staff level and with the provide for industry to maintain its own prerogatives and competitive position in The thrust of the recommendations was individual military services concerning the that the document should specify "what" Implementation of policies contained In the the methods and procedures used In the the contractor's systems engineering man­ new DoD Instruction 501 0.12. cycle of design, manufacture and test. agement system should accomplish but not The objective has been to reduce the Standardization Management "how" the contractor should do the job. proliferation and volume of contractual After review by CODSIA, an Air Force requirements for technical data. The devel­ AlA has worked extensively with the trial standard on systems engineering man­ opment of a trl-servlce Authorized Data DoD Office of technical Data, Standardiza­ agement was published in 1969. Though It List has been followed closely and con­ tion Policy and Quality Assurance to de­ is much more acceptable than its preced· structive suggestions have been made to velop an appropriate charter for a Joint lng draft, this standard still contains help convert existing Authorized Data Lists Military/Industry Standardization Manage­ requirements which are too broad in scope of the three services to a consolidated list ment Advisory Committee. and depth of application. which will permit DoD to acquire minimum This Office has requested top-level DoD This Air Force standard has DoD ap­ necessary technical data. approval of the charter to establish this proval for trial application only and is being Several submissions were made to DoD advtsory committee to the Department of tailored to three major Air Force programs concerning the requirements for _reprocure­ Defense Technical Data and Standardiza­ to gain test experience applicable to the ment data packages, the deferred ordering tion Policy Council. The Advisory Com­ further development of a tri-servlce or delivery of data, minimizing RFP data mittee wiU advise DoD on overall visibility standard. requirements and the quality of technical and management of part, material, process Development by the Navy of systems data. Strong opposition was taken to a standardization efforts within DoD and use effectiveness techniques, and by the Army proposed requirement for a quality assur­ the full standardization capabilities of In­ of a systems englneerinq manual for in­ ance system for technical data similar to dustry In the development and maintenance ternal DoD use are additional portions of that required for hardware. This position of these standards.

15 In the interest of a more efficient industry implement this policy change. Detailed de­ materials, finishes for space vehicles, and effort, AlA has also engaged in discussions vice specifications are being drafted and internal sound levels of military aircraft. with the Society of Automotive Engineers are expected to be issued in 1970. and Electronic Industries Association on These hardware specifications will pro­ Metric System Study ways to improve standardization efforts vide the needed and timely uniform design Responsibility for the three-year national without fostering~ wasteful duplication of criteria . and visibility of those microelec­ study, authorized by Congress, of the effort. In addition, organization and operat­ tronic devices experiencing broad accept­ advantages and disadvantages of the in­ ing procedures for AlA's participation in ance for use in the new generation of creased use of the metric system in the international standardization activities have major weapon systems now evolving. Thus, United States is assigned to the National been drafted. devices having the benefit of large com­ Bureau of Standards, Department of Com­ mercial volume and continuity of produc­ Electronic Design Uniformity merce. The first year has been devoted tion can be exploited by military usage principally to planning for a series of na­ Implementation of tri-service use of the with proper specifications to ensure that tional hearings, to be held during 1970. 63 design practice standards developed in by design and verification tests they can A corollary one-year, in-house study by Phase I of this program, in lieu of over 500 meet the performance, environmental the Department of Defense, in support of separate service requirements which they stress and reliability requirements. the national study, will have broader im­ , superseded, accrued an estimated $33 mil­ National Aerospace Standards lion cost avoidance during 1969. plications for the aerospace industry. The A two-year Phase II program initiated in The National Aerospace Standards are DoD study will measure the impact of the J 1969, has revised 30 of the original 63 voluntary industry-developed documents metric system use on its capability to per­ standards to keep them viable and up to covering such aerospace hardware as form assigned missions. date with the rapidly changing electronic fasteners, fittings, electrical items, aero­ A Council project group has been estab­ technology. In addition, 11 new standards space materials, packaging materials and lished to provide an industry focal point are scheduled to be released in 1970. machine tools. for review of the progress and thrust of These include microelectronics, environ­ Typical of the 41 new standards issued the national study, contact with the Depart­ ment of Commerce and other government mental requirements, corrosion control, in 1969 include: departments engaged in the study, and dissimilar metals, readout devices and • Completion of the series of bolt standards assistance to members of the industry in grounding. These new standards will im­ and specifications utilizing the new "tri­ the conduct of their own analyses. prove the cost effectiveness of design by wing" recess. These standards will be replacing over 100 conflicting and dupli­ used on all the new wide-bodied jet trans­ Noise Abatement cating design practices by 11 tri-service ports, and will effect substantial savings standard practices. on stocking, tools and replacement. One Intensive efforts by AlA's special ad hoc airline has estimated a reduction of 60 group has resulted in improvements to the Environmental Test Procedures percent in its bolt inventory from this proposed new rule establishing noise stand­ AlA worked with the military services to standardization action. ards for transport aircraft type certifica­ revise and expand the test methods for • A specification and standard for wire tion. While the current generation of wide­ aerospace equipment to meet environmental termination interconnecting devices to meet bodied jets can be certificated, growth ver­ demands. Extensive revisions were made critical environmental requirements of sions of these aircraft may encounter diffi­ covering acceleration, vibration, acoustical space. These devices have functioned suc­ culty. Efforts are being made to effect noise, shock and space simulation. cessfully in flights to the moon and back. change that will allow the development of A parallel effort is the standardization of • A specification for a numerically con­ economical aircraft while minimizing noise testing requirements in equipment specifi­ trolled milling machine covering manu­ disturbances in the vicinity of airports. cations, and the elimination of the many facturing, performance, inspection and AlA is participating in a new FAA/indus­ varying requirements now contained in procurement requirements. try task force to develop noise criteria for many individual specifications. A policy the certification of short take-off and land­ Structural Design Criteria statement has been approved that MIL­ ing (STOL) aircraft. It is most important STD-810 shall be maintained and used as A four-year effort by AlA and the Air that these criteria be carefully developed the primary documentation for environ­ Force to revise aircraft structural design in order not to restrict this segment of the mental test procedures. This policy will criteria to current requirements will be air transportation industry. bring about a reduction in the variety of completed with the publication by the Air New activity by FAA and industry in test methods now specified in equipment Force of revisions to 15 criteria specifica­ 1970 is anticipated in the development of specifications, and should ultimately result tions during 1970. noise certification criteria for the super­ in a single set of test procedures accept­ The documents cover requirements for sonic transport, already type-certificated l able to both industry and the military aircraft flight loads, flying qualities, landing transport category aircraft and VTOL services. and ground handling loads, and fatigue aircraft. testing. The revisions contain requirements Consideration is being given to continue Microelectronics and design criteria that reflect performance an Operations Research Program on noise A major AlA objective was accom­ and techniques required in the design abatement tradeoffs as a joint industry/ plished when DoD accepted a policy and testing of the newer generations of FAA effort. These discussions are in a change to permit the issuance of a general military airplanes. preliminary phase though it appears that specification for microelectronics and indi­ Other major efforts involve the develop­ government interest in the continuation of vidual detail military specifications for ment of specifications and revisions in this program is high. This operation re­ microelectronic devices. AlA also assisted areas not previously or adequately docu­ search effort provides a computerized pro­ DoD in preparing a general micreelectronic mented, such as classification of struc­ gram mathematical model which will be device specification for release in 1970 to tural castings, reinforced plastic structural capable of evaluating, on an economic

16 basis, the various tradeoffs involved in In conjunction with the statistical program, eration of interchangeability of standard­ reducing the disturbance due to aircraft an effort will be made to develop more ized cargo units among the various airlines noise. The model would simulate the U.S. appropriate means of reporting accident" which will lead to reduced shipping costs. air transport system through 1985. rates in test programs where the exposure to risk is high and the total hours of flying SST Airworthiness Standards Turbojet and Turbofan Engine Requirements are low. AlA has beEm actively working with the If this program is successful, it should AlA has presented to the three military FAA and other organizations· since 1960 be possible to obtain relaxation of govern­ services a single document which contains with the objective of developing econom­ ment controls and management system re­ the engine requirements specification for ically practical and technologically achiev­ quirements which are now imposed on the turbojet and turbofan engines for the three able airworthiness standards for super­ contractor. services. This document clarifies, simplifies sonic transpprt category aircraft. _ and updates the contents of the present With the expressed need of the FAA to Crashworthiness Program three documents, based on today's and complete such standards in 1970, for ~ppli­ near-future needs. An effort to find ways of increasing pas­ cation to the British/French Concorde (and The preliminary work for this document senger survivability resulting from acci­ recognition that standards applied to this has resulted in modification of Air Force dents involving large air carrier aircraft aircraft will also be applied to the Ameri­ and Navy policy in testing of engines, re­ was initiated by AlA in 1967. This effort can SST), a sense of urgency has been sulting in shorter, less expensive develop­ was essentially completed in mid-1969, with­ injected in working out the details of spe­ ment programs without loss of product a FAA publication of major proposed _ cific requirements. quality. Review of this industry document changes for the certification requirements Informal working sessions with the FAA. by the services is expected to be com­ for transport category aircraft. were held during 1969 with the remaining pleted in 1970. A similar effort to develop The FAA proposal incorporated almost unresolved tentative standards forming the a single requirements specification for all of the AlA's recommendations in the basis for a government industry SST air­ turboshaft and turboprop engines is three areas highlighted for improvements. worthiness standards conference to be held planned for 1970. These included more stringent flammability in mid-1970. requirements for materials used in air­ Aircraft Exhaust Emissions craft interiors, upgraded standards for International Airworthiness Requirements The Department of Health, Education & cabin emergency lighting and adoption of Attempts by AlA to obtain more uni­ Welfare in 1969 presented to Congress its a systems approach with regard to cabin formity between U. S. and airworthiness report on the contribution of aircraft ex­ evacuation. standards of other countries led to an haust emissions to air pollution. This report In response to part of the FAA notice, attempt to reduce the differences between was required by the Air Quality Act of not covered by the original AlA recom­ the United States and United Kingdom air­ 1969. The HEW report used considerable mendations, it was pointed out that some worthiness codes for small airplanes. information that was developed by AlA FAA proposals regarding increased crash With the exception of the airworthiness and the Air Transport Association. load requirements were unnecessary and codes in the Communist world, all codes HEW accepted industry's position that a would impose severe economic penalties are derivatives of either the U. S. or U. K. federally funded and administered pro­ on aircraft. The adoption by FAA of the airworthiness regulations. Following a com­ gram on aircraft exhaust emissions control substance of the AlA recommendations is prehensive comparison of l!· S. and U. K. was unnecessary. This conclusion was expected to improve substantially the in­ regulations for small airplanes,. represen­ reached after determining that aircraft herent safety of the transport category tatives of the AlA, FAA, the British Air engines add little to the total air pollution airplane. Registration Board and the Society of problem. British Aerospace Companies met in Eng­ Unitized Cargo Equipment Further, the new generation of turbojet land in 1969 with the objective of arriving and turbofan engines will have relatively An AlA project group was established at com1;11on airworthiness standards. smoke-free operating characteristics and during 1968 to develop procedures for FAA Many differences in the respective codes there are means available for direct reduc­ approval of pallets, nets and containers by were resolved. While differences still exist, tion in the smoke produced by some en­ the equipment manufacturers, relieve the excellent progress has been made and the gines now in operation. burden on the aircraft manufacturers to project will continue. certify this equipment, and facilitate air­ When this project is completed, partici­ Bailed Aircraft line interchange of unitized cargo. pating companies expect that the costs for Efforts with the Air Force to develop Former procedures required that the obtaining future U.K. certification approvals practical regulations and requirements varied nets, pallets and containers provided will be reduced. related to the qualification of flight crews by each airline for each type of aircraft be Airworthiness Standards and to the conduct of flight operations with individually certificated as part of that bailed aircraft are continuing. In response airline configurated aircraft. The new pro­ AlA representatives continue to work to Air Force concern regarqing the safety cedures were prepar~d in the form of a with FAA on matters concerning airworthi­ of contractor operations, AlA has estab­ National Aerospace Standard (NAS) and ness standards. Specific suggestions were lished a program to develop operating adopted by the FAA as a basis for certifi­ made on the need to streamline the rule­ safety statistics for all contractor opera­ cation. making process and the need for delega­ tions, including both bailed aircraft and It Is estimated that savings to aircraft tion of additional certification tasks to contractor-owned aircraft. manufacturers through the use of NAS industry In order to shorten the certifica• This program will provide recommenda­ 3610 will approximate $1 ,500,000 per tion process and reduce the "unknowns" tions for improvement of contractor opera­ model, assuming a production life of ten in the process. Recommended actions to tions where problem areas are located. years. Long-range benefits include accel- resolve the problem areas were provided.

17 INTERNATIONAL SERVICE

JOHN W. SHAVER McDonnell Douglas Corporation Cha irman, Intern ational Committee

The introduction of the Nixon Trade Bill the establishment and the implementation international cooperation in space projects. and the passage of liberalized export con­ of U.S. trade policy. Dynamic progress in One is between the United States and t rol legislation late in 1969 were progres­ the development of free world commerce India which permits use of the ATS "F" sive measures establishing an improved may be deterred if Congressional analysis satellite by India for one year for educa­ trade environment. of international trade matters is not em­ tional television. A second is a recent gov­ The Administration has assumed a posi­ phasized and increased. It is important for ernment-to-government agreement which th e U.S. to maintain liberal international tive attitude on commercial export growth allows the export to Japan of U.S. launch trade policies in order for the aerospace for the nation by establishing a goal of vehicle technology up to the level of a industry to continue to expand its role as $50 billion in U.S. total exports by 1973. Thor Delta. the nation's leading manufacturing exporter. Achieving this objective is critical since Another effort pointing to further inter­ AlA formed a group to report to govern­ the U.S. balance of trade reduced from national cooperation in space was pro­ ment agencies on the industry's export a surplus of $7.1 billion in 1964 to a low vided by the 1969 report of the President's objectives, showing the impact of these last year of $845 million. Space Task Group. It states that inter­ sales on the nation's security and economy. national interests will be best served by The Chairman of the Cabinet Committee projects which afford maximum oppor­ on Export Expansion, Commerce Secretary DoD Shift in Policy tunites for direct foreign participation. It Maurice H. Stans, is involving his Depart­ Broad changes in DoD policy concern­ discusses the creation of attractive inter­ ment in the export credit problems, import ing mi litary exports were evident in 1969. national institutional arrangements and the tax problems around the world and all Military aerospace sales to allies were involvement of foreign experts in the de­ other forms of non-tariff barriers that tend still permissible on a selective basis. tailed definition of United States space to restrict U.S. access to foreign markets. However, DoD directed that sales should programs and in the conceptual and de­ be negotiated in most instances between sign studies. Trade Policy U.S. industry and foreign governments AlA completed a comprehensive anal­ directly, based on valid requirements of Export Licensing ysis of aerospace non-tariff barriers in the customer. AlA held several meetings The State Department's Office of Muni­ 1969 to support national economic policy with DoD during 1969 to determine the tions Control in 1969 replied constructively and further the development of an unre­ extent of future DoD cooperation with concerning the results of a comprehen­ stricted international sales environment. industry in military export sales. sive AlA survey designed to focus on Congressional recognition of the im­ specific problems and to recommend cor­ portance of international trade and U.S. Space Equipment Exports rective courses of action related to export exports to the nation's basic economic The State Department announced two licensing. Progress is resulting from the health continues to be a key factor in important agreements in 1969 concerning continuing dialogue between the State

1B The International Service is a guidance and coordination point for the exporting segment of the aerospace industry. Operating through the International Committee, its primary activity is the development of a platform for the exchange of views between industry and government agencies, to assist in creating, within the national interest, the optimum environment for increasing aerospace exports.

Department and AlA concerning changes Commercial bankers have expressed keen growth, and impressive assistance by in the International Traffic in Arms Regu­ interest in the export credit financing of Eximbank to the aerospace industry. Dur­ lations. AlA also made specific recom­ civil aerospace products and during the ing the past decade (FY 1960-1969), Exi m­ mendations to the State Department in past decade have become increasingly bank has financed a total of 320 commer­ the matter of wording required in technical involved in aerospace international trade. cial transport aircraft to foreign market assistance agreements. Th is project will Comprehensive international finance pro­ areas with a total contract value of $2.9 be continued in 1970. grams concerning aerospace products billion. AlA also cooperated with the Depart­ begun by AlA at the beginning of the At the end of 1969 the Export-Import ment of Commerce Office of Export Con­ decade have provided factual and detailed Bank announced that ten-year term financ­ trol in the development of new licensing information cin an industry basis to inter­ ing, if necessary, would be made available procedures. The elimination of validated national financial experts in various sec­ for the new generation of wide-bodied jet export license procedures for the ship­ tors of the international business com­ transport aircraft. This progressive action ment of civil aircraft engines to Latin munity. Financial organizations and gov­ satisfactorily meets industry requirements. America during 1969 was a major accom­ ernment officials have now become aware plishment. Cooperating with the Office of and concerned with the significance and NATO Industrial Group (NIAG) Export Control and submitting industry ove rall economic impact of U.S. aerospace At the request of DoD, AlA cooperated recommendations concerning regulations exports. with three other trade associations in and procedures on new and improved The nation's tight money situation in appointing from industry principal repre­ methods proved an effective method of 1969 created a very critical shortage of sentatives to serve on the NATO Indus­ operation for the new AlA Export Control funds for export financing. Bank interest trial Advisory Group which serves in an Task Force. The Export Administration Act rates rose considerably. The Export-Import advisory capacity to the Conference of of 1969 replaces the Export Control Act Bank of the United States, recognizing NATO Armament Directors. of 1949 and provides for liberalized yet this serious economic crisis at a time NIAG is designed to improve NATO controlled trade with all countries with when chronic balance of trade as well as research, development and production which the U.S. has diplomatic or trading balance of payments problems faced the policies and practices insofar as they relations. United States, responded positively to in­ affect industry; to foster a deeper feeling dustry's requirements for export financing. of international involvement in these areas; International Finance During Fi scal Year 1969 the Export Im­ to seek closer cooperation among the The most important continuing factor port Bank fin anced 55 commercial trans­ industries of NATO countries; and to en ­ affecting commercial aerospace export port aircraft to 10 foreign market areas courage the timely and efficient exchange programs during 1969 was the capability amounting to a contract value of $451 of information between NATO governments to extend export credits to foreign buyers. million. This ended a decade of historical and defense industries.

19 OFFICE OF PUBLIC AFFAIRS

The Office of Public Affairs serves to further the aerospace industry's objective to inform the educational community, news media, the government and the general public as to activities conducted by the L. BERKLEY OWlS General Electric Company industry in the areas of national security, space exploration, international Chairman, Public A/lairs · Council trade and commerce and civil aviation.

In its second year of operation, the Office departmental Task Force on the Super­ booklet, which describes the structure and of Public Affairs further aligned its activ­ sonic Transport (SST) . operations of AlA, was revised and re­ ities to serve increasing needs for com­ • Aviation I Space Writers Association, issued during 1969. munications concerning the industry to Washington, D. C., 1969 Year End Review various publics. and Forecast. Editorial Service The office continued to serve as a focal Copies of these presentations were pro­ A monthly pictorial editorial service was point to mobilize the informational re­ duced and distributed to the news media initiated at year's end as a service for sources of member companies, assisted by for use as background in the preparation member company publications. By means a Public Affairs Council made up of com­ of news and feature articles. of appropriate material illustrating facts, pany public relations and public affairs figures and general information about the executives. A major activity involved the Publications aerospace industry, member company pub­ development and presentation of industry­ AlA's publications program continued to lications are better equipped to communi­ w ide positions on issues of direct interest be a primary method of presenting the cate to industry employees the various to the industry. industry's accomplishments. Principal pub­ issues and events of particular interest. A greatly strengthened relationship be­ lications during 1969 included: tween Public Affairs and other AlA coun­ • Aerospace Magazine. This publication Economic Data cils and committees developed during 1969. was issued quarterly as a major vehicle for This close relationship adds immeasurably public communications. Of special interest AlA continued to work on the improve­ to the effectiveness of the Association's was an issue published in September en­ ment of the collection of aerospace sta­ public affairs effort. titled " Goals for America" in which articles tistics with the Federal Aviation Adminis­ The office also established a Public Re­ were contributed by seven members of tration's Statistical Advisory Committee lations Panel made up of Washington­ President Nixon's cabinet concerning the established in 1966. Cooperation was also based public relations specialists of mem­ social and economic issues ·and policies provided the Bureau of Labor Statistics of ber companies to enhance relations with of their government departments. An in­ the U.S. Department of Labor in develop­ the media and exchange information on troduction to this special issue was pro­ ing and publishing in 1969 an information industry-wide problems. By the end of the vided by Vice President Spiro T. Agnew. index for general aviation and helicopter year, this new panel had proven increas­ • Aerospace Year Book. The 47th annual manufacturers. ingly effective. edition of the Year Book was issued and BLS was provided information through Press briefings were provided during the distributed commercially. A publication for its Advisory Council in such areas as eco­ year on such diverse topics as the super­ the National Aerospace Education Coun­ nomic growth, employment and interna­ sonic transport, air commerce restrai nts, cil, " U.S. Aircraft, Missiles and Spacecraft", tional statistics in order to expand that aircraft noise regulations, the nation's was made up from se lected sections of the agency's aerospace industry statistics. space program, and proposed smoke hoods Year Book and sold by NAEC. Public Affairs also continued its work with for airline passengers. • Aerospace Facts and Figures. Published the Bureau of the Census of the Depart­ Karl G. Harr, Jr., president of AlA, made si nce 1945, Facts and Figures is recog­ ment of Commerce on improving aero­ a number of presentations during 1969, nized by media, government, financial in­ space statistics published by that agency. providing positions and ideas on a variety stitutions and industry in general as the Two statistical surveys of the industry's of subjects of direct interest to the Asso­ authoritative source for aerospace eco­ employment were published and the ciation. These included: nomic statistics. A listing of public rela­ monthly Economic Indicators of the indus­ • Testimony before the Senate Commerce tions officials of member companies was try's activities were distributed widely. Subcommittee on Aviation on proposed air­ provided in the 1969 ed ition. Two surveys of aircraft on order from port/ airways legislation. • Annual Report. In addition to its primary the industry were also conducted. • Testimony before the House Military Op­ function of informing the membership of AlA continued its support of the National erations Subcommittee on the proposed AlA, the report was distributed to govern­ Aerospace Education Council in order to Holifield Commission to study the govern-· ment agencies, private organizations and improve the curricula on aerospace sub­ ment procurement process. the press. jects offered the nation's students and to • Testimony before the President's Inter- • AlA Organization and Functions. This assist the teaching profession.

20

goods movers on bills not paid within 14 TRAFFIC SERVICE days. Annual savings: $300,000. • Successfully petitioned for suspension and investigation of motor carrier penalty The Traffic Service is responsible charges on shipments weighing under 500 for obtaining adequate, economical pounds. Tariffs were subsequently can­ celled. Annual savings: $100,000. and efficient transportation • Opposed and obtained cancellation of a special 2 percent service charge imposed facilities tor the aerospace industry. by motor van carriers. Annual savings: $143,000. Traffic Service is also a party to the GLENN A. RODIN The Boeing Company following ICC cases which at year's end Chairman, Traffic were still active in various stages of Committee litigation: • A rule-making proceeding to require AlA's Traffic Service during 1969 concen­ to carriers and their rate associations motor carriers to upgrade service cover­ trated its efforts to reducing costs and were ineffective to accomplish desired ing aerospace shipments of small lots improving the effectiveness of. aerospace results it was necessary to seek adjudica­ of explosives and hi-value articles. logistics programs. To attain these ob­ tion of the issues before the Interstate • A rule-making proceeding designed to ject ives it was primarily active in four Commerce Commission. improve the quality of service provided by areas: common carrier rates and services; household goods carriers. During the past year Traffic Service litigation before federal regulatory agen­ • A petition for declaratory order to estab­ has participated in nine such ICC proceed­ cies with respect to rates and services; U.S. lish the lawfulness of motor and rail car­ ings, four of which were decided favor­ Customs matters and several coordinated rier claim settlement rules affecting losses ably to AlA. Decisions are still pending government-industry projects to facilitate and damages to aerospace shipments. with respect to the remaining five. The the movement of aerospace material with • A complaint against tariff rules limiting following completed ICC proceedings re­ safety, expedition and maximum economy. the liability of railroads to maximum of sulted in total annual savings of $651,000 $300,000 for loss and damage to hi-value Common Carrier Rates and Services to AlA member companies, broken down as follows: aerospace articles. Truck and rail rates generally rose nine The following actions have been taken percent in 1969. Constant and careful • Prevented imposition of increased rates during the year before carrier associations. screening of carrier rates revealed num­ on passenger aircraft seats ranging from Some of the actions, as indicated, have erous cases where proposals affecting 50 to 82 percent for motor carrier ship­ been successfully concluded. Others are aerospace articles were found to be un­ ments from California to Washington. still pending. Annual savings: $108,000. justified or otherwise unreasonable, requir­ • Obtained reductions of $137.17 per ship­ ing action by Traffic Service to prevent • Obtained an ICC ruling declaring un­ ment on increased rates for helicopter publication of such rates. When protests lawful a 2 percent charge by household blades. • Obtained reductions on rates applicable Department of Commerce to obtain revi­ now threatened with encapsulation by en­ to galley units, primarily those used in sions to customs regulations calling for croaching freeway systems. large jet aircraft. Annual savings: $51,000. payment of duty on the full value of U.S.­ • In a cooperative project with the De­ • Protested a general 6 percent increase manufactured aircraft returned from fense Supply Agency and the Office of in trans-continental motor carriers rates. abroad rather than on the value of foreign the Secretary of Defense reviewed and • Protested increased rates applicable manufactured components contained in revised security regulations governing the nationwide on motor carrier shipments of such aircraft. The Department has advised transportation of classified material so as passenger aircraft seats. that legislation will be proposed in 1970 to provide improved in-transit protection • Protested proposed increased rates to resolve this problem. for classified material at greater economy. applicable to motor carriers shipments of • Undertook publication of an import! • As a member of an advisory committee, air hose or ducts. export manual setting forth and interpret­ consisting also of representatives of the • Proposed new handling procedures to ing the requirements and procedures of National Academy of Sciences, the Na­ reduce the high incidence of damage to U.S. Customs. The manual will aid indus­ tional Bureau of Standards and NASA, mobile homes. try employees working in this area. assisted the Department of Defense in a • Protested proposed surface freight for­ project to identify and measure the shock warders limitation of liability to $5 per Government Interface and vibration environment of material in­ pound. Quite often the actions of various agen­ transit by common carriers. cies of government at all levels, federal, • At the request of the U.S. Army Missile U.S. Customs Matters state and local, impose restrictions or Command established a task force to re­ The effect of U.S. Customs regulations establish requirements which affect the view and comment on a proposed military on the continuing ability of the aerospace ability of the aerospace industry to main­ standard governing transportability require­ industry to compete effectively and profit­ tain a viable transportation network for ments for missile weapon systems. ably in world markets has received close the safe, expeditious and economical • Participated in a program instituted by attention during 1969. Customs regulations movement of its commodities. When prob­ the Civil Aeronautics Board to review and have evolved over the years into a patch­ lems arise in this area, Traffic Service revise agreements governing air carrier work of archaic restrictions, difficult if not coordinates the interest of AlA members liability, claims rules and practices. impossible to interpret, and serving as im­ through the Traffic Committee so as to Cost Savings pediments rather than aids to the industry. assure adequate representation of indus­ The following actions have been taken to try positions necessary to accomplish cor­ Traffic Service during 1969 continued promote relief in this area: rective actions. The following are resumes its program of gathering and exchanging • Appeared before the U.S. Tariff Com­ of several projects which have been ideas and information relating to improved mission and presented a plan of action to undertaken in this area throughout the techniques used by member companies to revise and d t . up- a e customs regulatiOns past year: support government cost savings efforts. gove · . rn~ng temporary import procedures, • A task force of the Traffic Committee, Successful actions by individual aerospace I.e., duty-free entry of foreign aerospace in a joint industry-government project traffic managers resulted in savings of components which are subsequently ex­ undertaken in cooperation with California approximately $16.4 million. The results po~ted as part of a U.S.-manufactured highway planners, developed a program of coordinated actions taken by the AlA article. Final action is pending. which will insure continued open access Traffic Committee are reflected in this lant facilities which are amount. • Worked in close coordination with the to aerosp ace P

23 TRANSPORT AIRCRAFT COUNCIL

The Transport Aircraft Council coordinates and presents transport aircraft and engine manufacturers' views with respect to commercial air transport matters; it plans and gives direction to AlA actions designed to promote the most effective and efficient potential of civil air transport aircraft.

JACKSON R. McGOWEN McDonnell Dougl as Corporation Chairman, Transport Aircraft Council The Transport Aircraft Council in 1969 through close association with other seg­ ments of the civil air transport industry and appropriate government agencies con­ tinued to promote the exchange of techni­ cal information designed to contribute to the solution of air commerce constraints. Programs designed to solve these growing problems were expanded and participation among the air carrier manufacturing, air­ line operating and airport management interests in treating with these programs was broadened. Acti ons completed or undertaken in 1969 included: • Publication of " Transport Aircraft Char­ acteristics, Trends, and Growth Projec­ tions. " This document identifies growth parameters of possible future aircraft. It is designed to inform airport planners of those trends in conventional takeoff and landing aircraft design characteristics that are expected to influence significantly the design and operation of airports of the future. The document has been distributed world-wide and action has been initiated to up-date its contents. • Development of a future trends docu­ ment for short take-off and landing (STOL) aircraft that will synthesize future poten­ tial parameters of such aircraft, again to provide advance planning data for com­ munities, airport designers and operators. • Formulation of a standard data format for the collection and assembly of airport physical, operating and economic data. This data is intended to provide both current and long-range planning informa­ tion to aircraft manufacturers and airport operators. • Participation with Department of Trans­ portation Air Traffic Control Advisory Committee established in 1968 for the purpose of defining the air traffic control and airport system needs of the 1980s. The report will identify both the system goals as well as the time-phased actions required to achieve these objectives. • Initiation of a joint industry effort to review federal advisory standards for air­ port construction and design in light of future aircraft design trends and to make recommendations for changes to the FAA.

25 ·uTILITY AIRPLANE COUNCIL

The primary efforts of the Utility Airplane

Co unci 1 in 1969 were directed toward better public understanding of the essential role of general aviation as an integral ele­ ment of the nation's air transportation sys­ tem and economy.

General Aviation Growth WILLIAM L. PIPER, JR. Piper Aircraft Corporation During the decade of the 60s the active Chairman, Utility fleet of general aviation has increased from Airplane Council approximately 75 ,000 in 1960 to an esti­ mated 130,000, and flying hours have in­ creased from 13,000,000 in 1960 to more than 25,000,000. The industry's trend line has shown strong and continuing growth which has steadily accelerated during the past decade. De­ spite such tangible evidence there has been a lack of adequate factual informa­ tion concerning general aviation in relation to the sizeable economic contribution made to the nation's Gross National Product.

Speas Study To provide such needed factual informa­ tion, during the latter part of 1968 and completed in early 1969, the members of the Utility Airplane Council jointly funded a comprehensive research project. The firm *The Utility Airplane Council was disbanded, of R. Di xon Speas Associates was commis­ sioned for this purpose. With the cooper­ effective December 31, 1969, as noted in ation of the UAC members, but with in­ dependent responsibility, they prepared a the President's Message to the Membership. basic research paper, "The Magnitude and

26 Economic Impact of General Aviation." pare a recommended syllabus for air age UAC commented favorably on the fol­ The study provides factual evidence that education suitable for junior colleges. This · lowing FAA proposals: general aviation is making a significant work is programmed for completion by mid- • To remove restrictions on the operation contribution to the national economy which 1970 and will be available tor 1970-71 junior of aircraft with one-pilot station under will more than double in the decade of the college program planning. This research Instrument Flight Regulation conditions. 70s. It also disclosed a positive relation­ study is being conducted independently by • To _give greater credence to recent pilot ship between Gross National Product and a professional team of junior college edu­ expenence as a credit toward pilot pro­ changing levels of general aviation activity. cators, and several representatives of the ficiency checks. UAC have been invited to serve on the • To change unnecessary restrictive re­ Aviation Education advisory committee monitoring the study. quirements for conducting demonstration Adequate programs of aviation education FAA Liaison and market survey flights in aircraft not yet in the nation's schools continued to be a formally certified and which imposed more matter of interest and concern to the Rule-making activities of the Federal stringent requirements on American air­ members of the Utility Airplane Council. Aviation Administration as they relate to craft than those of foreign manufacture In past years this annual report has re­ the manufacture of general aircraft and brought to this country. ported work of the UAC directed primarily their pilotage and operation in the nation's In other actions, UAC: to high schools. Several years ago film­ airspace are continually monitored. These strips with coordinated sound, which could activities included: • Opposed a FAA Notice which would be utilized in classrooms, describing career • A UAC team that monitored all aspects establish special and quite restrictive rules opportunities and the importance of the of the FAA's first National Aviation System in order to operate to and from a number community airport, were distributed to base Planning Review Conference and participa­ of what are termed " high density terminal operators in almost 500 places which they tion in the various seminars which were areas" on the grounds that entirely suitable in turn could utilize for local efforts. They a part of the conference. alternate measures were available. While have been continuously used since then. • Participation in meetings concerned with opposing the rule making as issued, the During the 1966-67 and 1967-68 school the growing congestion at major airports UAC recognized the need for additional years several teams traveled extensively and assistance in the planning of modifica­ restrictions, presented alternate sug­ throughout the nation presenting a lecture tion of proposed rules considered to be gestions, and offered to work constructively program with coordinated background unnecessarily stringent. in cooperation with the FAA and others sound and color slides called " In The • Meeting with FAA officials in relation to in arriving at mutually satisfactory com­ Pilot's Seat" to hundreds of high school a UAC/FAA cooperative effort which has promise measures. assemblies. continued for more than 36 months to im­ • Cooperated with FAA in publicizing the As a further part of a continuing educa­ prove the availability, currency and variety further extension of the near-collision vol­ tion effort, UAC members made a grant to of general aviation statistical data of great untary reporting procedure study and in the American Association of Junior Col­ public value which only FAA can properly disseminating the research findings as so leges to conduct a special study to pre- compile. far compiled by FAA.

27 VERTICAL LIFT AIRCRAFT COUNCIL

The Vertical Lift Aircraft Council coordinates and presents the vertical lift aircraft industry views on matters affecting these aircraft and in promoting the development and use of VI STOL aircraft . The Vertical Lift Aircraft Council during Working through VLAC, a group consist­ 1969 carried forward its programs de­ ing of representatives from the Air Trans­ signed to achieve wider knowledge and port Association, the Airport Operators acceptance of vertical lift systems. Council and the Federal Aviation Admin­ istration reviewed and refined the various Northeast Corridor Hearings drafts of the Design Guide to assure In the Civil Aeronautics Board's North­ consideration of views from all segments east Corridor VTOL investigation hearings, of the vertical lift industry._ Publication completed in 1969, the Council's formula is scheduled in 1970. for determining Direct Operating Costs In addition, VLAC has initiated investiga­ proved of significant value to those sub­ tion of the need and feasibility of a Na­ mitting proposals based on turbine pow­ tion al Advisory Group for Heliport Stand­ ered helicopters. ards. Discussions with the ATA, AOC, Specific effort was applied to the prob­ FAA, the American Institute of Architects, lem of designing and siting metropolitan the Society of Automotive Engineers and facilities. others will begin in 1970.·

V/STOL Airworthiness VLAC Publications

Support for the Aerospace Technical The following publications were dis­ Council project to revise and refine the tributed in 1969. tentative Federal Aviation Regulations on Vertical Lift Designation Chart. This V/STOL Airworthiness continued. Input of comprehensive listing of both production basic data will be completed early in 1970 models and research/ development proj­ at which time suggested revisions will be ects was revised and distributed. Ninety­ recommended to the Federal Aviation six production models ranging in size Administration. from 1 to 50 places are listed and twenty­ one research and development projects. Highway Safety 1969 Directory of Helicopter Operators­ Support of National Highway Safety Commercial-Civil Government and Helicop­ Bureau and Public Health Service planning ter Flight Schools. in the United States for emergency highway medical services and Canada . This listing includes 1,379 continued. Studies on helicopter-supported operators for an increase of more than 34 highway safety programs, funded by the percent over the 1967 total of 1,023 and a National Highway Safety Bureau, were five yea r increase of almost double th e 1964 completed and implemented through dem­ total of 710. Similarly, the number of onstration projects funded by both federal helicopters operated increased to 3,433. and local government agencies. This is almost 40 percent greater than Four of these demonstrations were the 1967 total of 2,438 and almost double funded by the· National Highway Safety the 1,764 ai rcraft operated in 1964. Bureau. In addition, nine states operating The Federation Aeronautique lnterna­ 21 helicopters for highway medical service tionale Directory of Helicopter Records are being assisted by the federal govern­ and the 1969 edition of Recipients of ment under th e matching funds concept. Helicopter Awards, 1944- 1969 were also During the Labor Day holiday period, issued.

WARREN T . ROCKWELL VLAC assisted in planning and directing DoT /NASA Transportation Study Bell Helicopter Company a helicopter-supported medical and evac­ Chairman. Vertical Lilt Aircraft Council uation demonstration for the National Capi­ In conjunction with the Aerospace Tech­ tal Beltway system. nical Council, the Utility Aircraft Council VLAC-prepared articles describing th e and the Transport Aircraft Council, VLAC role of the helicopter as an ambulance assisted in providing the initial industry and law enforcement tool were reprinted input to planning the Department of Trans­ and distributed by the Public Health Serv­ portation/ National Aeronautics and Space ice and state and local government Administration study on national transpor­ agencies. tation research and development req ui re­ ments. Facilities Planning Scheduled for completion in 1970, this Major effort was devoted to assisting project is designed to define research and th e Federal Aviation Administration in its development objectives for th e total air revision of th e Heliport Design Guide. transportation sys tem of the next decade.

29 REQUESTS F'OR PROPOSALS

Requests For Proposals Study exact contractual commitment. With these AlA was requested by the Air Force in objectives in mind, the major RFP source 1969 to undertake an independent assess­ evaluation categories of technical, opera­ ment of industry experience with Air Force tional, logistics, manufacturing, quality, Requests for Proposals covering recent management, contracting, purchasi ng , and major systems acquisitions. The Air Force cost were analyzed to determine where requested that the study place particular improvements might be made. Basic DoD emphasis on the Contract Definition Phase. and Air Force policy documentation under The Air Force objective for the study was which source evaluation occurs to identify ways to simplify RF Ps without analyzed. losing the basis for rational and sound The resultant study includes a discus­ source selections by reducing paper work, sion, together with conclusions and recom­ man-hours and costs. mendations, for each source evaluation The Air Force request provided a ti mely category. It covers activities related to opportunity to analyze an important area each RFP objective and to applicable of industry activity which has seriously policy documents and data requirements. diverted talent, energy, dollars and other Recent general experience in major sys­ resources. Because of the time restraints tems was used , and program examples for conducting the study, the AlA con­ were provided. In addition, the study cluded that the most expeditious approach ap pendix contained case studies of three to such an effort should involve participa­ major programs which were used exten­ tion by representatives of those profes­ si ve ly in the analysis. sional skills who have had direct experi­ The study provided a detailed set of 81 ence in responding to DoD RFPs. recommendations related to each particu­ The skills represented within the AlA lar source evaluation category. From these committee organization offered a unique detailed recommend ations, th e study iden­ opportunity to draw upon a wide spectrum tified seve n findings of major significance. of senior contractor management. A prime The study effort revealed certain themes task team was established with members weaved throughout. recent industry experi­ from the following permanent AlA com­ ence. Most of these are sym ptomatic of a mittees: Aerospace Technical Council, gradual build-up of detailed data req uire­ Management Systems, Materials Manage­ ments to a level of cost and effort beyond ment, Procurement and Finance Council, that necessary to meet the three objectives Product Support and Quality Assurance. of a RFP. Further, members were selected who were Presentation of the AlA study results representatives of aircraft, engine, miss ile, was made to Air Force Assistant Secretary space and electronic system manufacturers. Philip Whittaker (I&L) and his staff late in The analysis was directed to the central 1969. Presentations wi ll be made also to objectives of Air Force RFPs which are DQR&E, OSD(I &L), and OSC (Comptroller). to provide system or hardware definition, Presentations to the other military services establish a basis for source se lection and are planned early in 1970.

30 ORGANIZATION CHART (January 1, 1970)

Th Aerospace Industries Association of America, Inc. (AlA) is the national trade MEMBERSHIP association of companies in the United States of merica engaged in the research, development and manufacturing of aero­ space systems, including but not limited to manned and unmanned aircraft, missiles BOARD OF GOVERNORS and astronautical vehicles, their propulsion or control units, or associated equipment. Association policy is determined by a Board of Governors consisting of senior PRESIDENT executives of twenty-six member compa­ (General Manager) nies and the AlA President. The President, Karl G. Ha rr, Jr. who is also General Manager, is responsible SEN IOR VICE PRESIDENT to the Board for execution of its policies. (Asst. General Manager) Membership of the Association at the V. J. Adduci end of the year totals 87, including 59 Division A (manufacturing) members, 11 VICE PRES./SECRETARY-TREASURER Division B members, and 17 affiliate (Business Manager) members. Samuel L. Wright VICE PRESIDENT (Defense & Space Programs) C. R. Lowry

OFFICE OF PUBLIC AFFAIRS Carlyle H. Jones I DIRECTOR OF RESEARCH GENERAL COUNSEL AND SPECIAL PROJECTS ,...- M. H. Wilner B. E. Eng Iis h I

DIRECTOR OF INFORMATION WESTERN OFFICE Loui s A. Page - Ken Ellington I I LEGISLATIVE COUNSEL Lloyd R. Kuhn

AEROSPACE OPERATIONS SERVICE T. G. Hae rtel AEROSPACE TECHNICAL COUNCIL C. R. Lowry AEROSPACE PROCUREMENT SERVICE F. 0. Ohlson, Jr. TRANSPORT AIRCRAFT COUNCIL J. J. Lee INTERNATIONAL SERVICE C. J. Reeves VERT ICAL Ll FT AIRCRAFT COUNCIL R. J. Low TRAFFIC SERVICE A. J. O'Brien

31 AlA MEMBERSHIP

MANUFACTURING MEMBERS RCA Defense Electronic Products ABEX CORPORATION ROHR CORPORATION AERODEX, INC. SINGER-GENERAL PRECISION, INC. AEROJET-GENERAL CORPORATION A Subsidiary of the Singer Co. AERONCA, INC. SOLAR, DIVISION OF INTERNATIONAL AERONUTRONIC DIVISION, PHILCO-FORD HARVESTER CO. CORPORATION SPERRY RAND CORPORATION AMPHENOL CONNECTOR DIVISION Sperry Gyroscope DivisiQn The Bunker-Ramo Corp. Sperry Systems Management Division AVCO CORPORATION Sperry Flight Systems Division BEECH AIRCRAFT CORPORATION Vickers Division THE BENDIX CORPORATION SUNDSTRAND AVIATION, DIVISION OF THE BOEING COMPANY SUNDSTRAND CORPORATION CESSNA AIRCRAFT COMPANY TELEDYNE RYAN AERONAUTICAL CHANDLER EVANS, INC. TEXTRON INC. Control Systems Division of Bell Aerospace Company Colt Industries, Inc. Bell Helicopter Company CONTINENTAL MOTORS CORPORATION THIOKOL CHEMICAL CORPORATION CURTISS-WRIGHT CORPORATION TRW INC. FAIRCHILD HILLER CORPORATION TWIN INDUSTRIES CORPORATION, DIVISION THE GARRETT CORPORATION OF THE WHEELABRATOR CORP. GATES LEARJET CORPORATION UNITED AIRCRAFT CORPORATION GENERAL DYNAMICS CORPORATION UNIVERSAL OIL PRODUCTS COMPANY GENERAL ELECTRIC COMPANY WESTINGHOUSE ELECTRIC CORPORATION Aerospace Group Aerospace Electrical Division Aircraft Engine Group Aerospace Division GENERAL MOTORS CORPORATION Astronuclear Laboratory Allison Division THE B. F. GOODRICH COMPANY DIVISION B MEMBERS Aerospace & Defense Products AVIQUIPO, INC. GOODYEAR AEROSPACE CORPORATION PARKER & COMPANY INTERNATIONAL, INC. GRUMMAN AEROSPACE CORPORATION MANUFACTURERS AIRCRAFT ASSOCIATION, INC. A Subsidiary of Grumman Corporation BRUKNER, CLAYTON J. GYRODYNE COMPANY OF AMERICA, INC. CONDON, CYRIL HYDE HARVEY ALUMINUM, INC. DE SEVERSKY, A. P. HERCULES INCORPORATED FALES, HERBERT G. HONEYWELL INC. HANKS, COL. STEDMAN SHUMWAY HUGHES AIRCRAFT COMPANY SIKORSKY, I. I. IBM CORPORATION Federal Systems Division HONORARY LIFE MEMBERS INTERNATIONAL TELEPHONE & TELEGRAPH CORPORATION LOENING, ALBERT P. Defense-Space Group LOENING, GROVER ITT Aerospace/Optical Division ITT Avionics Division DIVISION OF AFFILIATE MEMBERS ITT Defense Communications Division AIR CARRIER SERVICE CORP. KAISER AEROSPACE & ELECTRONICS ASSOCIATED AEROSPACE ACTIVITIES, INC. CORPORATION AVIATION WEEK & SPACE TECHNOLOGY KAMAN AEROSPACE CORPORATION BOOZ, ALLEN APPLIED RESEARCH, INC. KOLLSMAN INSTRUMENT CORPORATION BRITISH AIRCRAFT CORP. (U.S.A.), INC. LEAR SIEGLER, INC. COMMERCE OVERSEAS CORPORATION LOCKHEED AIRCRAFT CORPORATION DOYLE, O'CONNOR & CO., INC. LTV AEROSPACE CORPORATION EASTERN AIRCRAFT CORP. THE MARQUARDT CORPORATION INFORMATION HANDLING SERVICES, INC. MARTIN MARIETTA CORPORATION LYBRAND, ROSS BROS. & MONTGOMERY MC DONN,ELL DOUGLAS CORPORATION NATIONAL AVIATION CORP. MENASCO MANUFACTURING COMPANY NATIONAL CREDIT OFFICE, INC. NORTH AMERICAN ROCKWELL CORPORATION SPACE/ AERONAUTICS NORTHROP CORPORATION TEXACO, INC. PACIFIC AIRMOTIVE CORPORATION TRANSAERO, INC. PIPER AI

32