Secretary FROSCH. The first one was on the 16th of August, 1968, and the most recent one was the day before yesterday.

The next tests are scheduled, [deleted].

Mr. NEDZI. When does it conclude, is my question, Mr. Secretary. Secretary FROSCH. It would conclude some time about [deleted]. Admiral SMITH. I believe the flight tests will be completed a little bit later. [Deleted.]

Mr. NEDZI. Thank you.

Thank you, Mr. Secretary, and I thank the gentleman for yielding. Mr. RANDALL. In the area of the effort to quiet our submarines, you may have addressed yourself to it, but I would like to have it fixed in the record or nailed down.

We have a lot of submarines, of course. Is it possible, and at what expense, what percentage of cost of the original total cost, would it be to modify some of our old subs to quiet them down? Could that be done?

Secretary FROSCH. The noise a submarine makes is a result of all of [deleted].

We do have a program of back-fitting submarines with changes in [deleted] when these changes will be worth the price.

Mr. RANDALL. That is the point. Are they worth the price, and when?

Secretary FROSCH. They are, in retrofit, when the [deleted] where it is relatively easy to change the [deleted].

Mr. RANDALL. Because of the lateness of the hour, the point I'm trying to raise is what is the margin or measure of costs to quiet it down? Is it generally expensive or not, that is the question. Then the following question is, is it worth it? I mean when you get through with everything, the hull is there, the steel hull, and can you detect it? What is your conclusion as to first the relative cost, and then the worth of it in relation to the cost?

Secretary FROSCH. The conclusion is [deleted].

Mr. RANDALL. I see.

Secretary FROSCH. [Deleted.]

Mr. RANDALL. Would it be a proper statement to say it is desirable within a cost range, but if it reaches the point of marginal returnSecretary FROSCH. Precisely.

Mr. RANDALL. Thank you very much.

Mr. NEDZI. Mr. Chairman, I would ask your indulgence for one more question.

The CHAIRMAN. Go ahead.

Mr. NEDZI. Thank you, sir.

Mr. Secretary, you mentioned earlier all of the contracts which we have with research people on campuses are capable of being terminated at the convenience of the Government.

I think it would be useful, Mr. Chairman, to have in the record the substance of these research contracts, just what kinds of contracts are entered into, in order to determine just what effect your amendment might have.

Secretary FROSCH. We can certainly provide a sample contract. (The following information was received for the record:)

SAMPLE RESEARCH CONTRACT

EXPLANATORY STATEMENT/CONTRACTS NO0014-69-A-0311

AND NO0014-69-A-0311-0001

Contracts N00014-69-A-0311 and N00014-69-A-0311-0001 represent the "basic" or "master contract" with Murray State University Foundation and Task Order 0001 issued thereunder. The basic "or 'master contract, NO0014-69-A-0311, contains the general provisions which apply to all task orders at the University, and these general provisions contain such things as the Allowable Cost and Payment clause, the Termination for Convenience of the Government clause and other clauses required by statute or regulation. It is noted that the termination clause of the contract (page 11) provides that "The performance of work under this contract may be terminated, in whole or from time to time in part, by the Government whenever for any reason the Contracting Officer shall determine that such termination is in the best interest of the Government." The task order, NO0014-69-A-0311-0001, contains a statement as to the scope of work, the amount of funding, the period of performance and other provisions relating specifically to the individual research project.

basic or "master contract' and the task order issued thereThis under are typical of the type of contractual arrangement used by the Navy in supporting research at educational institutions. The contract is a cost-reimbursement type contract at a level of $30,000.00 per year. This particular contract is a cost-sharing contract in which the University is sharing in the indirect costs (overhead) and in this respect is not typical.

this document and return 3 copies to issuing office.)

Contractor agrees to furnish and deliver all items or perform all the services set forth or otherwise identified above and on any continuation sheets for the consideration stated herein. The rights and obligations of the parties to this contract shall be subject to and governed by the following documents: (a) this oward/contract, (b) the solicitation, if any, and (c) such provisions, representations, certifications, and specifications, as are attached or incorporated by reference herein. (Attachments are listed herein.)

Murray State University Foundation

23. NAME OF CONTRACTOR

Jassy Day

26

BY

AWARD (Contractor is not required to sign this document.)

Your offer on Solicitation Number

including the additions or chonges made by you which additions or changes are set forth in full above, is hereby accepted as to the items listed above and on any continvotion sheets. This award consummates the contract which consists of the following documents: (a) the Government's solicitation and your offer, and (b) this award./ contract. No further contractual document is necessary.

27. UNITED STATES OF AMERICA

Cw.staring

(Signature of Contracting Offic OFFICER (Type or

ARTLEYP

(Signature

of person authorized to sign)

As used throughout this contract, the following terms shall have the meanings set forth below:

(a) The term "head of the agency" or "Secretary" means the Secretary, the Under Secretary, any Assistant Secretary, or any other head or assistant head of the executive or military department or other Federal agency; and the term "his duly authorized representative" means any person or persons or board (other than the Contracting Officer) authorized to act for the head of the agency or the Secretary.

(b) The term "Contracting Officer" means the person executing this contract on behalf of the Government, and any other officer or civilian employee who is a properly designated Contracting Officer; and the term includes, except as otherwise provided in this contract, the authorized representative of a Contracting Officer acting within the limits of his authority. (c) Except as otherwise provided in this contract, the term "subcontracts" includes purchase orders under this contract.

(d) The term "contract" includes each separate Task Order issued hereunder.

(e) The term "Task Order" means a separate agreement between the Government and the Contractor which is executed under, and constitutes a part of, this contract, and pursuant to which the Contractor agrees to perform work in a specified field of research and/or development in accordance with the provisions of this contract and such Task Order.

(f) The term "Department" means the Department of the Navy.

2. ALLOWABLE COST AND PAYMENT

(a) For the performance of this contract, the Government shall pay to the Contractor
(i) the cost thereof (hereinafter referred to as "allowable cost") determined by
the Contracting Officer to be allowable in accordance with

-

(A) Part 3 of Section XV of the Armed Services Procurement Regulation as in effect on the date of this contract; and

(B) the terms of this contract.

-

(b) Once each month (or at more frequent intervals, if approved by the Contracting Officer), the Contractor may submit to an authorized representative of the Contracting Officer, in such form and reasonable detail as such representative may require, an invoice or public voucher supported by a statement of cost incurred by the Contractor in the performance of this contract and claimed to constitute allowable cost.

(c) Promptly after receipt of each invoice or voucher and statement of cost, the Government shall, except as otherwise provided in this contract, subject to the provisions of (d) below, make payment thereon as approved by the Contracting Officer.

(d) At any time or times prior to final payment under this contract, the Contracting Officer may have the invoices or vouchers and statements of cost audited. Each payment theretofore made shall be subject to reduction for amounts included in the related invoice or voucher which are found by the Contracting Officer, on the basis of such audit, not to constitute allowable cost. Any payment may be reduced for overpayments, or increased for underpayments, on preceding invoices or vouchers.

A March 1967