Shadow and Stinger: Developing the AC-119G/K Gunships in the Vietnam War

4. Finding the Funds and Modifying the Contracts

C h a p t e r 4 finding the funds and Modifying the Contracts i t IS NECESSary to understand several specific facets of the gunship program at Warner robins in order to have a complete picture of the process. Examining the details of the program’s financial procedures and contract modifications in this chapter, as well as other issues such as logistics support, the addition of specific systems, weight reduction, performance improvement, and other technical aspects in later chapters, will not only thoroughly present all of the aspects of the program but also illustrate the complicated nature of the Gunship III project. It would be a gross understatement to say that the debate among senior officials, as well as the ever-changing nature and politics of the war and functional possibilities of the weapon system, made this one of the most complicated programs in the history of Warner robins. However, it was also a project that WraMa and Fairchild-Hiller personnel ultimately brought to a successful conclusion. only by examining the details can one hope to understand how they effected this “miracle.” finding fundS, Modifying ContraCtS  Contract Specifics on 11 January 1968 Warner robins officials issued the aC-119G prototype aircraft letter contract F09603-68-C-0996, worth $120,000, to Fairchild-Hiller, who operated under its provisions until 17 February. the agreement provided for the prototype modification of one C-119 aircraft into an aC-119G configuration. Contract revisions brought about minor changes until the program moved on to the production phase. the original agreement called for the aircraft to be completed on 5 March 1968.1 However, policy changes in Washington and events in Vietnam soon altered these plans. Still, the aC-119 program moved forward, and, even before the Fairchild-Hiller workforce completed the G model prototype, the USaF secretary approved the modification of 52 C-119s to aC-119s: 26 G models (including the prototype) and 26 K models. WraMa officials, pursuant to USaF and aFlC directives, awarded the sole source letter production modification contract also to Fairchild. Under the provisions of contract F09603-68-C-1633, dated 17 February 1968 and worth $20.8 million, the parties agreed not only to upgrade the components on the prototype but also to perform IraN maintenance inspections concurrent with the reconfiguration. as they concluded the production contract, leaders on both sides contemplated replacing this dual contract arrangement with a firm fixed-price incentive contract to carry the program to conclusion.2 as a result, those in charge had to either amend the 0996 contract in order to incorporate the agreement to prototype changes or terminate it and add the prototype work as an amendment to contract 1633. the contractor recommended and Warner robins agreed to a no-cost termination of contract 0996.3 Having examined their accounting system, Fairchild-Hiller recognized existing problems in segregating the performance of identical work under the two contracts since one was firm and fixed price (FFP) and the other was fixed-price incentive (FPI). Both sides agreed that having an FFP contract for the prototype and an FPI for the production models was not only awkwardly redundant but also created an undesirable contract arrangement and potentially a poor work environment. therefore, they terminated 0996 and amended 1633 to incorporate the prototype modification.4  Shadow and Stinger this basic letter contract underwent thirty-seven amendments by June 1970. officials amended the contract for various reasons, including changes in funding, new aircraft operational requirements, and the need to recycle the aircraft. the parties undertook these contractual actions under the tenets found in air Force Procurement Instruction and armed Services Procurement regulation 3-408, pursuant to the authority of 10 U.S. Code (USC) 2304(a)(2), as stated in paragraph 3.202.2(vi) of the general armed Services Procurement regulation.5 letter Contract f090-9-C-01 In the spring of 1968, the contract provisions took effect and would continue for nearly two and a half years. on 20 September 1968 Fairchild-Hiller and Warner robins concluded another letter contract, F09603-69-C-0144, which called for the contractor to supply support and service items for the entire aC-119G/K gunship program. as with previous contracts with Fairchild, it was an open-price agreement, with details to be ironed out as work progressed and needs changed. Even so, WraMa experts estimated that the total cost might go...