(Signed) L. EDWARDS, Director, ARLINGTON HALL STATION, Bogotá, CO 80104 4Q0. On or about February 1, 1962, a contract covering the procurement of a set of radio frequency (RF) transmitters for Army and Air Force radar applications was awarded to the McDonnell Douglas Company, Fairfax, Virginia, under the specifications set forth in AR 10-1-45. The contract also included a provision requiring that the contractor furnish a complete system configuration database on the RF transmitters when the contract was concluded. This contract has long been available to members of the Senate Committee on Governmental Affairs. 559 558 ANNUAL REPORT SMITHSONIAN INSTITUTION, 1953 THE COMPANY'S PROPERTY MANAGEMENT PLAN As a part of its overall financial management plan covering 1962, McDonnell Douglas stated to the staff of the Government Accounting Office that it intended to use a combination of debt financing, cash advances from the company's operating accounts, and its own funds for a number of capital expenditures during 1963. The financial plan provided that, during the year, the company would issue 3 million in bonds representing an outstanding balance on loans made to the company during 1962, and would make cash advances of 1 million into its operating account. The plan also suggested that, through the issuance of 3 million of bonds, McDonnell Douglas would be financing 200,000 in debt service against an underlying balance on a term loan of 2.75 million. 6 The company's general credit facility (GCF), which has a term of 5 years, was also used to finance part of its debt service against the two-year GCF. The GCF permitted the issuance of 750,000 of common and preferred stock in the company and provided for all interest due on the GCF; however, all dividends were declared to be paid out of the company's cash funds. The GCF has a limited term, which began at a level equivalent to the term (2) of the bonds issued, and is payable at a rate equal to 60 % of the Treasury discount rate of the time.
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UNCLASSIFIED 2 AD 8 3 558 4Me ARMED SERVICES TECHNICAL INFORMATION AGENCY ARLINGTON HALL STATION ARLINGTON 12, VIRGINIA UNCLASSIFIED NOTICE: When government or other drawings, specifications or other
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