The letter is in response to a conversation about negotiations with private contractors for the operation of the Chilocco Indian School. The Bureau of Indian Affairs has been instructed to hold off on any further consideration of contracting with a private organization for the school. There have been no formal negotiations with a prospective contractor, only exploration of the feasibility of a contractual arrangement for the school on a pilot project basis. The Bureau is interested in how a private contractor might operate the school with more flexibility concerning salaries and employment.