The limited evolution of RF source technology since its inception and the dependence on high voltage components for generating high power, has kept the price and size of these devices very high. The use of magnetrons to overcome these issues introduces non-linearity, poor frequency stability, inability to control phase, and a very low Mean Time Between Failure (MTBF) rate. A radically different approach that optimizes all aspects of the RF sources is therefore required. The goal of building an economic, compact yet high-power RF source, can be achieved through massive integration of highly efficient small klystron sources. These can leverage novel, cost-effective modulators, with fast rise and fall times and built with off-the-shelf electronic components. We propose such a klystron design for achieving the $2/kW goal. Our company, TibaRay Inc. is actively developing a RF component including RF sources for use in our novel medical accelerator application. These are based on recent technology developed at SLAC that involve new approaches to designing highly efficient resonant cavities and for manufacturing them. The proposed RF source will be designed to achieve 70% efficiency while maintaining a compact form factor and light weight. It will operate at X-band frequencies that area a standard for medical and industrial applications as well as for large research accelerators. In Phase I we plan to optimize every design aspect of the klystron (beam voltage, current, cathode diameter, etc). We will also simulate and study the electromagnetic, RF-beam and thermal behavior of the device. Emphasis will be placed on manufacturing ease and reliability. This work will serve as the basis for Phase II where, if approve, we will develop these concepts into commercially available RF sources. We will develop the plan for the production and sale of these devices. Starting from industrial and medical accelerators to large national and international accelerator facilities, there is a significant need for lowering the cost of the RF sources and making them light and compact. Currently, the cost of the high-power RF sources well exceeds the cost of the rest of accelerator facilities. Our proposed solution holds the promise to become a ubiquitous solution for majority of such accelerator systems.