The singular perturbation theory provides a powerful design and analysis approach for model order reduction. Another method of simplifying the calculation of feedback gains in an LQG problem is the Chandrasekhar algorithm, which replaces the usual Riccati approach. The method presented in this paper combines the advantages inherent in the singular perturbation theory with those of the Chandrasekhar algorithm. This is accomplished by using lower dimensional Chandrasekhar equations for calculating the asymptotic expansion terms of the feedback gains. Two alternative design procedures are given. In one procedure the fast or boundary layer gains are calculated first followed by the slow or reduced gains. In the other procedure a more conventional design sequence is adopted. That is, first the reduced problem is solved and the boundary layer correction terms are added later on if needed.