DEAR MR. CAMPBELL:

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP59-00882R000200200015-8
• Release Decision: RIFPUB
• Original Classification: S
• Document Page Count: 2
• Document Creation Date: December 20, 2016
• Document Release Date: April 16, 2001
• Sequence Number: 15
• Publication Date: April 15, 1955
• Content Type: LETTER

Approved For Release 2006/10/19: CIA-RDP59-00882R000200200015-8
C HAS REVIEWED.
CENTRAL INTELLIGENCE AGENCY
The Honorable JosephCampbell
Comptroller General 41the United States
Washington, D. C.
Dear Mr. Campbell;
In the course of its bperat- ons, this A,a;ency finds that it
is expedient, economical anal in the best interests of national
security to enter into contxetual agreements with individuals
who agree to supply confiders al information and services. One
category of such individuals i ;paid a fee figured at an annual
rate and is entitled only to sii~h other emoluments as may be
specified in the contract. The itten agreement with such
individuals specifically states regard ` to the status of the
individual that"you are not an em oyee of the United States
Government under this agreement an are not entitled to any
benefits normally incident to any loyee status except as
specifically enumerated herein". On of the individuals who
has entered into such a contract with sis gency is a ommis.?
sioned officer of the United States ,r, retired on the basis
of non-combat incurred disability and such may not hold an
office or position under the United Star and eontinue`to re=
ceive retired pay in such an amount as to ake the total nay
from both sources exceed the rate of '>3, per annum. For
this reason, it is important to the Agency to the officer
to determine whether or not an individual en ring into a con-:
tract to supply confidential information and s rvices to this
Agency holds an office or position under the -Jn ted States
within the meaning of Title 5, 9 59a, United Stakes Code which
sets up the prohibition stated above.
It is the position of this Agency that Ind1vid so con?
tracting with the Agency are not employees of the U ed States
Government but hold the status of independent contrac rs. They
do not have the normal indicia. of emr~layees. The Agent does
not exercise direct control over the individual in the orm-
ance of his work; it does not provide office space or t6 s and.
Approved For Release 2006/10/19: CIA-RDP59-00882R000200200015-8
 Approved For Release 2006/10/19: CIA-RDP59-00882R000200200015-8
appliances;
out the work
supervised in
and services a
Within the lirni.
individual has no set office hours, but carries
such time as he considers expedient; he is no
is employment but merely provides such information
requested and as he finds hi-nself able to produce.
a of security regulations, he utilizes-other
s fit and these Dersons are not supervised by
persons as he se
the Agency. The
only the results
gency is interested in and attempts to direct
important security
of performance. Th
the contractor's services and except for
considerations is disinterested in his means
fee payable to the contractor is calculated
r than some other unit of measure, It is
on a time basis rath
our view that the fad
not in itself operate
position under the Gov
related services; int
that he is paid in such a manner does
o make him the- holder of an office or
ent, he is providing information and
ible items whose auality and quantity
and whose availability is subject to
cannot be pre-determined
sudden and unpredictable \ hange. For these reasons, he is paid
a fee calculated at an anr~ial rete much in the manner that a
professional consultant ma}k be paid a periodic retainer or fee
measured by time served.
It is the opinion of the Agency that such contracts with
individuals for the purchase confidential information and
related services are preferabl to ordinary employment-:contracts.
`Through this device the mover t receives a necessary service
at a reasonable cost while under ng a minimum obligation to
the contractor. Through the Eve f such contractors, the Arrency
is able to obtain a valuable a and at the same time avoid
subjecting the United States nt to tie manifold obli-
gations of the employer-employee re tionship. We feel that a
person so contracting with the Agenc fits one of the eommon
definitions of an independent coniract r, that is, "one who
contracts to do a specific piece of wo furnishing his own
assistants, and executing the work in %,r.., anee with his own
ideas, or a plan previously given to hithe person for whom
work is done, without being subject to rders of the latter
with respect to the details of the workAm. Jur.482,
Your views are requested on whether our
that, based on the facts herein stated,, the a
tractor with
within the
this Agency does not hold an office or positio
meaning of 5 U.S.C. 159a (19).
A Lle= ri. Dulles
Director
Approved For Release 2006/10/19: CIA-RDP59-00882R000200200015-8