EMPLOYMENT OF RETIRED PERSONNEL AS CONSULTANTS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP59-00882R000200200078-9
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 2
• Document Creation Date: December 20, 2016
• Document Release Date: April 16, 2001
• Sequence Number: 78
• Publication Date: September 29, 1954
• Content Type: MF

Approved For Release 2006/10
OGC HAS REVIEWED.
59-00882 R000200200078-9
2 q ~i 0i 04
M MO1tANDUM FOR: General Counsel
SUBJECT: Employment of Retired Personnel as Consultants
1. This Office has just had called to its attention 28 Comp. Gen.
381, wherein it is stated
"The provisions just quoted (referring to Section 212 of the
Economy Act) uniformly have been held by the accounting
officers of the Government to apply to retired officers of
the Army and the Navy, not otherwise excepted therefrom,
who serve under the Federal Government in a temporary, part
time, or intermittent status and who are paid upon a time
basis. See 19 Comp. Gen. 391 and decisions cited therein.
Also it has been held that such a retired officer, if
employed solely in an advisory capacity - such as for con-
sultation purposes only - and paid upon a fee basis for
each such consultation, is not holding a 'civilian office
or position' within the meaning of that phrase as used in
the said section 212 and that by reason thereof such officer
is not subject to the restrictions contained therein,"
2. With very few exceptions, consultant contracts entered into
between the Agency and retired personnel of all categories (military,
Foreign Service, and regular civil service annuitants) have been on
the basis of a stipulated sum of money "per day of service", as dis-
tinguished from a stipulated sum "for hours actually worked." Thus,
the intent and practice has been to pay the stipulated stun for any
day during which the consultant renders the service for which he was
retained. It is of no consequence whether he is employed 1, 3, 5, 8,
or more hours during the particular day - the sum paid is the same.
Therefore, it appears to us that with the exception of those few
individuals whose contracts specify "for hours actually worked" the
Agency may properly view these consultants as being employed on a
"fee" basis.
3. It is believed that for your Office to render an official
opinion on this matter will serve to clear up a situation which has
been somewhat confused during past years, Specifically., we would
like for you to consider the application of the cited decision, or.
Approved For Release 2006/10/19: CIA-RDA' - 82R000200200078-9
 Approved For Release 2006/10/19: -CIA-RDP59-00882 R000200200078-9
any other decision ]mown to you, to the three classes of retired
personnel with which we deal, While we recognize that in many
instances a legal determination might properly rest only upon a
complete examination of all the facts in a particular case, a state-
moni.
Ass s an Director for Personnel
Approved For Release 2006/10/19: CIA-RDP59-00882R000200200078-9