CATEGORY II - JOINT ACTION COMPLETED OR IN PROCESS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP62-01094R000500020009-3
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 12
• Document Creation Date: November 17, 2016
• Document Release Date: March 22, 1999
• Sequence Number: 9
• Content Type: REPORT

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CATEGORY II - JOINT ACTION COMPLETED OR IN PROCESS
1. RECOMMMATION (Page 12 and 13, Para. III B.5.b(1), (2) &
(3))(Cross Reference: Page 5, Para. IIl. a,b, & c); (1) The DCI
establish an Agency Logistical Planning Board under the chairmanship
of the DDS, composed of senior representation from the Clandestine
Services, Training, Personnel, Communications, Medical, Security,
the Comptroller, and Logistics, with the mission of marshalling all
the appropriate administrative offices to prepare logistical plans
for support of operations. (The initial efforts of the Board should
be directed to the preparation of those directives needed to feed op-
erational plans into the logistical planning mechanism on a secure and
timely basis.) (2) The present Chief, Planning Staff, Logistics Office
be reassigned as Special Assistant (Planning) to the DDS to serve as
Secretary of the Board, and such positions and individuals as the DDS
considers necessary be transferred from the Planning Staff of the
Office of Logistics to constitute a Secretariat for the Board. (3)
As soon as this Board is organized, the Support Committee of the Clan-
destine Services Planning Board be abolished.
STATUS: Action Completed: The principle underlying this recommen-
dation has been implemented by the appointment of a Special Planning
Assistant to the Deputy Director (Support) reflected in Agency Notice
2-No. A20-190-65, dated 26 April 1955-
XI
STATUS: Action in Process: This recommendation was forwarded to
the Office of General Counsel on 6 June 1955. This is a long range
objective and cannot be accomplished in a short period of time.
3. RECQN NDATION (Page 15, Para. III C.2.d(1)) (Cross Reference:
Page 6, Para. II The Chief of Logistics and DD /P develop and
implement procedures for ensuring that "procurement authority, when
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delegated by the Chief of Logistics to the designated official res-
ponsible for the conduct of approved Agency projects LT is exercised in
accordance with.. applicable Agency regulations unless an approved
administrative plan stipulates otherwise." (See Regulation 45-510,
paragraph 3c(4))
STATUS: Action in Process: This recommendation was forwarded
to the Deputy Director Flans on 16 June 1955. The Office of
Logistics will continue to follow up on this item so that a control
is established to insure that delegations of procurement authority
are exercised in accordance with existing regulations.
4. RECD} E2 DATION (page 16, Para. III C.2.d(2)) (Cross Reference:
Page 6, Para. II 6) The DDDS arrange for the Logistics Office to be
represented at all meetings of the Project Administrative Planning
Staff on projects having logistical implications and to review formally
such projects submitted to the PRC.
STATUS: Action Completed: Procedure has been established whereby
the Office of Logistics is represented at all meetings of the Project
Administrative Planning Staff on projects having logistical implica-
tions. A review is made to determine these implications on all projects
presented to PRC.
5. RECOMIENDATION (Page 16, Para. III C.2.d.(3)) (Cross Reference:
Page 6, Para. II Q.An appropriate report on field procurement be
designed by the Chief of Logistics and implemented by the DD/P for
those overseas stations selected by the Chief of Logistics as having
a significant volume of offshore procurement.
STATUS: Action In Process: A proposed revision to FR I5-500 has
been initiated as indicated under Item I-60. Revision will require
field stations to periodically report to headquarters all procurement
actions for items costing in excess of $100. A review of procurements
accomplished on items costing less than,$100 has revealed a headquarters
review would not warrant the time expended. Items of this nature are
subject to periodic station audits by the Auditor's Staff and any in-
fractions of existing regulations and procedures would be revealed at
that time.
6. RECOMMENDATION (Page 16, Para. III C.2.d(J+))(Cross Reference:
Page 6, Para. II 6) The DD/S, DD/I, and UD/P require domestic and
overseas units to submit to the Logistics Office either monthly reports
or copies of purchase orders of their procurement from other Government
Agencies, in order that the Chief of Logistics may fulfill his respon-
sibility of "maintaining control of all (interdepartmental) procurement..
in a manner which will provide adequate security, control and recording,
of classified procurement."
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STATUS: Action in Process: Comments reflected under i-60 and
II-6 apply equally to this reconmoendation.
`( flECONMENDiATION (Page 22 and 23, Para. III C.5.a) The Industrial
Contract Audit Branch (ICAB), Office of the Comptroller, is responsible
for administrative audit (as distinguished from post audit by the Audit
Office) of procurement contracts with private organizations. The Inspec-
tor General's Office survey of the Office of the Comptroller stated that
"there is need for clarification of the responsibilities of the Comptroller
and the Logistics Office with respect to review and audit of procurement
contracts." In late Oct., a memorandum of understanding was negotiated
between the Office of the Comptroller and the Logistics Office concerning
their respective responsibilities and authorities for procurement contracts.
While this memorandum may clarify some responsibilities, it fails to settle
basic issues. Over the past two to three years controversy has developed
between the Industrial Contract Audit Branch in the Office of Comptroller
and Procurement Division, Logistics Office, over the audit of procurement
contracts. There has been a time-consuming exchange of memoranda in each
particular case instead of face-to-face discussion and decision.
recommended that this situation be settled immediately by the DD/S.
STATUS: Action in Process: The Procurement Division and the rep-
resentatives of the Comptroller have had many discussions during the past
several months in an effort to find satisfactory solutions for their
common problems. The memorandum of understanding written in October
1954 served as a basis for development of improved audit support in
connection with the Agency contracts. As a result of these discussions
the following accomplishments have been achieved or are in the process of
achievement: (i) The Office of the Comptroller has agreed to use the
Department of Defense overhead rates, and arrangements have been made
by the Office of Logistics to obtain these rates and supporting documents
from the Departments of the Army., Navy, and Air Force; (ii) The Procurement
Division and representatives of the Comptroller and the Office of Security
have agreed to the use of Department of Defense resident or cognizant
auditors wherever they are available. Two meetings have been held with
the Department of Defense on this subject and the Department of Defense
has informally agreed to make the audit facilities of the Army, Navy
and Air Force available to CIA. It is expected that a final agreement
will have been negotiated and executed by the end of July;
The Office of the Comptroller has agreed to the utilization of cleared
CPA firms for use in auditing Government sterile contracts.
It is expected that the three accomplishments mpl~ pmts listed above
oveen llelead
to the solution of most, if not all,
Office of the Comptroller and the Office of Logistics,.
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25X1A
9. RECmomTION (Page 24, Para. III C.5.c) (Cross Reference:
Page 6, Para. II 10) Both the Procurement Division and contractors have
complained that the Industrial Contract Audit Branch's audits are un-
necessarily stringent and time-consuming. Also, there is evidence that
the Branch is auditing fixed price contracts subject to price redeter-
mination as stringently as cost plus fixed fee contracts, whereas the
Board of Contract Appeals of the Department of Defense has ruled that
the detailed audit prescribed by Armed Services Procurement Regulations
for cost plus fixed fee contracts is neither desirable nor appropriate
for price redetermination contracts. In order to obtain objective and
technically competent investigations of these allegations, it is
recommended that the ID/S arrange for a senior procurement auditor from
the Department of Defense to determine whether the Branch is imposing
unreasonable audit and accounting requirements upon contractors,
STATUS: Action in Process: As indicated in Para. 11-7 above, the
problems between the Offices of Logistics and the Comptroller have been
substantially solved. The fact that resident Department of Defense
auditors will be used, will lead to uniform audit and contract practices
between the Agency and Agency contractors. In addition, the Office of
the Comptroller has under consideration for employment, a senior
Department of Defense auditor who, it is intended, will occupy the
position of Chief, ICAB. All of these actions, together, will provide
the solutions to the problems with which the above recommendation was
concerned.
10. RECOMMENDATION (Page 211, Para. III C.5.d) As long as the
Industrial Contract Audit Branch follows its present practices, it will
continue to be understaffed and will not be able to keep abreast of the
workload. However, the use of commercial methods and auditors for
auditing government sterile task and research orders should reduce the
workload. In addition, the investigation recommended in the preceding
paragraph may result in further reduction in workload. It is recommended
that, upon completion of that investigation, the Comptroller reassess
the adequacy of the personnel strength of the Branch.
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STATUS: Action in Process: The implementation of this reconmienda-
tion is contingent upon completion of actions indicated under Para.
11-7 and 11-9. 25X1 A6a
U. IECO) NDATION (Page 24, Para. III C.5.e) (Cross Reference:
Page 6, Para. II 9) Recently a member of the Industrial Contract
Audit Branch, while visiting , showed his CIA credentials to
an unwitting employee of the contractor who is operating the facility.
Investigation by the Inspector General's Staff revealed that arrange-
ments do not exist whereby members of the Branch are required to obtain
a security briefing before visiting a contractor's place of business.
It is recommended that the Chief of Logistics and the Comptroller
establish the necessary arrangements.
STATUS: Action Completed: Effective 1 June 1955, a revised
procedure was initiated whereby members of the Industrial Contract
Audit Branch are givena security briefing by the Security Staff of
the Office of Logistics prior to visiting Station I or other contractor's
facilities.
12. RECON4+TION (Page 27, Para. III D.l.b(3)) (Cross Reference:
Page 6, Para. II 12) That in view of the extensive. service test and
working level coordination, Field Handbooks 45-450-1 and 4+5-450-2 should
be approved by the DD/S and published without further coordination.
STATUS: Action in Process: Detached Station Supply Procedure
Handbook, FHB 5- 50-2 is now being printed and should be available for
distribution to the field by the end of this month. Field Supply 45-450-1., was for
Procedures Handbook (for to the Deputy Director) (Plans) for authentication.
warded on 22 June 1955
13? RECOMMENDATION (Page 27, Para. III D.l.b(3) - Note) (Cross
Reference: Page 6, Para. II 13) That the which develop arme method of
processing proposed Logistics Regulations
the excessive time now required, and specifically will eliminate the
necessity for coordinating such regulations with each of the eight
Divisions and five Senior Staffs of the D1/P area.
STATUS: Action Completed: Procedure has been implemented whereby
working level coordination with DD/P elements on proposed Logistics
regulations is assigned to the SSA/DD/S. Formal coordination of Agency
regulations with the Deputy Director (Plans) is a responsibility of
the Regulations Control Staff.
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14. RECOMMENDATION (Page 29, and 30, Para. III D.2.d) In the
Department of Defense it is the usual practice for supply and procure-
ment organizations--and not the using organizations--to budget for all
supplies and equipment required by the using components. Assignment
to the Logistics Office of responsibility to budget for all supplies
and equipment would increase the effectiveness of the Agency's supply
system in the long run; and it is fallacious to argue that such an
assignment cannot be made because of the requirements of performance
budgeting. However, the Office should not be given this responsibility
until the deficiencies noted in this survey are corrected.
STATUS: Action in Process: A letter was submitted on 8 April 1955
to the Deputy Director Plans) nand the Comptroller asking for comments
on this recommendation. Reply dated 13 June 1955 from SSA/DD/S for the
DD/P area concurred in the Inspector General's recommendation that per-
formance type budgeting did not preclude the assignment to the Office of
Logistics of the responsibility to budget for all Agency supplies and
equipment. However, the SSA/I)/S indicated that the present system,
which provides for all Agency components to budget for their 08 and 09
needs, is the "most advantageous method for this Agency". Improvements
in the control of funds for 08 and 09 are being instituted in all DD/P
area divisions effective 1 July 1955 (FY 1956), and the present budget
responsibilities remain unchanged in I)D/P notwithstanding the Inspector
General's recommendation. Comments have not been received from the
Comptroller on this recommendation.
25X1A6a
15. RECOMMENDATION (Page 30, Para. III D.2.f) That the Senior
Representative, conduct a thorough inspection of the security
of the warehouse and take corrective action.
25X1A6a 1 ~
STATUS: Action Co -letect: The February report made by the Inspector
General on the has been received in the EE
Division. The EE Division Log Officer is taking action on applicable
portions. This report indicates a general improvement of the
conditions reflected by the above recommendation. Further action at
this time can be more appropriately handled within the EE Division.
Constant liaison is being maintained with EE Division Log Officer and
any assistance needed will be promptly rendered.
16. RECOMMENDATION (Page 31, Para. III E.4) (Cross Reference:
Page 6, Para. II 16) That the DCI authorize the Director of Logistics
direct cable and dispatch communication with the field (properly
coordinated with DD/P Divisions) on logistical matters not primarily
operational in nature.
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STATUS: Action in Process: A study has been completed in the
Office of Logistics to support the above recommendation. Decision
25X1' grant this authority has not been made at this time.
STATUS: Action in Process: The comments of the Inspector General
were forwarded to the General Counsel on 7 April 1955 for information,
evaluation, and reply. The General Counsel's reply was received on 28
June 1955? It is anticipated that final action will be taken by the
Transportation Division by the end of July 1955, after complete
evaluation has been made of the information furnished by the General
Counsel.
25X1A 18. PEC~TION (Page 34, Para. III F.3.b) (Cross Reference:
Page 7g Para- II 22) The responsibility for Headquarters mail and
courier service and the 10positions involved be reassigned from the
Office of Logistics to the Office of Collection and Dissemination.
STATUS: Action Completed - Recommendation not implemented: The #
DD/I informed the Director of Logistics in a memorandum dated 2 April
1955 that since OCD "is responsible for the receipt and dissemination
of only positive foreign intelligence information and intelligence, it
does not appear appropriate that it should be charged with the adminis-
tration of all headquarters mail and courier service". The DD/I
believes that the mail and courier service should continue to be
administered by a central support function of the DDS. Under the cir-
cumstances, this responsibility will continue to be administered by the
Office of Logistics.
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19. RECOMMENDATION (Page 42, Para. IV B.3,c) When the Branch
(Mail and Courier Branch) is transferred to OCD (as recommended in
paragraph III F) that Office should examine the justification for these
separate courier facilities with a view to combining their activities
with those of this otherwise centralized service.
STATUS: Action Completed - Recommendation not implemented: Since #
the implementation of this recommendation is contingent upon recommen-
dation covered by Item 18, no action will be taken.
20. RECONNDATION (Page l+$, Para. IV C.3.d) That the DD/S should
authorize such additional personnel as the Chief, Procurement Division
can justify to facilitate adequate contract inspection.
STATUS: Action in Process: The Office of Logistics has been
collaborating with the Management Staff in developing a study to reflect
need for additional personnel in the Procurement Division. It is anti-
cipated that a completed study will be presented for appropriate approval
within the next month.
21. RECOMMENDATION (Page 54, Para. IV D.3.c) The Chief of the
Inventory, Disposal and Special Accounts Section is the Accountable
Officer for non-expendable property at those field stations for which
Headquarters has retained property accountability. However, there is
no mechanism to ensure that he is automatically informed of the addi-
tion or elimination of stations for which he is accountable. It is
recommended that the DD/P, the Comptroller and the Director of Logistics
jointly develop such a method.
STATUS: Action Completed: A procedure has been jointly developed
between the Office of Logistics and the Office of the Comptroller that
will facilitate prompt notification to the Office of Logistics of in-
formation reflecting the accountability status of all stations. A new
format has been adopted for the publication issued by the Comptroller
that will reflect whether the station is accountable, detached, or
satellited and whether it is a Class A or Class B finance installation.
Through the medium of this publication with appropriate subsequent
changes, the Chief, Inventory, Disposal and Special Accounts Section will
be kept advised of the accountability status of all stations.
22. RECOATION (Page 55, Para. IV D.3.e) It is recommended
that the DDS authorize two additional positions -- one professional
and one typist -- for the Special Accounts Section.
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STATUS: Action in Process: A workload analysis is in process in
order to justify a request for these two positions. However, this
study has been extended to include all of the activities of this section.
The final outcome of the study is contingent upon the organizational
position of certain Board of Survey functions, currently assigned to this
Section. In this regard, a request to establish a Headquarters Board
of Survey secretariat consisting of one GS-12 Logistics Officer and
one GS-5 Clerk-Steno under the supervision of the Chairman of the
Board, the Deputy Director of Logistics, has been forwarded to the
Management Staff. If approved, this secretariat will assume the Board
of Survey functions currently assigned to the Inventory, Disposal and
Special Accounts Section, and the need for establishing the two
additional positions as recommended will be re-examined.
23. RECONIl'+IF ITION (Page 64, Para. IV E.4.a) That the Chief of
the Passenger Movement ranch exercise more active technical super-
vision in the form of periodic audit of the activities of Central
Processing Branch.
STATUS: Action Completed. Every effort is being made to exercise
supervi of the transportation activities of the Central Processing
Branch on a continuing basis.
240' RECOMMENDATION (Page 71, Para. IV F.2.f) That this Division
(RE&c Div)' worsting with General Counsel, attempt to obtain authority to
provide funds for meeting the travel expenses of dependents of Division
employees on long tours of temporary duty overseas.
STATUS: Action,Co leted. Recommendation not'iWemented. It #
was established at the /S Staff Meeting on March 1955 tat travel
of dependents of employees on TDY should not be at the expense of the
Agency. Based on this position, no further action will be initiated
by -the Office of Logistics.
25. RECOMOMATION (Page 71, Para* IV F.2.g) That the DD/P and
the 'DDS take necessary steps to ensure that RECD is fully informed
as to the pertinent facts respecting all Agency holdings, whether
foreign or domestic, operational, proprietary, or subsidy.
STATUS: Action in Process. This recommendation was forwarded
by letter to the Chief., Commercial Division. Subject is under considera-
tion by the Commercial Division.
26. REOM40MTION (Page 72, Para. IV F.4.e) That the DD/P
enforce current instructions which require prompt notification of
changes in the status of employees.
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STATUS: Action Completed: This recommendation was forwarded by
letter to the Deputy Director Plans). Reiteration of existing instruc-
tion was disseminated by DD/P Notice 40-310-31 dated 24 May 1955-
27. RECOMMENDATION (Page 71+, Para. IV G.2.b (3)) That the
Agency's Printing Advisor, in cooperation with Staff CI/DDP, inventory
all TSS and other DD/P operational printing and reproduction facilities
and programs with a view to their centralization under Printing and
Reproduction Division direction.
STATUS: Action in Process: Meetings have been held by representa-
tives of TSS and the Office of Logistics for full discussion of problems
involved and development of lines of responsibility. A detailed study of
European field printing facilities and problems is being made at this
time on a field trip by representatives of the Office of Logistics. A
similar study on Far Eastern facilities and problems is now being completed.
It is anticipated that these studies will further clarify TSS and Office
of Logistics responsibility for field printing. Regulations on field
printing will be developed on the basis of these findings.
28. RECOMMENDATION (Page 75, Para. IV G.3.b) If the DD/P and
the DD/S establish senior officers responsible for coordinating the
printing and reproduction programs of their various subordinate offices,
these two Deputies and the DD/I might find it useful to have their
officers charged with printing and reproduction problems constituted
as an Agency Printing Advisory Committee with representation from
Training, Communication, and Personnel. The principal task of such
a committee would be to assist the Printing and Reproduction Division
in understanding and undertaking the various consumer requirements
which give the Division its work.
STATUS: Action in Process: This recommendation will be placed into
effect as soon as DD /P printing officers are designated. Action has been
initiated but not completed by M/P as shown under Item 1-68.
29. RECOMMENDATION (Page 76, Para. IV G.3.e) That OCD's respon-
sibility to control and manage the distribution phase of the intelligence
process be reaffirmed and that no distribution be made by the Printing
and Reproduction Division unless it is demonstrated to the Division by
OCD that time and distance factors absolutely require.
STATUS: Action Completed: Agreement between OCD and Printing
Services Division regarding initial distribution has been reached and
is now in effect. Under this agreement Printing Services Division is
making some additional distribution; OCD will continue to handle all
supplemental distribution as well as the initial distribution agreed
upon.
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30. RECOMMENDATION (Page 75, Para. IV G.3.a) The six LID/S
Offices should be similarly coordinated, preferably by the Agency's
Printing Advisor serving as a Special Assistant to the DD/S.
STATUS: Action Completed: DD/S Notice No. 20-190-1, dated
10 May 1955, appointed a representative of the Management Staff to
serve as I)D/S Printing Officer.
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