CATEGORY II - CONCUR, JOINT IMPLEMENTATION REQUIRED AND IN PROCESS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP62-01094R000500020018-3
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 10
• Document Creation Date: November 17, 2016
• Document Release Date: March 22, 1999
• Sequence Number: 18
• Content Type: REPORT

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CATEGORRY II - COITCJR JOlITT II 'LEI,IEITTATIOI Ei,UIT D AID ITT PROCESS
1. PECOT??10-4`DA`.-W.(P : e 12 and 13, Para. III B. .b(l), (2)
ra P~ III.a b wc) (1) The DCI
( ) ) (Cross Tteference: ara., , 3
establish an Agency Lo ist al Pla.nnin- Board under the c hairil',ansllip
lm i
of the DD;'!u, composed ~ of senior representation from Clandestine
Services, Trair_inG , Personnel, ComrT?nications, i.,edical, Security,
the Comptroller, and Logistics, with the mission of marshallin all
the appropriate admiristrativ offices to prepare to -istical plans
for support of operations. (1'he initial efforts of the Board silo-Lila
be directed to the preparation of those directives needed to feed o;p-
erational plans into the logistical plannin` mechanism on a secure and
-.r le Chief, Pianniil; Staff, Lo`isticS Office
timer basis.) ( ) Ti !
reassi; Special Assistant (Pla.nnin ) to the DD, S to serve as
be ned as
Secretary of the L02,rd, c^;.nd such positions and individuals as the DD/b
considers naocessar;' be transferred from the Planning Staff of the
Office of Loaistics to constitute a Secretariat for the Board. (;)
As soon as this Boar c! is or;,^.nized, the Support Cornaitte- of the 0inr -
destine Services Plennin Bocrd be abolished.
CO1 t Ti : Concur 0: Apart in this recormendation. The Officc,
of Lo istics Will co-ntribtth as required toward the establislunent of
PlanninC Board as proposed in this recommendation and in accordance
with tle provisions of CIA i:Totice 1-100-1 dated 3 February 1955 and
,
memorandum from the iDCI to nll major components dated 3 February 1055
subject: Ad.nl:Lnlstrati.On of the Clandestine Services. TTe-otiations
are presently beinconducted toward the establishment of such a mech-
anism under DD/ /S control. ~_'?le Office of Lo;,;isti.cs will furnish re?ro-
sentation on full time basis.
2. p?COI-In DATIO11 (Pn :o 14, Para. III C.1. c) Inasmuch as Con-
-mss did not specifically 'e::tend -co the Agency the authority to
nefotiate research and development and standardization contracts, CIA
may be o;`lerx to cri ticismi (:)i,y Corl`;reSS in reslD011se to a complaint by a
it ~
ydisZruntled potential supplier) for justifin such contracts under
other provisions of the Act. Therefore, it is recormlended that the
General Counsel deterrmincc whether the Agency should obtain t' _le
authorities of the Armed Services Procurement Act to negotiate both
standardization and research and development contracts, bearinh in
mind that the latter autlority must not be encurfoered with the proviso
of the Armed Services Procurement Act WliCh requires a semi-annual.
report to Conwress of each ne otiated research and development con-
tract.
COII1 : ': Concur in this recommendation. Action will be taken
by the LoL isti.CS Office to forward this r ecoT' mendation to General
Counsel and insure that proper follow-u-l is maintained. It should be
noted that the statutory autilori_tr recuired in this recommendation
was recyuested from the General Counsel by the Director of LO`?istics
on 20 October 1953?
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3. RECOI ENDATION (Page 15, Pare.. III C.2.d(1)) (Cross Reference:
Page 6, Para. II o The Chief of Logistics and DD/P develop and
implement procedures for ensuring that "procurement authority, when
delegated. by the Chief of Logistics to the designated official res-
ponsible for the conduct of approved agency projects is exercised in.
accordance with..applicable Agency regulations unless an. approved
administrative plan-stipulates otherwise." fS-ee Regulation. 45-510,
paragraph 3c(417
COMMENT: Concur in-this recommendation. The Logistics
Office will initiate action. with the DD/P to establish a control to
insure that delegations of procurement authority are exercised in
accordance with current regulations. This recommendation will be
forwarded to the DD/P for comment and. recommended course of action.
4+. RECOMMENDATION (Page 16, Para. III C.2.d(2)) (Cross Reference:
page 6, Para. II The DDS 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.
COMMENT: Concur in this recommendation.. Recommendations
to insure that the contents of this recommendation are fully implemented,
will be developed and.forward.ed through the DDS to the DD/P for comment
and. approval. It is anticipated that this function. will be performed
by a representative from the organization component evolving from the
consolidation of the Technical Review and: Policy Staff and the Assstant
Chief for Operations. The individual performing this function will
insure that a formal review of all projects submitted to PRC will
be conducted..
5. RECOMMENDATION (Page 16, Para. III C.2.d.(3)) (Cross Reference:
Page 6, Para. II 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.
COMMENT: Concur in. this recommendation. A procurement
report has been. developed and. will be tested at ten principal locations
overseas. This report is designed. to facilitate complete headquarters
review of all procurement actions. The implementation of this program
is on.a test basis but will be applied to all overseas locations upon
successful completion. of these service tests. It should. be noted. that
personnel are not available within. the Procurement Division., Logistics
Office to perform this function at the present time. It is anticipated
that a study outlining personnel requirements and functions to be
performed will be submitted to the DDS for review and approval in-the
near future.
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6. RECOMMENDATION (Page 16, Para. III C.2.d.(4)) (Cross Reference:
Page 6, Para. II 6) The DDS, DD/I, and DD/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 5nterdepartmentag procurement..
in a manner which will provide adequate security, control and recording,
of classified. procurement."
CO1, NT: Concur in this recommendation. The Logistics Office
will develop corrective measures concerning this recommendation and
transmit to the DDS, DD/I and DD/P for comment and approval. It should.
be noted that et the present time, reports are being received from field
stations which indicate support rendered by the military. These reports
are utilized primarily for reimbursement purposes and do not cover the pro-
curement of any items from other government agency on a local purchase basis.
7. RECOINDATION (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. It is
recommended that this situation be settled immediately by the DDS.
COMMENT: Concur in. this recommendation. This recommendation
will be forwarded to the Comptroller for comments. In. view of the fact
that this recommendation is directly related to other recommendations of
this report, a complete review of the working relationships between.ICAB
25Athe Procurement Division, Logistics Office will be re-evaluated.
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9. RECOMMENDATION (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 DDS 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.
COIENT: Concur in this recommendation.. The Logistics Office
will forward this recommendation to the Comptroller for comment and
concurrence. Upon receipt of this information, request will be forwarded
to the DDS recommending approval for the utilization of Department of.
Defense procurement auditors in. conducting detailed study of the
auditing and accounting procedures presently utilized in conjunction
with fixed. fee contracts.
10. RECOMfNDATION (Page 24, 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 in.vestigation.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.
CONVENT: Concur in. this recommendation. This recommendation
will be forwarded to the Comptroller for comment and appropriate action..
25X1 C4a
,1~1. RECOMMENDATION (Page 24, Para. III C.5.e} (Cross Reference:
r . _ T:N.-- TT h
Audit Branch, while visiting
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.
25X1A6a
COTNT: Concur in this recommendation. The practice of
briefing Logistics Office employees prior to visits to - has
been in effect for some time: However, this Office will forward this
recommendation to the Comptroller and indicate that a similar type
procedure should be established for all Comptroller personnel visiting
this area.
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12. RECOMImDATION (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 45-450-2 should
be approved by the DDS and published without further coordination.
COMMENT: Concur in this recommendation. Follow-up action to
insure immediate publication of these Handbooks will be conducted by the
Logistics Office. It should be noted that these Handbooks are in. process
by the Regulations Control Staff.
13. RECOMMENDATION (Page 27, Para. III D.l.b(3) - Note) (Cross
Reference: Page 6, Para. II 13) That the DDS develop a method of pro-
cessing proposed Logistics Regulations which will materially reduce 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 DD/P area.
COMMENT: Concur in this recommendation. This recommendation
will be forwarded to the DD/P and the Regulations Control Staff for
comment and course of corrective action.
14. RECOIL ENDATION (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 Agencyts 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.
COM ENT: Concur in this recommendation. During the past three
years the Logistics Office has .made considerable progress in securing
realistic requirements for advance janning; however, no materiel require-
ments planning has been formulated to the extent whereby the Logistics
Office can determine a realistic materiel budget. When logistics planning
has been fully implemented throughout the Agency the Logistics Office
can assume this budgetary responsibility. It should be noted that when
this responsibility is assumed, it is anticipated that Comptroller-type
personnel will be required. This recommendation will be forwarded to
DD/P for comment.
25X1 A6a
15. RECOI' NDATION (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 25X1A6a
COMENT: Concur in this recommendation. Action will be taken
to forward a dispatch to the Senior Representative, requesting
that this inspection be conducted and corrective measures taken..
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I)Al~IQE (Page jl, Para. III E.h) (Cross Reference:
Pars II a `Mist tae DCI authorize the Director of Lo Asti cs
!_ Ct ca* le and dispatch communication with the field (properly
coor ddina,tetl with DD/P Divisions) on lo"istical matters not :l~rlmar lly`
o J 3i8:Gior.ial in nature.
C01,11,12,72: Concur in this recommendation. 'A study was subllittcd
to the DCI throu h the DD/`S on 2 March 1951 reciuestin that the Logistics
Office be authorized- to direct cable and dispatch communications to
field activities on logistics matters. It is understood that this stud]
is in process of review by the P ana(gement Staff. Follow-up action will
uo initiate(.! concerning this r ccom?Iendati on. 25X1 A
01 _WLu
., c.LoutCot?ul_ if the Agency court es -s isn proo1
necessity for the extra runs.
C'OI? a'NT: Concur in this recommendation. It is recognized
that the o-oeration of the shuttle bus as indicated in this recommendation
is suu jet" to. continued. evaluation. This recommiendation will be for-
warded to the General Counsel for further stud-. It should be noted_
that )revious opinion of the General Counsel is that the .present
se vice is within current laws and directives.
J.u. 1:COY YiDAiIOi (Pane ji, Para. III F.3.r) (Cross Reference:
Page Para. II -2 'J.'he responsibility for 13eadcluarters mail and
courier service and the 53 positions involved he reassigned from the
Office of Lo istics to the Office of Collection and Dissemination.
CON-MUT: This recommendation will be forwarded to the Office
of Collection anti. Dissertiljat?.on for comment.
19 . x' X01 Z i ,vDA'i'I01d (1 e ~-2, Para . IV B. J . c) When the Branch
(i. i l and Courier Branch) is transferr c'd- to OCD (as recommended in
paragraph III F) that Office should examine the justification for these
seIaratte courier facilities with a view to combining their activities
with those of this otherwise centralised service.
- u -
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CGT"Ttti`iri': Concur in this recommenution, e,,,- c where Aenr_y
This
components can justify full time individual courier services.
C COrl[:1er1CX'3 Gior1 will be forwarded to OCD for examination of the jus of ica-
tin. of Sena rate courier services.
) That the DI) ,S should
' . ii;CO11 3~ ' D~TIO (Pat=c 1(-3, Para. IV C. 3 '.d
authorize such additional personnel as the Chief, Procurement Division
can justify to facilitate adequate contract inspection.
C014, M41-0: Concur in this recommendation. A study will be
)renal"ed collcernin{ personnel requirements to perform tills function
and- forwarded to the DD/'S for approval.
=21 1t~CUT17 NDATIUI, (Pale 5)!, Para. IV D.3.c) The Chief of the
Inventor ', Disposal and Special Accounts Section is the Accountable
Officer for non-e-mendafule property at those field stations for which
_ 1ad,,uarters has retained p)roj erty accountability. However, there is
no mechanism to ensure that he is automatically informed of the addi-
t:Loin or elimination of stations for which he is accountable. It is
l:ecoiimiendca that the DD P, the Comptroller and the Director of Louistics
jointly develop such a method.
COT1MtDT: Concur in this reconmiendati0i This recQr ielidation
-w.Till be forwardea 'co the DD/P and Comptroller for comment. Follow-up
will oe maintained by the Lo istics Office to insure complete irinleitenta-
t_Orl.
?',FCUT ii1fDATIOi (Pace 5 , Para. IV D.j.e) It is recommended
that the i)U' S authorize two additional positions one professional
Luid one Ipist -- for the S"uecl.al Accounts Section.
'GT-iiZ'1 `1': Concur in this recommen .ation. A Study justifyillL;
two additional positions for the Special Accounts Section will be
_;lrep`.red and forwF re eCi to the DD%S for approval .
14 (Pa e 6L , Para. IV L ? L~ ? a) That the Chief
T.
DX2JO
of the Passenger Movement Branch exercise more active technical super-
vision in the form of periodic audit of the activities of Central w
pl ocessin;: :Branch.
COZ11"MT: Concur in this reconmiendatioll. At the request of
hO `JiSt,:.CS Office, the Central Pr oceSS i n Branch under the Assistant
t'ac
l)! rector for Personnel is now furnis fin the Passeid-er 14ovement Branch,
'i';- ri,CLatioln Division with certain statistical information Which will
y)p.
!LU -Le the Passer ,er hovemel_t Ur nch to exercise a more active control
n . audit o ? the activities of the Central Processin_; Branch than _1eere_-
tof ore. It should be notes-, however, that cons hde':: atiorl should be
to eventually 'era 11Sfcl'r irl this -phase: of Central ProceSSiih
1,r nch' s function to the Transportation Division.
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;Z _:,COIM ITDATION (P.).--e 71, Para. IV F.2.f) That this Division
(_ C'Drrori:in.- with General Counsel, attempt to obtain authority to
provide funds for meetin! the travel e_:-penses of dependents of Division
ei io-'-ees on long tours of temporary duty overseas.
COIIiiEET: Concur in this recommendation. This recommendation
alon with Logistics Office suggestions will be forwarded to the General
Counsel requestin" assistance in establishing funds to meet this
reouir ement .
1, ICOI1
72
TD.ATIOIT (Pare 7l, Para. IV b'.2.) That the DD;~P
n.1d. the DD; cake necessary steps to ensure that 1E&CD is fully informed
as to the pertinent facts respecting all Agency 1oldin s, whether
foreign or domestic, opera tionl, proprietary, or subsici;;r.
COH, T.: Concur in this recommendation. This reconiniend.ation
will be forwarder? to the DD'/P through the DD/S for comment. It should
be noted that in most instances required reports are being submitted
to the Real Estate and Construction Division.
166.2ECO11]"'.IIDATIOII (Page '(2, Para. IV F.21-.c) That the DD, ~P
enforce current instruct lons which require prompt notification of
C._lza.n es in the status of emmoloyees.
COI-Z?l~2-:IT: Concur in this recommendation. This recommendation
will be transmitted to the DD/P through the DD/ S for comment and
corrective action required.
2'(. _: E Ot. DATIOT; (?a ;e 74 , Para. IV G . 2. u (3)) That the
Agency' Printing; Advisor, in cooperation with Staff CI/DDP, inventory
all TSS and other DD/`P omerational printin and reproduction facilities
and pro ~;r ms with a view to their centralization under Printing; and
2_-roduction Division direction.
'OI.iL 'TIT: Concur in this recommendation. A study will be
y>repared and forwarded through the DD/S to the DD'P out_linin a
vprocedurc for conducting this inventory. Follow-ups will be maintained
by the Logistics Office.
'U . ~ECOI=a1 {D~~TION (Pag,e Para . IV G.". b } If the DD/P and
the DD/S establish senior officers responsible for coordinating the
printing and reproduction pro ;rands of their various subordinate offices,
these two Deputies and the DD/I might find it useful to have their
o ficers charged with printing and reproduction pro:~lems 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 understaiAin ; and undertaking the various consumer requirements
which give the Division its work.
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~Ui Lai-': Concur in this reconmrzendc?t:Lon. The Lay-istics
Oi? 'cc, bcii VG'S~~hat such such _ a committee could be beneficial in ar ri vin
nt solutions to various Ynr ntinc; and reproduction problems.
i COI ?DATIO141 (Pa -e -'6i Pc:.^r "
~ u IV G-3.0) T iln c t C)C!J'o I'eS!:JOT1~.s
1-
b Llit to control and r.~an ;e the distribution phase of the intoIlience
process be rea?Timmed and that no distribution be made the Prin"ti l' ;
and Reuroduction Division unless it is demonstrated to tune Division
by OCD that time and distance factors absolutely rectuire.
0O11, DTI: Concur in this recorarlendation. A staff stud;.- is
in process which all real irm the r el.^a',tions :"li:i1S with the Of :i ce of
Jollecti_on and Dissemination on distribution matters.
COi IDA''IO1: (Page '(5, Para. IV G.3.,,.) The six 1
~D S
Of 'ices s ioul.d be similarly coordinated, preferably by the Agency' s
t'rJ.nti11 : Advisor servin,-; as a Special Assistant to the DDB'S.
.x01.121-IT: Concur in part in this recommendation. The
Office of Lo..j sties concurs in the basic recommendation that the DD,.. ,S
c: esihnate an officer to coordinate printin ? reauireraents for the
other or; anizational con. onents within the DD/S. Tile Loz istics
Office does not concur that such coordination should be ',1i i'j'OrYi ed
i . the AgeY1c4, ' s Printing- Advisor acting as Special Assistant to the
DD1 S as it would unnecessarily constitute a handicap in the oev orm
ante o other and more vital functions. In addition, as reflected
__sewYic re in this _ port ( sea Cater'or, IV, Item L) the Office of Lo''1.
tics has indicated that the A:;ency's Prir_tinr? Advisor should not
>;o cuss :yned as a Special Assistant to the DD:/S. It should be noted
that the already constituted Drintins.- coordinator for the DDT has
DD/
;.tot functioned too uffectivel ;; in the past but it is anticipated
diet additional develo_amont of these services can be brou ;2lt about
the Future.
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