MINUTES OF THE PROCUREMENT OFFICERS' MEETING 3 MARCH 1969

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP74B00535R000100200028-2
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 4
• Document Creation Date: December 19, 2016
• Document Release Date: November 21, 2005
• Sequence Number: 28
• Publication Date: March 10, 1969
• Content Type: MIN

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10 March 1969
Minutes of the Procurement Officers' Meeting
PRESENT: Jo1Ln F. Blake, DD/S (Chairma--:)
1. After welcoming Mr. Blake alerted the group
to the fact that the Inspector General's review team had inquired whether the Procure-
ment Officers' Meeting duplicated or infringed upon the area of responsibility of the
Contract Review Board (CRB). In answering a firm no, Mr. Blake cited the purpose of
the Procurement Officers' Meeting as a forum for free exchange of information and
ideas on procurement matters as distinguished by the CRB's direct interest in review
of specific contractual actions. The Inspector General's team has been invited to dis -
cuss this matter individually with each attendee.
2. Mr. Blake informed the gxoup that Planning Staff, OL, has been requested to
research and review the policy for retirement of procurement records. It was empha-
sized that the legal responsibility was most important and that the policy for retirement
of such records should be consistent for each procurement team.
-viewed the status of college and university
contracti ~g Ill reference to the established guidelines . i n response to the direction of
the Deputy Director for Support, it was emphasized that all requests for contracts and
r^ 1: s witn academic institutions must be cleared with err. Blake prior to taking action.
If a requested contract calls for a classified Agency association, a written justification
from the deputy director of the requesting directorate to the Deputy Director for Suppo
Declassification Review by
NGA _ ~~ ...... ? .,, ....,.C
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Minutes of the Procurement Officers' Meeting, 3 MMarch 1969
requesting approval is also requ1-red. In addition to the Obvious direct contractual re-
lationships which fall in this category, it was noted r ha- personal service type con-
tracts with employees of academic institutions, co tracts with corporations Wit close
university ties, and other contracts where universi y students are em~;loyees, must be
reported. xplained how the report to the Deputy Director, for Support
is developed from the automated data collected for the Contract Information System.
and discussed the importance of updating that data as each event in the life of a con-
tract occurs. For example, unless completion dates are provided to the data coders
by contracting officers, technical monitors or any otter personnel closely associated
with the contract, contracts will continue to be carried as active in the system=then,
Ln fact, they are no:. To insure the integrity of the automated information system,
everyone should feel a respo risibility for providing timely and accurate data to it.
commented on the need for better security controls during the contracting
process with academic institutions. He suggested the topic be added to the agenda for
the next I
ndustrial Security Officers' Meetingg.
1
reported that the GFE survey has been completed and a final
report wa
s presented to the Director of Logistics on 28 February 1969. RecommerLda-
tions resu
lting from the review include centralized control of GFE with the Procurement
Division,
OL, and the assignment of a full-time GFE administrator at the GS-11 level.
1
reported a a the
contract review conducted by
an
d other. The purpose of the review was to scrutinize current contractual as-
pects i in, r
elation to project monitorship. The followin findings were outlined:.
a. The Agency's requirement for no nroutine missile and space analysis
0
The contractor project management is cost conscious.
C. The I
aciliy is essentially a Government captive facility.
d. There is a lack of consistent and informed teamwork among contracting
office
rs, project officers, and
F
project management. Some of the fault re-
sults
from a policy decision to administer the contract from Headquarters rather
5X1
e.
(costs were compared to costs for similar projects
5X1 atI
]
and found to be
comp
etitive.
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Mi rtes of the Procurement Officers' Meeting, 3 March x.969
f. Based on, cost and performance factors, -.o economic or technical rea-
sons indicated that the Agency's interest would he better served by any other con-
tractor .
a. Continuing Agency surveillance by project officers and their supervi-
sors to C;: terming that /ork scopes are kept free from routin tasks
that can be performed by Agency employees.
b. A single contract on a FY basis be issued to cover all tasks.
C. Arrangements be made to permit
tracts negotiated by that Office.
fac'_lity, thereby permi Ling more insight into the operation for the contracting of-
ficers and project Officer.
d. The ICAD auditor be provided with desk space within the
e. During the FY 1970 negotiation, tl.e CO should attempt to establish "on
~~ '~n the site en gi:.eering burden rates rather th~. the overall rates.
review, Mr. Blake commented on the excellence of the
1-a summarizing
I
presentation and cited the following benefits derived from t e review:
The establishment of a methodology that will be useful in future reviews.
b. The basic integrity of the findings.
C. Surfacing of the problems in fiscal funding, contract administration
. nd the need for a single contract rather than the multiplicity used today.
6. presented views on the budgeting and fiinding for contingent costs
for award fees, incentive contracts, and overrun costs. In respect to award lees, he
noted that the Agency policy is to budget for the average fee while experience indicates
that ^e award is usually'-'ig'':ier than average. ITe concluded that Agency policy should
J
he to f,:ld between average and maximum excellent to mitigate against the impact of ad-
ditional fund 4n when t: e award fee is definitized. The -fixed price incentive contract is
now targeted at target cost pluS target profit. i -Li experience factors show costs are
usually L-a excess of tarr-et, cited a report to the ASPR committee by
ceilii g
recommending `full fund ing to the
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Minutes of the Procuroment Officers' Meeting, 3 :arch 1969
of the M3 coltra.cts. ASP!e's committee reply was favorable although the Department
of Defense has noi, as yet formally ruled to comply. In regard to overrun funding, it
was suggested that an experience factor regarding the proportion of overrun costs and
final settlement costs to original estimated costs be established. further 25X1
suggested that a request be submitted to tlie` Executive Direct or-Comiptroller that for
each fiscal year a calculated percentage of funds, based on the above recommendation,
be set aside for overrruns and final settlement costs. In respect tol om- 25X1
meats on overrinZs, Mr. Blake suggested that this is a suitable subject for the CRS.
Since it pertains to the substance and management of contracting responsibilities, the
s ggestion would carry more weight if backed by the operating components. Mr. Blake
further mentioned that the timing is propitious for such a suggestion to the Executive
Director-Comptroller in view of the present tight money situation.
7. In regard to other matters:
(1) The industrial sec=4_'y investigations were going to be more
extensive and require more time .
(2) A new investigation cycle is nderway for Top Secret cleared
contractor employees.
(3) An automatic five-year termination clause will probably be put
into effect on Top Secret clearances.
special Assistant
to the Director of Logistics
employee is being reviewed by the General Counsel.
a. briefed the group on a request for a contract with a U. S.
Govern me_it employee. The request for a private contract with an Edgewood arse-
b. _oted the following revisions in the Industrial Security
policy:
t 17, 14
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