OFFICE COPIERS

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CIA-RDP78-05054A000100070005-6
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RIPPUB
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K
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16
Document Creation Date: 
December 12, 2016
Document Release Date: 
August 28, 2002
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5
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REPORT
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Approved For Release 2002/09/03 : CIA-RDP78-05054A000100070005-6Attachment 2 OFFICE COPIERS 1. According to available records, concern for the uncontrolled use of copying machines in the Agency was first voiced by the Office of Planning, Programming and Budgeting (OPPB) in June 1968. OPPB developed a Copy Machine Study as an adjunct to the Agency-wide Communication Study Commissioned by the Executive Director, (DDS 68-3159). The study called attention to the rapid growth of copiers and predicted that unless some controls were established on the use of copiers, the cost would exceed one million dollars by 1972. The DD/S response to the study recognized the problem but concluded that controls over the use of copying machines must be with the Directorates. He did, however, offer the assistance of the Records Administration Branch (RAB) and the Office of Logistics, OL. (DD/S 68-3659) 2. From June 1968 to September of 1972, there was little indication that the Directorates had asserted any control over copier utilization and expenditures increased from $500,000 to more than a million dollars per year as predicted. This spectacular growth in copying volume and related cost remained the concern of OL/P&PD. However, P&PD had no regulatory power over the rental or purchase of copiers, but-rather, it has served since 1954 only as a technical advisor on requests for printing and reproduction equipment. Although RAB's services were offered by the DDS, the Branch was not assigned any responsibility for copiers until much later. Coupled with this lack of controls was the introduction of Approved For Release 2002/09/03 : CIA-RDP78-05054A000100070005-6 Approved For Release 2002/09/03 : CIA-RDP78-05054A000100070005-6 the Xerox model 4000 in August 1971 and the tactics used by the Xerox salesmen to rent it to Agency components. The Xerox salesmen had lists of Agency employees' names and phone numbers, locations of current Xerox equipment and locations of competitive copiers. (Many of the employees were under cover and some of the locations were classified.) They contacted each user directly and persuaded many to upgrade their equip- ment to the new Model 4000. 3. In November 1972, the DDS made the Executive Director-Comptroller aware of the copier problem and recommended that the CIA Records Manage- ment Board look into it and develop more efficient procedures for manage- ment of copying operations. The recommendation also stated that the management of copying operations is an appropriate function of the Office of Logistics. The Executive Director-Comptroller approved the recommendation with enthusiasm. (DDS 72-4205) 4. RAB's involvement with the management of copiers started in February 1973 when the CIA Records Administration Officer, who was also Chairman of the CIA Records Management Board, included copiers as part of the Annual Inventory of Records Volumes and Equipment. Inventories were prepared from the reports and for the first time since the OPPB study in 1968 there was a centrally located record of copiers in the Agency. 5. The next step was to review the use of each copier. Two pro- grams were undertaken to collect usage information: (1) all Xerox meter cards were directed to be sent to RAB so meter readings could be recorded Approved For Release 2002/09/03 : CIA-RDP78-05054A000100070005-6 Approved For Release 2002/09/03 : CIA-RDP78-05054A000100070005-6 prior to mailing the cards to the vendor and (2) in cooper- STAT ation with Xerox, a week-long usage survey was conducted of each copier (DDM&S 73-4172). The meter cards have been collected by RAB since 1973 and monthly volume statistics are available on most rented copiers. The survey of usage started in November 1973 and was concluded in April of 1974. 6. The DDM&S was personally concerned about the use of copiers and asked for a preliminary report on RAB's progress through 31 December 1973. A sampling was made which showed that during the last three months of CY 73 there was a decline of 11.3% in the total number of copies reproduced over the previous three months. Also, an analysis was made.of the Xerox paper consumption which showed a decline of 15.3% in the same time frame. At the direction of the DDM&S, a campaign was conducted to increase the utilization of the two-side copy feature on the Xerox Model 4000. In December 1973 posters furnished by Xerox were put on all 4000's. 7. Cost analyses were made of the various copiers and charts were prepared comparing the per copy costs of this equipment. Meetings were held with vendors to discuss possible alternatives to existing copiers. The cost charts and literature on the various types of copiers were disseminated to the Agency's Records Management Officers. 8. The use or misuse of copiers drew considerable attention during the paper shortage crisis and the Energy Conservation Programs. Reducing copier usage was specifically mentioned in September STATINTL 3 Approved For Release 2002/09/03 : CIA-RDP78-05054A000100070005-6 Approved For Release 2002/09/03 : CIA-RDP78-05054A000100070005-6 1973 on Conservation Programs, from the standpoint of energy and paper conservation. The centralization of reproduction machines and the reduction of copies reproduced were specifically spelled out in corres- pondence from the DDM&S to the Director of Logistics in February 1974. (DDM&S 74-0709 & 74-0486) 9. One major reason for the oversell and in many instances over- kill by Xerox, was the direct hard sell approach to Agency personnel from the secretarial to the Division Chief level, or for that matter to anyone who would listen. Other vendors were using the same tactics to a lesser degree and many Agency employees complained to the Office of Logistics. These complaints were about IBM and SCM as well as Xerox. The sales representatives representing these firms had names and phone numbers of Agency personnel and used every excuse to get into the offices., The main purpose, of course, was to sell or rent additional or bigger and better copiers. To overcome this problem, RAB prepared a memorandum. from the DDM&S to the Deputy Directors for Intelligence, Operations, Science and Technology and DDM&S Office Directors advising all Agency employees to refer calls from copy machine vendors to RAB and stating that potential users should not contact vendors direct. This action improved the situation to some extent, however, Xerox sales representatives continued their attempt to sell and the IBM representa- tives who had obtained Agency Badges for other purposes, were using the free access to sell copiers. The smaller vendors, SCM, Saxon, Savin, Apeco, 3M, Cannon, and others conformed to the new policy and only contacted RAB or P&PD. The situation with Xerox improved consider- ably when the sales representatives to the Agency changed in March Approved For Release 2002/09/03 : CIA-RDP78-05054A000100070005-6 Approved For Release 2002/09/03 : CIA-RDP78-05054A000100070005-6 1975, and the problem with IBM has eased since the badges were taken away from their sales representatives in April 1975. 10. In January 1974 the Chief, ISAS worked out an informal agree- ment with the Chief, P&PD for RAB to review jointly with the Systems Staff, P&PD all requests for copiers. During the period January-June 1974, RAB received 40 requests, 10 for new applications and 30 for replacements. Each request was carefully reviewed by RAB and recom- mendations were made to C/ISAS. During this same period, a review was made of existing copiers that were obviously not being used or were being misused. This review resulted in the relocation of seven existing copiers and the cancellation of contracts for six Xerox copiers. The six cancelled consisted of one Model 7000, two 2400's, one 3600 III, one 4000 and one 660. 11. A Copy Center was established by RAB, in February 1974, in Room 2E37, Headquarters Building. The Center was to be used by Support, OJCS, CRS, OIG, OL/RECD/HEB, OTR, Regulations Control Branch and ISAS. It was established as a model to test the Copy Center concept for use throughout the Agency and to evaluate equipment by RAB. Since a full report of the Copy Center has already been prepared, it will not be repeated here. The Center has proven successful and has been useful to RAB in testing various copiers. 12. In May 1974, members of RAB and the Office of Finance met with Xerox representatives to discuss testing a two-ply meter card which would result in a summary billing system for all Xerox copiers rented by STAT Approved For Release 2002/09/03 : CIA-RDP78-05054A000100070005-6 Approved For Release 2002/09/03 : CIA-RDP78-05054A000100070005-6 STATINTL the Agency. This new system offered many advantages to the Agency, so RAB with the concurrence of 0/Finance agreed to test the card for six months starting in October 1974. The Agency did not receive all of the benefits expected from the cards and related system during the test period because Xerox did not make all the changes in the billing system that were promised. Some benefits were realized. At the end of the test period in March 1975, we agreed to continue with the two-ply card because of its potential and because Xerox again promised to fulfill the original agreement. Three months after the test period there were still many problems and it was decided that RAB could not continue to devote manpower to develop a system that appeared to have little chance of success. Therefore, the C/ISAS asked Xerox to review the status of the two-ply meter card system. RAB has been notified informally by Xerox representatives that the new card will be discontinued. 13. RAB's involvement in office copying equipment management was formalized under DCI Objective A57002 which called for managing the utilization of copier/duplicator equipment, including rental and sup- plies, to achieve an overall cost reduction of 8% in FY 1975, measured in terms of FY 74 dollars. The responsibility for approval and manage- ment of office copying equipment was formally assigned to the C/ISAS by issued in August 1974. Since the reduction was to be measured in terms of 1974 expenditures, RAB had to know the total cost to the Agency for copiers and related supplies during FY 1974. To establish this data base, the C/ISAS, in a memorandum to the Director of Logistics, dated 7 Jude 1974, requested the 1974 cost figures for copiers and Approved For Release 2002/09/03 : CIA- DP78-05054A000100070005-6 Approved For Release 2002/09/03 : CIA-RDP78-05054A000100070005-6 25X1A 25X1A supplies and for a quarterly report of these same costs during FY 75. This information was not readily available in OL so the Director of OL sent a memorandum (OL4-3204) to each Deputy Director, each DDA Office Head and the DCI Administrative Officer requesting the needed infor- mation. The Plans and Program Staff/OL was assigned the responsibility of pulling this information together into a usable report. There was such an uproar from several components that the C/ISAS in a memorandum dated 12 July 1974 withdrew the requirement for the quarterly report during FY 75. This data will be gathered by other means. 14. Due to the additional copiers found during the usage survey in late 1973 and early 1974, RAB had reason to believe'that the inventories of copiers furnished in the 1973 annual Records Volume and Equipment report were not complete. To obtain a complete record of all copiers in-the Headquarters area, two actions were taken by RAB: (1) Lists of copiers currently identified were prepared '.and forwarded to the component Records Management Officers for verification, and (2) RAB personnel went to the Rosslyn area, Chamber of Commerce Building, Building 0 to take an actual inventory. Additional copiers were found and added to the inventory. 15. After RAB was reasonably sure that the information was accurate, it was punched in tab cards. With this information on tab cards, RAB could easily have copier inventories printed in various formats. The 1 July 1974 inventory was printed three ways; (1) by manufacturer, which grouped the copiers by manufacturer and model by Approved For Release 2002/09/03 : CIA-RDP78-05054A000100070005-6 Approved For Release 2002/09/03 : CIA-RDP78-05054A000100070005-6 serial number; (2) by component, which grouped the copiers by Director- ate and Office or Staff; and (3) by location, which grouped the copiers by building and room number. Copies of these inventories were furnished to Systems Staff/P&PD/OL and to the Records Management Officers. 16. Using Fiscal Year 1975 catalogs and pricing information obtained from the various copier vendors, three charts were prepared comparing the costs of the copiers; one chart compared the per copy cost of various coated-paper and plain-paper copiers used or available for use in the Agency; one showed the monthly rental costs for plain-paper copiers at various volume levels; and the other showed the monthly rental costs for plain-paper copiers with sorters. These charts also included supply costs, monthly minimums and copier speed. 17. In RAB's continuing effort to get Records Management Officers involved in the management of copier utilization, copies of the cost charts and vendor catalogs were given to the RMO's. Meetings were held with RMO's and the problem with office copiers was explained with emphasis on the fact that reproducing the copy is only the beginning of the problem. Each copy that is made is usually read, sorted, stapled, routed, mailed, analyzed, copied, filed, retired, declassified, and destroyed or preserved. 18. Several actions were undertaken by RAB to make all Agency personnel and all levels of Agency management aware of the copier problem and of the DCI Objective to reduce costs. These actions were: (1) a memorandum from the DDA to all Deputy Directors and Heads of Approved For Release 2002/09/03 : CIA-RDP78-05054A000100070005-6 Approved For Release 2002/09/03 : CIA-RDP78-05054A000100070005-6 Independent Offices dated 8 October 1974 (DDA 74-3814.) stating the problem, recommending solutions and asking that a Copier Representative be named in each Directorate to work with RAB; (2) five posters reflecting the use and misuse of copiers in the Agency were displayed on bulletin boards during the period November 1974 through January 1975; (3) articles were printed in the Records Management Newsletter; (4) a seminar on copiers was conducted at the Annual Records Management Conference in October 1974, and (5) students in Records Management Training courses were briefed on the proper use of copiers. 19. Meetings were held with the newly appointed Directorate Copier Representatives and the copier problem was discussed and solutions recommended. Each representative was provided with cost and utilization information on all copiers in their areas and were asked to review the usage and recommend changes where warranted. The changes that were recommended by RAB were coordinated with them and they were asked to help implement the recommendations. There have been almost no changes recommended by the Copier Representatives nor have they been much help in implementing RAB recommendations. Although some Records Management Officers in the components have initiated actions,-for the most part, they too have been unable to reduce their copier expenditures. 20. The failure to reduce copying cost was not due to a lack of "Top Level" support. The DCI specifically mentioned the reduction of copier expenditures in his memorandum to the Deputy Director and Heads Approved For Release 2002/09/03 : CIA-RDP78-05054A000100070005-6 Approved For Release 2002/09/03 : CIA-RDP78-05054A000100070005-6 of Independent Offices on "fighting inflation" dated 8 November 1974. And two Deputy Directors, the DDO and the DDA, wrote to their Office Heads on the same subject and both specifically mentioned reducing copying cost. Either the word didn't get to the people responsible for copier management or they do not take the program seriously. Many Records Officers, Logistic Officers, and Support Officers still request and insist on copiers without regard to cost and need. 21. As RAB got more and more involved in the billing system and with the replacement and rearrangement of copiers, it was apparent that there was still one item of information needed when communicating with the Office of Finance and Office of Logistics. The needed information was the rental number of the copier which was added to the punched cards. A printout in rental number order was added to the January 1975 inventory, and the 0/Finance and O/Logistics/Procurement Division were added to the list of components receiving the inventories. Xerox was also furnished a copy of the inventory dealing with their equipment since our records were more accurate than theirs. The1ist doesn't seem to have helped Xerox because the same incorrect information continues to be printed on bills, and other listings received from them. 22. RAB has tested or sponsored testing of several copiers that seemed to have potential :use in the Agency including the SCM 412 and 6740, the 3M Model.VQC, the Saxon Model P-50 and PPC-1, the Savin Model 300, the AB Dick Model 901, the Apeco Model 200, the Xerox Model 4500, 6500 (color copier) and 3100 LDC. The Savin, the SCM 412 and 6740, the Approved For Release 2002/09/03 : C1A-RDP78-05054A000100070005-6 Approved For Release 2002/09/03 : CIA-RDP78-05054A000100070005-6 AB Dick 901, the Apeco Model 200, and the Xerox 4500 were all rejected because they were too expensive or unreliable or both. The Saxon P-50 is a roll-fed coated-paper copier that has replaced 3M Thermofax copiers in one component and is used by two others because of the continuous roll capability. The Saxon PPC-l is a plain paper copier that has replaced or is used in lieu of the Xerox 3100 and 4000. There are 12 Saxons now used in the Agency. The length of time in use varies from two months to one year and over. These have saved the Agency approxi- mately $5,000 over comparable Xerox copiers in FY 75. The 3M VQC is a reliable coated-paper copier and is used in the RAB Copy Center, CRS and NPIC. The Xerox Model 6500, color copier, was not cost effective as a convenience office copier. The one tested has been transferred to the Graphic and Visual Aids Staff/P&PD/OL and is effectively used as a graphics tool. The Xerox Model 3100 LDC is a special purpose machine to copy large documents up to 14 x 17 inches. There are two in use; one in P&PD for galley proofs and one in Space Maintenance/LSD/OL for large drawings and floor plans. In addition to the in-house testing of copiers, RAB personnel attended showroom demonstrations of the Pitney Bowes plain-paper copier, the Dennison copiers, the 3M color copier, the 3M Model VHR, and the Canon copiers. The Canon and Pitney Bowes copiers will be tested in-house in FY 76 when they go on GSA Schedule. 23. RAB has implemented and is monitoring an Employee Suggestion that calls for the retention by key operators of illegible copies made on Xerox copiers so that credit can be. given by the Xerox Corporation. These credits are recorded on the machine meter card by the Service Approved For Release 2002/09/03 : CIAffP78-05054A000100070005-6 Approved For Release 2002/09/03 : CIA-RDP78-05054A000100070005-6 Technicians. In the past, credit has only been given for copies run by the Technician while he is working on the machine. The unsatisfactory copies made as a result of minor problems not requiring the services of a technician or those made before he arrives have been destroyed in the past. RAB discussed the suggestion with Xerox representatives and arrangements have been made to receive credit for all poor copies brought to the attention of the Xerox Technicians. To implement the suggestion and to provide an estimate of savings, RAB sent a memorandum to each key operator describing the new procedures and will record the savings for the first two months of the program. 24. RAB personnel have attended shows, demonstrations, seminars, and discussed copier management with officials in other government agencies to become as knowledgeable and as experienced as possible in copier utilization and management. The Records Administration Officer in charge of the copier program attended a three-day conference given by the Institute for Graphic Communication and a two-day seminar given by the General Services Administration. Contact was established with the personnel in the Administrative System Division, Office of the Adjutant General, Department of the Army who are responsible for reviewing office copiers. RAB was put on distribution for copies of their Office Manage- ment Information Letters and Equipment Information Letters. These publications evaluate copiers and have been helpful to RAB. Discussions have been held with members of the National Archives and Records Service who are responsible for advising federal agencies on the proper use of Approved For Release 2002/09/03 : CIA-RDP78-05054A000100070005-6 Approved For Release 2002/09/03 : CIA-RDP78-05054A000100070005-6 copiers. We have learned through these discussions that our current program is excellent. What we are lacking is the authority to enforce the concepts of the program that have been developed. 25. Several charts were prepared to show machine usage and dis- tribution in the Agency. Some charts were used for the Bi-monthly management meetings and others were disseminated to Directorate Copier Representatives. The representatives wanted still more detail on the monthly usage of each machine and the total for their respective area. To satisfy this requirement, RAB added the monthly volumes for each rented copier to the punched cards and was able to print a listing that reflected the volume for each rented copier for January, February, and March 1975. The list also provided the totals for each Directorate and the Agency. The April, May and June volumes have been added so these 'statistics are available for the six month period January-June 1975. 26. RAB has encouraged and promoted the use of P&PD services for printing long runs and large jobs. Printing jobs that are not big enough to be run on a press, but are too big to be printed in an office, can be sent to P&PD in Headquarters Building and reproduced on P&PD copiers. This will not only save the office manhours required to run the copiers, but will save the Agency the difference between an average of $.03 per copy on office copiers and $.006 per copy in P&PD. This effort had results and the Xerox Model 3100 in P&PD was exchanged for a Model 36001. The 36001 has made 954,892 copies since it was installed in August 1974. 13 Approved For Release 2002/09/03 : CIA-RDP78-05054A000100070005-6 Approved For Release 2002/09/03 : CIA-RDP78-05054A000100070005-6 25X1A 27. The Copy Center concept has been very difficult to sell to Agency managers. RAB has recommended Copy Centers for the DCI area on the seventh floor, for DDS&T in Building, for the Office of 25X1A Personnel on the fifth floor, for CRS, for NPIC in Building 25X1A 25X1A 25X1A 25X1A for the Office of Training in Chamber of Commerce Building, for the Office of Technical Services and NE Division/DDO. The results of these recom- mendations were: (1) the offices on the seventh floor would not give up their individual copiers and space was not available fora Copy Center, (2) the Center in Building was installed as planned, however, another Model 3100 not recommended by RAB was rented for use in 0 Building, (3) the Office of Personnel Center was accepted, however, an additional Model 3100 not recommended by RAB was requested for use on the fifth floor by OP, (4) the two Centers for OTR in C of C are still pending, (5) CRS would not go along with the original recommendation, but is considering other Copy Center applications, (6) the Center for OTS in South Building is operational, (7) NE Division refused to give up the Model 4000 and use their Model 36001 for all NE copying and (8) of the three Centers planned for NPIC in Building 0 one is operational, one will be operational in August 1975 and the others will be operational when NPIC's new space on the sixth floor of Building 0 is completed. NPIC is going to put in effect another suggestion made by RAB and that is to man the Copy Center with a handicapped employee. The first employee for this purpose is now being cleared by Security. 28. In September 1974 Xerox proposed that the Agency purchase the copiers that were running a high volume. The Office of Communications Approved For Release 2002/09/03 : dl ,-RDP78-05054A000100070005-6 Approved For Release 2002/09/03 CIA-RDP78-05054A000100070005-6 (OC) was asked to evaluate the proposal because of the high volume copiers in the Signal Center and the Cable Secretariat. OC rejected the proposal because of a concern about service after purchase and the fear that technological advances would make current copiers obsolete. After conversations with P&PD, RAB notified Xerox that the Agency would continue its rental policy. Early this year Xerox representatives again started talking about selling Xerox copiers to the Agency. RAB recommended that they prepare a formal proposal to present to Agency top management. On 5 June 1975 the Associate DDA, the Director of Logistics, the Chief, ISAS and an RAB Staff member went to the Xerox Training Headquarters in Leesburg, Virginia for a three-hour presentation on purchase versus rental of Xerox copiers. After considerable study and discussions between OL, ISAS and O/DDA personnel, the purchase proposal was rejected. The main reason was the fear of OL that Xerox or another company would come out with new bigger and/or better copiers that would make the purchased ,Xerox copiers obsolete. 29. During FY 1975, RAB reviewed 35 requests for copiers, 24 for replacements and eleven for new applications. Three of the new appli- cations were for the FOIA effort and two were to support the Presidential Commission and Congressional investigation task forces. Recommendations made by RAB to cancel or modify these 35 requests had a possible annual cost avoidance of $27,434. Five of these recommendations were accepted for an actual cost avoidance of $15,782. Since these actions occurred at various times during FY 75 the actual FY 75 savings is only $4,610. There are four recommendations still pending. Approved For Release 2002/09/03 : CIA1 PDP78-05054A000100070005-6 ,Approved For Release 2002/09/03 : CIA-RDP78-05054A000100070005-6 30. During FY 1975, RAB reviewed the usage of 56 existing copiers. Recommendations were made to cancel or replace 48 of these copiers for a possible annual savings of $83,659. Twenty-three of these recommendations were accepted for an actual annual savings of $48,732. Since these actions occurred at different times during the year, the actual FY 1975 savings were only $23,522. 31. Next to establishing a data base and program for managing the utilization of copiers/duplicators in the Agency, RAB's greatest accom- plishment during FY 75 was in holding the line on copier rentals. In the past, when a new Xerox model entered the market, Agency components immediately rented several, often without seriously evaluating the need. For example, when RAB started its review program there were twelve Model 7000's (the most expensive, Xerox duplicator at $675 per month minimum). Five have already been replaced with less expensive copiers and one has been recommended for replacement by a cheaper machine. Another example is the Model 4000 that was introduced in August 1971. In the first two years, there were 40 Model 4000's brought into the Agency. In July 1974, before the RAB review there were 53 Model 4000's and now there are 50. Since RAB has been involved, Xerox introduced the Models 3100 LDC, 4500 and 6500. There are only two 3100 LDC's, no 4500's and only one 6500 rented by the Agency today. 16 Approved For Release 2002/09/03 : CIA-RDP78-05054A000100070005-6