PRESIDENTIAL MANAGEMENT INITIATIVES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79-00498A000300050005-8
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 9
• Document Creation Date: December 9, 2016
• Document Release Date: August 4, 2000
• Sequence Number: 5
• Publication Date: September 28, 1976
• Content Type: MF

r Approved For Release 2001/06/09 QIA-RDV,79-00498,Q0
*OMB Waiver Letter In ERU File*
45000540M PT
MEMORANDUM FOR: Deputy Director for Administration
SUBJECT: !Presidential Management Initiatives
2 8 S EP 1976
1. I would like to ask that the Chief, Management and Assessment
Staff, serve as focal point for the Agency's response to one of the
specific requirements included within the Presidential 'Management
Initiatives. On page 2 of the enclosure to the attached letter of
16 September 1976, OMB asks us to forward an Agency plan for achieving
travel savings in FY 1977 and FY 1978.
2. The Agency plan should describe our upcoming efforts to achieve
a high degree of efficiency in travel costs and to eliminate waste from
our activities; it does not have to show a reduction of travel costs.
Bear in mind that the plan we submit now may be the base against which
we will have to report to OMB in November 1977 on our 1977 travel costs.
We should forward the plan to OMB no later than 21 October and will need
the input from you no later than 15 October.
3. The September letter also gives us the go-ahead on reporting
required by OMB Bulletin No. 76-9, which we had been told last May by our
OMB examiner might not be required. Details of the reporting required are
contained in Supplement No. 2 of the OMB Bulletin. Exhibit 1 we understand
to be due to.OMB no later than November 1977. The report should treat 1978
like 1977--including dollar figures budgeted and planned ways of applying
the methods included in the Bulletin. My staff can provide the total STATINTL
Agency figures you will need.
4. Any further guidance on this subject can be provided by
on my staff.
ames H. Tay1br
Comptroller
Attachment:
As stated
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 EXECUTIVE OFFICE OF THE PRESIDENT
f~ppro ea ror hceiease 4gpH'4vj u mwu-raLa_tw uvvkuuwuweouuua-a
WASHINGTON. D.C. 20503
SEP 1 1976
Mr. James H. Taylor
Comptroller
Central Intelligence Agency
Washington, D. C. 20505
Dear Jim:
This is in response to the Central Intelligence Agency's
August 24, 1976 submission as part of the Presidential Manage-
ment Initiatives effort (PMI). I would like to take this
opportunity to provide you with OMB's observations and to
share with you my views on the Agency's continued, participa-
tion in this effort.
On the whole, I am pleased with the Agency's response and
commend you on the progress the organization is making in many
management improvement areas. However, I do believe that fur-
ther effort is needed and that the next PMI submission should.
emphasize specific actions and results. The attachment contains
comments on the Agency's response to the various PMI subject
areas and suggests the manner in which follow-up should take
place.
There are some PMI areas which I feel should also be addressed
by the larger intelligence community. Therefore, while the
Cent-'r-al Intelligence Agency will continue to be regarded as a
full participant in the PMI effort, my staff will be contacting
the In-_eii.igence Community Staff about how it should become
invol vd.
I do want to stress that both the President and the Office of
Management and Budget regard this effort very seriously. Your
continued interest and support are appreciated.
Sincerely yours,
Donald G. Ogilvie
Associate Director
Intelligence Community Staff
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Central Intelligence Agency
1. Decisionmaking and Departmental Organization
I. Policy Analysis Staff
;Response satisfactory. Follow-up by OMB budget
examiner as part of FY 1978 budget review.
II. MBO Program
FY 1977 and FY 1978 Agency MBO's are requested as
soon as possible to be reviewed by the COMB budget
-examiner in conjunction with the FY 1978 budget
review. OMB review of intelligence community
objectives will be pursued with the IC Staff.
III. Decisionmaking
Timetable in report is acceptable.
IV. Organizational Review
Personnel inventory discussed in 5. III does not
specify milestones or timetable for review of
layering and excessive subdivision. By October 21,
a revised plan should be submitted to include these
omissions and greater detail on plans to consolidate
sub-units and to develop guidelines for "assistant to"
positions. A statement identifying review criteria
for the personnel inventory is also requested. The
IC Staff will be asked to develop an organizational
review plan-.
2. Evaluation of Current Programs
1. Policy and Evaluation Unit
Response satisfactory. Follow-up by OMB budget
examiner as part of FY 1978 budget review.
II. Efficiency Evaluations
Evaluation plans and timetables are generally
acceptable. Specific comments regarding the ADP
efficiency evaluations will be communicated separately
by the OMB budget examiner. Identification of addi-
tional areas to be reviewed will be explored by OMB
budget examiner during FY 1978 budget review and in
discussions with the IC Staff.
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III. Management Plans
OMB guidance will be forthcoming.
3. Reduction in the Burden of Federal Reporting and Regulation
No action required.
4. Contracting Out and Holding Down Overhead Costs
1. Contracting Out
This has been identified as an emphasis area and
will be pursued by the OMB budget examiner during
the FY 1978 budget review and in accordance with
OMB Circular A-76. IC Staff involvement will be
pursued.
II. Overhead Costs
Detail is requested on the organizational location
and modus operandi of existing agency systems for
determining and analyzing overhead costs. Report
requested by October 21.
By September 21, ag/e'ncy compliance with OMB Bulletin
76-9 is requested. This response to OM should in-
clude plans for achieving travel savings in FY 1977
and FY 1978./
ADP practices have been identified as an emphasis
area. Plans for improving management of ADP re-
sources will be submitted on September 21. Supple
..rental guidance is attached.
No action required on cash management or mailing
practices. Report acceptable on reproduction
equipment. Possible further review of audio-visual
activities will be explored by the OMB budget
examiner.
By October 21, submit plan to OMB on proposed steps
to achieve savings in telephone equipment and usage.
Space utilization and records storage will be reviewed
by the 0MB budget examiner during the FY 1978 budget
review.
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NOTE: Further guidance from OMB on mailing practices,
reproduction equipment, telephone equipment and usage,
space utilization and records storage will be forth-
coming. This may involve information requirements for
the October 21 monthly progress report.
5. Personnel Management
I. Executive Selection and Development
Report acceptable. Subject will be pursued by the
OMB budget examiner as appropriate.
II. -Work Force Quality
Report plan and timetable acceptable.
III. Position and Classification Management
As indicated in item 2.IV., a statement identifying
review criteria for the personnel inventory is re-
quested. Civil Service Commission Bulletin No. 250-7
should be carefully reviewed as these criteria are
developed. Report plan and timetable, acceptable.
This has been identified as an emphasis area and will
be addressed by the OMB budget examiner during the
FY 1978 budget review. In addition, it will be dis-
cussed with the IC Staff.
IV. Productivity Measurement
Report not entirely responsive to PMI. By October 21,
a progress report is requested. This report should
also address the application of productivity measures
in supporting staffing and budget requirements and for
purposes of management evaluation and control. This
area will be pursued by the OMB budget examiner during
the FY 1978 budget review.
Employment Ceilings
Report acceptable. No further action required at
this time.
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Supplemental Guidelines
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1. INTRODUCTION
The primary objective of the ADP initiative was to encourage
activities which will reduce costs and address specific pro--
blem areas; it was not meant to stimulate the expansion of
current ADP activities. However, the inclusion of initiatives
where substantive benefits can be realized through further.
Investment is not precluded. -If an activity is identified for
which capital investments are required to realize significant
benefits the proposal should include a full evaluation of the
alternatives, the costs and benefits, and the funding require-
ments for each alternative. If this information is not avail-
able at this time the submission should include the date by
which such an evaluation will be completed. 4
All activities submitted, whether or not they require additional
capital investment, should meet the following criteria:
? Include only those items for which tangible and measurable
cost reductions or other benefits can be demonstrated.
? Include only those items where significant cost reductions
or benefits can be identified which are deserving of
Presidential attention.
? Identify the means by which cost reductions and benefits
will be measured.
Include an assessment of the budgetary impact and require-
ments of any proposals which involve FY 77 outlays beyond
those in current budget guidance, or involve FY 78 sub-
sequent resource decisions. Any initiative which recommends
the expenditure of funds which have not been previously
approved shall allow for the orderly evaluation of such
proposal in the normal budget process.
A plan: outlining the agency's approach including key mile-
stones and the dates by when they will be completed, should
be developed for each of the six ADP practices suggested.
If an agency does not believe it can realize benefits in one
or more of the six areas, a negative report outlining the
reasons why should be submitted in lieu of the plan.
II. COST REDUCTION INITIATIVES
The first three of the six PMI's were aimed primarily at
reducing cost. Examples of activites which can be undertaken
to achieve cost reductions or other benefits are identified
for each. In no way is this meant to be a comprehensive list
of possible actions.
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A. Reducing the unit- cost of data processing - Consider
items such as but not limited to the following:
? Establishing targets for increasing reimbursable sharing
of any excess capacity.
? Assure that all computer support performed for users
outside of the agency is done on an appropriate cost
reimbursable basis.
? Reducing hours of operation to those required to meet
cost justifiable workload levels.
? Eliminating marginally used equipment by relying on
other agencies or the private sector for such specia:Lized
services.
? Improve operational efficiency of existing systems or
applications.
? Shift workload to other computer systems when such
applications can be processed more efficiently on other
systems.
? Consider consolidation of operations.
? Measure the amount of ADP resources required per applica-
tion or system and allocate resources on. the basis of
value received.
? Reevaluate previous lease vs purchase determinations.
? Increase workload volume without increasing DP resources.
B. Eliminate nonessential or marginal worklaad -- Consider
items such as but not limited to the following:
? Establish a plan for evaluating the cost/benefits and
need for all existing applications.
? Evaluate the adequacy of existing processes for justify-
ing new applications.
? Establish a certification program for ADP systems and
applications.
C. Reduce equipment rental through increased competition -
Consider items such as but not limited to the following:
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 Where leased hardware is avaparty
App ~ ? sReleaOIJYq&s 7p? J?p&jM5q;r,d
to compe-
tition within the last 12 months, develop specific
plans for recompeting such leases.
? Where "plug to plug" compatible equipment is available
from sources other than the original equipment manu-
facturer -- and the agencies have not taken advantage
of lower rental rates generally available through such
sources -- specific timetables should be established
for evaluating cost reduction possible by use of such
"plug to plug" compatible equipment.
? Make greater use of broader performance specifications
to expand opportunities for greater competition.
? Consolidate procurement requirements within the agency
- particularly for terminals and minis.
III. MANAGEMENT IMPROVEMENT INITIATIVES
The last three ADP PMI's are intended to stimulate activities that
will improve the management of ADP resources. While the primary
emphasis of the cost. reduction initiatives was on economy, these
initiatives stress efficiency and effectiveness. Agency actions
in this area should be designed to achieve objectives such as
maximizing alternatives in the planning process and minimizing
operational errors.
A. Analyze the need and methods used for expanding Government
computer capacity -- Consider items such as but not limited
to the following:
? Strengthen planning processes.
? Assare that alternative approaches for:meeting needs are
objecyively evaluated.
? Mane treater use of surplus capacity available from other
agencies.
? Establish time table for A-76 evaluation.
B. Minimize the automatic comouter issuance of inaccurate or
unnecessary checks and purchase orders - Consider items
such as but not limited to the following:
? Review and evaluate all applications, procedures, criteria
and programs.
? Establish -more rigid criteria and control procedures.
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 Aplprpm @n10~di~/ - ~9~@Q O~ ion or
verification as appropriate.
0 Establish system of cross checks and balances.
? Establish audit and measurement procedures.
? Establish systems design criteria to minimize errors.
? Develop standards for system design and operation.
C. Strengthen agency ADP management to overcome problems of
computer fraud and security - Consider items such as but
not limited to the following:
? Establish timetable for independent review of the
adequacy of current security procedures for each
installation.
? Establish procedures for spot checks of processes and
facilities by independent reviewers.
? Audit processes to guard against fraud.
? Develop security guidelines and procedures to safeguard
systems.
? Review internal control procedures for each system
identified that may be susceptible to computer related
crime.
0 Establish a security office with operational responsi-
bility to safeguard systems and facilities.
? Establish a monitoring system to remain cognizant
of possible problems. `
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