AGENCY RELATIONS WITH THE U.S. BUSINESS COMMUNITY: RECOMMENDATIONS OF THE INSPECTOR GENERAL

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-00473A000200140026-1
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 6
• Document Creation Date: December 14, 2016
• Document Release Date: May 29, 2002
• Sequence Number: 26
• Publication Date: August 11, 1977
• Content Type: MF

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11 AUG 1977
MEMORANDUM FOR:
Assistant for Information, DDA
FROM:
James H. McDonald
Director of Logistics
SUBJECT:
Agency Relations with the U. S. Business
Community: Recommendations of the
Inspector General
REFERENCE:
(a)
(b)
Memo dtd 27 Feb 77 to Multiple
Addressees from A-DCI, same
subject (ER 77-011/3)
Memo dtd 9 Mar 77 to D/L and D/Pers
from AI/DDA, same subject
(c)
(DDA 77-1310; OL 7 1113)
Menio dtd 30 Mar 77 to AI/DDA from
D/L, same subject (OL 7 1382)
1. Reference (a) provided approval or disapproval on
IG recommendations included in the subject November 1976
inspection report as well as certain instructions for action.
Reference (b) requested action by the Directors of Logistics
and Personnel and feedback to facilitate a consolidated reply
on behalf' of the DD/A. Reference (c) reported progress as of
that date and discussed Office of Logistics' plans for satisfy-
ing varicus IG recommendations. Action recommended in the
subject report and approved by the A-DCI has now been completed
for all items assigned to this Office. Paragraphs which fol-
low summarize actions completed.
2. Recommendation 3: That CIA commitment to the principle
of competitive contracting be reaffirmed, beginning with a
policy statement from the DCI.
Approved: The DD/A, in coordination with the
DD SFT, should. submit a statement for my
approval within 60 days which is appropriate
for inclusion in Agency regulations.
OL 7 3596
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SUBJECT: Agency Relations with the U. S. Business
Community: Recommendations of the
Inspector General.
An appropriate policy statement was distributed
Action: Action is complete on this recommendation. STATINTL
by the DDCI and also incorporated into
3. Recommendation 4: That OL review all existing training
and find new ways to emphasize the legal basis, the desirability,
and methods of promoting competitive contracting, and that both
contracting officers and requirements officers be exposed to the
training.
Approved: The DD/A should. submit a report to me
on the findings and action taken.
Action: Reference (c) outlined a plan of action
for satisfaction of this recommendation which
called for establishment of a new training
course to cover preparation of RFPs and source
selection. We have performed additional review
of this matter and have concluded that existing
communication channels are excellent for promul-
gating information on the competitive process.
Utilization of these channels coupled with
slight enhancement of our Project Officer in
the Contract Cycle course will achieve desired
results and avoid the expense'of establishing
a new training program. Based on actions
described below, we consider-our requirement
on this recommendation complete.
A Procurement Policy Panel was established
in 1970 by the Director of Logistics which
includes as members the Chiefs of the various
decentralized procurement elements and the
Chief and Branch Chiefs of the Procurement
Division in OL. The Chief of our Procurement
Management Staff chairs this Panel. The panel
examines and evaluates existing Agency pro-
curement policy and recommends to the Director
of Logistics ways of clarifying, improving or
revising such policy. The importance of competi
tion and methods for improving same have been
discussed by the Panel and will continue as
priority matters for attention by the Panel.
Approved For
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SUBJECT: Agency Relations with the U. S. Business
Community: Recommendations of the
Inspector General
A draft of an updated revision of Headquarters
has been
prepared and is in the hands o- the DDA Regula-
tions Control Branch for Agency-wide coordination.
The policy statement from the DDCI which affirms
the commitment of CIA to the principle of competi-
tion in contracting has been incorporated into the
revised handbook. Also incorporated are chapters
on source selection, evaluation of contractor
proposals, and source evaluation which are consist-
ent with current applicable procurement law. The
language in these chapters emphasizes the legal
basis, the desirability and methods of promoting
competitive contracting, and requires exposure and
involvement by requirements and contracting officers
alike.
Discussions have been held between the Chief of
my Procurement Management Staff and the OTR admin-
istrator for the Project Officer in the Contract
Cycle course regarding possible changes to provide
more information on the competitive process. They
have concluded that the course as presently con-
figured will do the job but that instructors should
place additional emphasis on the competitive process
as defined in the update of the Procurement Hand-
book. One proposed revision'is to shorten the
course from five days to three days to make it more
attractive to greater numbers of requirements offi-
cers. New contracting officers will be required. to
take the course in order that they understand
thoroughly the procedures for Agency procurement.
Special runnings of the course are being arranged
by request. The first special running of the course
is scheduled for OTS on 15 August 1977 with a second.
special running for the DDT shortly thereafter.
Finally, the Agency Contract Review Board, which
reviews all procurement actions with a dollar value
of $300,000 or more, is being utilized as a forum
for communication and enforcement of policies and
regulations applicable to competition and source
selection. Sole source justifications are reviewed
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SUBJECT: Agency Relations with the U. S. Business
Community: Recommendations of the
Inspector General
in depth and a procurement request may be rejected
if inadequate. Informational suggestions are being
included on dockets returned to requirements groups
which discuss methods for improving the procure-
ment process. Of particular value is the information
which senior level requirements officers receive
? through serving as members of the Panel.
4. Recommendation 6: That OL articulate guidelines for con-
tracting officers expanding on those now in existence, to define
types of situations where sole-source procedures are proper for
the Agency.
approved: The DD/A should incorporate the expanded
guidelines into Agency regulations.
Action: This action was reclamaed via reference (c)
as being counterproductive when the Agency is at-
tempting to improve its record in competing contracts.
We are taking no action.
5. Recommendation 7: That CRB (Contract Review Board)
proceed, as we arc informed OL intends,.to review production and
other contracts in the same way it does DDS,T's contracts.
Approved: It is understood that the Board's juris-
diction will continue to be limited to Agency
contracts and not those of National programs. The
DD/A should consider raising the dollar threshold
for review in light of the Board's expanded juris-
diction.
Action: Action has been completed as reported in
reference (c) .
6. Recommendation 8: That OL review its Table of Organiza-
tion in comparison to comparable Government organizations as well
as its distribution of professionals noted. in Attachment D
(Section I) of attachment to IG's Report) with a view toward pos-
sible increases in personnel numbers and grade levels.
Approved.: I understand the recommended review has
been completed within the Office of Personnel.
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SUBJECT: Agency Relations with the U. S. Business
Community: Recommendations of the
Inspector General.
The DD/A should inform me of the results of that
review and provide any recommendations within
thirty days.
Action: OL has taken no action beyond. responding
to queries from OP/PMCD since this is an OP/DDA
action. We would be interested in the results of
action by that Office on this recommendation.
7. Recommendation 9: That a systematic and consistent
Agency procedure be established to insure that the contracting
officer's participation is solicited at the earliest time in
the pre-proposal process; and that source-selection be organized
in a way that recognizes the independent responsibilities of the
contracting officer, in accordance with the Armed Services Pro-
curement Regulations.
Approved: The DD/A, in coordination with the
Dll S&T, should develop guidance on these points
which should then be incorporated into Agency
regulations.
Action: A statement has been included in the
revised Procurement Handbook which states:
"It is essential to orderly procurement of
supplies and. services that each Requiring
Office's internal procedures-are structured
to bring contracting officers into the pre-
procurement planning cycle at the earliest
possible point in time and in any event before
proposals are solicited. or unsolicited pro-
posals are acted upon." This action coupled
with those described. in paragraph 3 above com-
plete action on this recommendation.
8. In summary, we believe that the recommendations of the
inspectors who handled the subject inspection were on target.
The actions taken in response to their recommendations will
have long term positive impact on Agency procurement and they
should be commended for their excellent work.
/sd James H. McDonald
Approved F
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 STATINTL Approved For Release 2003/01/29 : CIA-RDP80-00473A000200140026-1
Approved For Release 2003/01/29 : CIA-RDP80-00473A000200140026-1