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-RDP80-00473A000200140040-5
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 12
• Document Creation Date: December 14, 2016
• Document Release Date: May 29, 2002
• Sequence Number: 40
• Publication Date: March 25, 1977
• Content Type: MF

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2 5 iAR 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
-DD/A Registry
77-(t1
REFERENCE (a) Memo dtd 27 Feb 77 to Multiple Addressees
fm A-DCI, same subject (ER 77-011/3)
(b) Memo dtd 9 Mar 77 to D/L and D/Pers fm
AI/DDA, same subject (DDA 77-1310;
OL 7 1113)
1. Reference (a) provides either approval or disapproval
by the A-DCI for various recommendations by the Inspector
General in his November 1976 inspection of Agency relations
with the U. S. Business Community. Reference (b) tasks the
Directors of Logistics and Personnel to provide responses to
the Assistant for Information, DDA to facilitate a consolidated
reply. This memorandum provides information on action already
accomplished or planned on approved Recommendation 3 for which
the Office of Logistics has responsibility.
Recommendation 3: "That CIA commitment to the principle
of competitive contracting be reaffirmed, beginning
with a policy statement from the DCI."
Approved: "The DDA, in coordination with the DDSET,
should submit a statement for my approval within 60
days which is appropriate for inclusion in Agency
regulations."
Action: Attachments to this memorandum include (1) the
policy statement for signature by the DDCI, (2) a draft
STATINTL of rev' ed Owhich has been modified at paragraph
STATINTL Ito include a statement regarding Agency commit-
ment to the principle of competitive contracting, and
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SUBJECT: Agency Relations with the U. S. Business
Community: Recommendations of the
Inspector General
(3) a transmittal memorandum from the DD/A to the
DDCI.
2. We believe this completes required action on Recom-
mendation 3 of the subject Inspector General Report.
STATINTL
James mcuona-ra
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MEMORANDUM FOR: Deputy Director for Administration
Deputy Director for Intelligence
Deputy Director for Operations
Deputy Director for Science and Technology
FROM E. H. Knoche
Deputy Director of Central Intelligence
SUBJECT Competition in CIA Procurement
I. Procurement of supplies and services required for
authorized Central Intelligence Agency programs is vital
to the Agency's mission. Applicable Federal Government
procurement laws and regulations require that all procure-
ments utilizing appropriated funds, whether by formal
advertising or by negotiation, be made on a competitive
basis to the maximum practicable extent. The requirement
is applicable to all procurements, whether for research and
development, production hardware, external analysis, ser-
vices or major system acquisition. Our fullest compliance
with this requirement will serve to optimize our procure-
ment efforts as well as further the doctrine of fairness
for Agency contractors.
2. I ask that each of you, during the various phases
of program planning and execution, be mindful of the re-
quirerient for handling procurement on a competitive basis
to the maximum practicable extent. I ask also that you
convey to personnel within your Directorates my personal
commitment to the principle of competition.
E. H. Knoche
Distribution:
Orin; - DD/A
1L - Each Other Adse
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2. PROCUREMENT OF MATERIEL AND NONPERSONAL
a. AUTHORITY
(1) The Central Intelligence Agency is authorized
by law to procure. materiel and nonpersonal services,
including studies, reports and the results of research and
development, required to accomplish the Agency's mission.
(2) The Director of Logistics will exercise all
delegable procurement authority of the Director of Central
Intelligence as Agency Head, except as otherwise specifically
delegated by the Director.
(3). The Director of Logistics will advise the
Agency Head on procurement matters that by law cannot be
delegated.
(1) Within limits imposed by statutes or other
/t/
authorities external to CIA, the Director of Logistics will
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conduct procurement activities and make commitments binding
the Government in accordance with standards, arrangements,
methods, and terms most advantageous to the Government.
Unless security or other considerations peculiar to the
Agency's mission require procurement to be carried out in
some other manner, it will be accomplished to the maximum
practicable extent in accordance with the procedures and
standards of the Department of Defense, as evidenced by the
''Armed services Procurement Regulation'' as it now exists
or may be amended. This is true except in those areas such
as ADPE where the Federal Procurement Regulation (FPR) is
applicable to all executive agencies.
(2) The Federal Government procurement
regulations cited above require that all procurements
utilizing appropriated funds, whether by formal advertising
or by negotiation, be made on a competitive basis to the
maximum practicable extent. All Agency personnel involved
in the procurement process should plan and execute their
procurement responsibilities in such a way that maximum
compliance with the requirement for competition will be
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achieved.
c. RESPONSIBILITIES. The Director of Logistics
is responsible for the development of instructions and
guidelines, including technical handbooks as appropriate,
for the conduct of Agency procurement activities. These
instructions will include explanations of
(1) the nature and precise extent of the
procurement authorities that he has delegated, and the titles
or names of the persons to whom such delegations have been
made.
(2) arrangements made with requisitioning
components'of the Agency, the Offices of Security; the
Comptroller; Finance; General Counsel; and the Audit Staff
for the participation of those components in Agency
procurement activities.
(3) the records to be prepared, reviewed, or
maintained within the office of Logistics to document
administrative decisions regarding individual procurement
cases or classes of cases.
d. UNAUTIIORIZI:D PROCURI:i?II t1T ACTIVITIES
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(1) Agency employees will consult the office of
Logistics before initiating any contracts concerning
proposed procurement activity with potential sources of
supply, including business and other organizations,
institutions or persons outside the Agency.
(2) Unauthorized procurement activities by Agency
employees, including contacts, negotiations, or commitments,
may subject the employees involved to personal liability and
disciplinary action.
(3) Purchases from Government employees are
prohibited except with prior approval of the Director of
Logistics.
e. PRECONTRACT CONTACTS. For security reasons
all headquarters personnel will consult with the Security
Staff, Office of Logistics, before initiating any form of
contact with commercial firms, universities, or institutions,
when the purpose of the contacts is possible or contemplated
Agency procurement contracts, whether classified or
unclassified. This coordination is essential to prevent the
compromise of existing Agency contracts of a sensitive or
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classif_Led nature, and also to ensure that all mail and
persona.L contacts are made in a manner consistent with the
proposed sterility of the contemplated procurement action.
f. CIA CONTRACT REVIEW BOARD. The CIA Contract
Review Board advises and assists the Director of Logistics
in exercising the procurement authority delegated to him
by the Director of Central Intelligence as Agency Head.
STATINTL See
for the organization and responsibilities of
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MEMORANDUM FOR: Deputy Director of Central Intelligence
John F. Blake
Deputy Director for Administration
SUBJECT Agency Relations with the U. S. Business
Community: Recommendations of the
Inspector General
REFERENCE Memo dtd 27 Feb 77 to Multiple Addressees
fm A-DCI, same subject (ER 77-011/3)
1. Action Requested: This mem(.)randum provides information
on action taken by my Directorate in response to your approval
of Recommendation 3 of the subject Inspector General report.
Paragraph 4 contains a recommendation for your action.
2. Background: The referent memorandum approved various
recommendationsby the Inspector General in the subject report.
Recommendation 3 is: "That CIA commitment to the principle of
competitive ..ontracting be reaffirmed, beginning with a policy
statement from the DCI." Your approval of the subject recom-
mendation states that: "The DDA, in coordination with the
DDS$T, should submit a statement for my approval within 60 days
which is appropriate for inclusion in Agency regulations."
Attachment 1 hereto is the memorandum which reaffirms Agency
commitment to the principle of competitive contracting. Attach-
ment 2 is a draft revision of which, at new paragraph
incorporates Agency commitment to the principle of
competitive contracting. The draft regulation is in coordina-
tion preparatory to issuance.
STATINTL
3. Staff Position: This memorandum and its attachments
have been coordinated with the Deputy Director for Science and
Technology. The headquarters regulation attached will receive
normal coordination for such documents prior to issuance.
4. Recommendation: It is requested that Attachment 1
be signed.
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