CONTRACT PERSONNEL DIVISION ANNUAL REPORT

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-01826R000100130003-8
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 9
• Document Creation Date: December 22, 2016
• Document Release Date: October 8, 2002
• Sequence Number: 3
• Publication Date: June 30, 1962
• Content Type: PERRPT

STAT Approved For Release 2003/04/17 : CIA-RDP80-01826R000100130003-8
Approved For Release 2003/04/17 : CIA-RDP80-01826R000100130003-8
 Apprgd For Release 2MV :CIA-RDP01826R000100130003-8
CONTRACT PERSONNEL DIVISION
ANNUAL REPORT
For the Period 1 July 1961 to 30 June 1962
SUMMARY
Fiscal Year 1962 witnessed a sharp increase in all of CPD's
activities. The number of contracts prepared rose, primarily due to
the expansion in Task Force "W" and the Africa Division. The con-
tinued growth in the nonofficial cover field was evidenced by the increase
in the number of staff and career agents on duty, the rise in the number
of cover agreements executed, and the added number of posts classified
by CPD for equalization allowance purposes.
Of particular significance were the problems arising from the re-
hiring of (1) retired annuitants and (2) personnel who have been declared
surplus under I Other developments of special interest were
the Division's newly assigned responsibilities for the processing of con-
sultants and for the review of compensation provided officials of propri-
etary organizations, and the study undertaken by the Chief, CPD concern-
ing the retirement of indigenous personnel. In the regulatory field the
Division's proposal for expanded authority in the field of special allow-
ances and the amendment to II virtually eliminating the Letter of
Authorization for military details, are worthy of mention.
The Division has, in addition, included in the annual report a state-
ment concerning the work burden presently being carried by CPD, believing
that it is our responsibility to bring this situation to your attention.
REV tATt ~ =-~~`_ ~
etc _~_. 1YPE -----
QRtG OMP - OP1 REV CUSS
0111C CLASS-4i- PAGES ~,A/ AptNt HR 10.2
REV o~/!
JUST NEXT
Approved For Release 2nn2ffiA ~
lA-RDP80-01826R000100' 3QQi 3
78 a tar,ati.
25X1
U -, '? n de r grr ing acid
N - ~ ~,=r9?s~iticati~n
~
 Apprc ,d For ReleaseQg&j: CIA-RDPW-01826R000100130003-8
SECTION I. MAJOR ACTIVITIES DURING FY 1962
1. Workload Analysis
Previous year-end reports rendered by Contract Personnel Division
have included a statistical comparison of the work activity of the fiscal
year just completed with that of the previous year. This year, in order
to provide a more significant perspective, we have also included the
figures for FY 1959. Comparisons with the latter year are particularly
relevant since it was during FY 1959 that a number of programs, lead-
ing to the greater use of the contract instrument as a "hiring" device,
were first initiated. We refer to the appointment of division contract
25X1 approving officers unde and the creation of the Clandestine
25X1
Services Agents Panel.
a. The comparison with FY 1959 in the attached chart clearly indicates
the growth in the use of the contract instrument, a growth which
was particularly marked in the preceding fiscal year. Most notable
was the approximately 50%a increase in the strength of contract
agent ly to the development of special projects such
as the sk Force "W". Also significant was the sharp
increases in the -categories of personnel most effected by the utiliza-
tion of nonofficial cover i. e. Career and Staff Agents. The number
of Career Agents on duty as of 30 June 1962 has risen 120% since the
end of FY 1959; Staff Agent strength has increased approximately 70%
in the same period of time. Further confirmation of this continuing
growth can be seen in the increased number of contracts prepared in
FY 1962 (70% more than FY 1959); and, in the nonofficial cover field,
the 45% increase in cover agreements.
b. The activity in the nonofficial cover field has had its repercussions
in all phases of this division's work as indicated in the tremendous
increase in staff agent personnel actions; the rise in the number of
the staff equalization allowances granted; and, in connection with
the grant of these equalization allowances, the added number of new
posts which the Agency has been required to classify since these had
not been surveyed by the Department of State.
P J JI JV U V VI RCICQ.JC LVVJ/V'+/ I I v~r~-rcvrvv-v IU UI' Uvv "I ' Mt .f'rn aatomaticO
SECRET dovrgading and
deSi35Sltiy3tlon
 25X9A2
L Approved For Release 2003/04/17 : CIA-RDP80-01826R000100130003-8
Approved For Release 2003/04/17 : CIA-RDP80-01826R000100130003-8
 Approveior Release 2003/04/17 : CIA-RDP80-D"26R000100130003-8
ET
SECTION II - SIGNIFICANT DEVELOPMENTS IN FY 1962
The developments that took place during FY 1962. which were of
significant importance to CPD are indicated below. Paragraph one (1)
relates to events that occurred during that year; paragraph two (2) to
a trend that, while accentuated during FY 1962, has been visible for
several years.
1. a. Re-employment of urplus Personnel - As 25X1
the lexercise neared conclusion the DD/P felt it necessary
to re-emp oy as specialists certain individuals who had been declared
surplus. Since the re-employment of these persons could have far-
reaching effects both inside and outside the Agency, a study proposing
a set of criteria to govern the re-hire of such personnel under contract
was prepared. Upon approval by the DD/S, Contract Personnel Division
was made responsible for seeing that the criteria were met in each case.
As of 30 June 1962 the Division had prepared contractual instruments
for 4 persons on thel list. Each document prepared and executed
had received the approval of the following individuals: (1) the DD/P Div-
ision Chief, (2) the DD/P, (3) C/PMC (4) OGC and (5) the Director of
Personnel. Three additional cases are in process for the coming year.
b. Re-employment of Retired Personnel - As a result of the
Agency retirement policy regarding staff employees who have reached
age 62, this Division has received a number of requests for the re-employ-
ment under contract of certain of these staff employees. The Division has
made a careful analysis of the terms and conditions of retirement and has
prepared a contractual instrument which would preclude the possibility of
dual compensation. Most of these retired personnel have been re-hired
under contract employee agreements wherein gross contractual compen-
sation is reduced by the amount of annuity. The general policy, in the
connection with the re-hiring of former staff employees, is that the net
contractual compensation plus the annuity should not exceed their former
staff salary. Close coordination has been maintained with OGC concern-
ing the use of retired staff employees as consultants categorized as
independent contractors.
Approved For Release 2 3/ 9 :CIA-RDP80-01826800010013 03n~
HI 1
#xeladerq iron avtomatle.
 Appro vap! For Release~0 4W: CIA-RDP8 1826R000100130003-8
c. Retirement of Indigenous Personnel - For many years the
retirement of indigenous personnel has been a source of discussion but
little definitive action has been taken by any component of the Agency.
During FY 1962, CPD was assigned the responsibility for determining
the particular type of retirement which would be best suited for such
personnel. To secure the basic data required, the Division prepared
a questionnaire to be forwarded to our field stations in order to identify
the indigenous personnel by station and by country and to define the
contractual relationships of such personnel with this Agency. The
questionnaire was released by the SSA/DDS on 23 May 1962 and reports
are currently being received from our field stations. Upon completion
of this survey, an analysis will be made and a recommendation pre-
pared for a retirement plan, a termination bonus, or another suitable
method for the disposition of this class of personnel when they reach
retirement age.
d. Task Force "W" - The creation of TFW during FY 1962
increased not only the volume of contracts prepared and reviewed by
this division but, also raised allied problems in the allowance field
e. Africa - The current emphasis on the African continent, be-
cause of the special conditions existing in this geographic area, have
required a number of special "hand tailored" nonofficial cover contracts.
It has also been necessary to classify many of the posts in this area for
equalization allowances inasmuch as State Department has made cost-of-
living surveys for only a limited amount of posts in Africa.
f. The Chief, Contract Personnel Division, in re-
sponse to a request rom your office, has been revising and making
recommendations on proprietary positions falling within To
ensure the establishment of proper salary and wage standards, the Div-
ision has secured a set of manuals issued by the American Management
Association and is currently using them as a basis for the recommenda-
tions.
g. Amendments to Regulations
(1) During Fy 1962, Contract Personnel Division prepared
an amendment to Allowances and Differential requesting authority
to grant special a owances not previously authorized when required by
unusual operational, security, or cover circumstances. OGC has indi-
cated that they are unable to concur in the draft revision as presently
written. They have requested that the proposed revision stipulate that
Approved For Release 2003/04/17 : CIA-RDP80-01826R001
SECRET
! d ,n r ~Iaj and
25X1A2D2
25X1
 Approvede or Release 2005 41 l lL-RDP80- 26R000100130003-8
requests for such special allowances be accompanied by a detailed
justification and that the office concerned obtain the concurrence of the
Comptroller prior to forwarding the request to the Director of Personnel.
We are presently rewriting the amendment to meet the General Counsel's
objections.
(2) A revision to Detailed Military Personnel,
providing for the virtual elimination o the Letter of Authorization for
military details, is presently being coordinated. The revisions incorpo-
rates the provisions formerly contained in the Letter of Authorization
in the regulation. When approved, the revised regulation will serve as
the authorizing document for payment of the normal military pay and
allowances to detailed military personnel. Letters of Authorization will
The proposal has not reac e
the stage where an actual amendment has been submitted for coordination
but it is anticipated that this will be done in the near future.
2. The narrative and statistics contained in Section I pointed out
the increase that has occurred in CPD's workload during the past three
years. The increases cited were in the original functions assigned to
CPD; there have been, in addition, other duties alloted to the Division
during this period. The total workload has now reached a point where
CPD is experiencing considerable difficulty in performing its assigned
functions effeciently while striving to maintain the desired controls in
the contract field. Indicated below, for your information, are the
changes that have taken place in the Division's workload since 1959
which have led to our current difficulties.
a. As indicated by the statistics in Section I, the number of
contracts prepared during FY 1962 increased 70% since 1959; the total
on duty strength for contract personnel has increased approximately
30%.
b. The additional workload imposed on the Division is greater
than the above figures would indicate, however, since there is also an
increased requirement for "hand tailored" contracts to meet the demand
for administrative simplification and to fit unusual cover situations.
Approved For Release 2003/04/17 : CIA-RDP80-01826R000 601 UHBc,Mic
SECRET a0 .a: _;n and
ddv~^~SIll.Hfl6t1
 Approve*For Release eM 1" 7 -: CIA-RDP80 626R000100130003-8
,.;i ~t t s tM
c. A further addition to the Division's workload has resulted
from the acquisition of several activities which are peripheral to
CPD's main function. In FY 1961, the Division began conducting exit
interviews for contract employees located at Headquarters. In the
same year, CPD was required to prepare personnel action requests for
contract employees under ceiling in order to record them in the com-
puter system.
25X1A9A d. A still further addition to the workload was created by the
assignment of functions which were not related to the Division's main
activity. Mn formerly with BSD, carried his respon-
sibility for liaison activities with other Government agencies in connec-
tion with Social Security and unemployment compensation matters with
him when he was assigned to CPD in FY 1961. In the last few months
of FY 1962, the Division was assigned the responsibility for consultant
processing. The last function has added many hours to CPD's workload
because of the new administrative requirements imposed by the Presi-
dential directive of 9 February 1962.
e. The personnel on duty in CPD in 1959 totaled 10 (the Chief
of the Division, 4 professionals, 5 secreterial and clerical); the total
strength in 1962 was 9 (CPD has lost one typist during the 3 year period).
The Division has only two contract specialists operating under the
supervision of the Special Contracting Officer who also serves as Chief,
Contract Personnel Division. The absence of one contract specialist
due to leave, training, field trip, or illness places the entire workload
on the remaining specialist.
Approved For Release 20ow 7. ,CIA-RDP80-01826R000190130003 $ - - 8
. 1 : `: a. d;aIamatic
"'^ aatl
SitIC;.IOR
 Approved F ,Release 2003 117 f 1PTRDP80-018SR000100130003-8
SECTION III - OBJECTIVES FOR FISCAL YEAR 1963
In view of the ceiling restrictions on the employment of staff
personnel, it is CPD's belief that the use of the contract instrument
as a "hiring" device will continue to grow in Fiscal Year 1963. Con-
sidering the current workload situation in the Division, CPD does not
believe that it would be advisable to embark on any new programs at
this time. Accordingly, CPD will focus its attention on the simplifi-
cation of work procedures during FY 1963 to enable the divisional staff
to handle the expected further expansion in the contract field. The
contracts prepared and the files maintained by the Division will be
examined with the goal of achieving the maximum standardization
possible. Form letters will be utilized whenever feasible. Finally,
since it is problematical whether the division can continue to main-
tain the prompt service heretofore provided, a system of priorities
will be established. With the institution of the above measures, it is
hoped that CPD can continue to service the DDP elements; maintain
the excellent liaison relationship now existing with OGC, Finance Div-
ision, and other support elements; and exercise the controls which
have become of greater importance with the current ceilings on person-
nel and money.
Approved For Release 2003/04/17 : CIA-RDP80-01826R000100130003-
L
C IRE T
Exchndhd rrc,n aitcrat
OOM.?rddrng and