CONSULTANT REPORT ON AGENCY PROCUREMENT

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80B01676R001600240003-8
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 26
• Document Creation Date: December 15, 2016
• Document Release Date: May 12, 2004
• Sequence Number: 3
• Publication Date: December 6, 1966
• Content Type: MF

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SECRET
1966
FOR: Executive Director-Comptroller
Consultant Report on Agency
Procurement
REFERENCE Your memorandum to DD/l,
dated 7 Oct 66, same subject
1dy comments on the recommendations contained
I endorse the idea of assigning respon-
sibility to one individual for the development
and establishment of uniform Agency procurement
policies and procedures and the general monitor-
ing of Agency procurement. Such a position
could be logically under the DDS or the DDS & T
since a split procurement system is recommended.
b. Contract Review Board
The establishment of such a Board appears
to me to be unnecessary. Certainly the individual
designated above could review contracts of the
stipulated level, calling for such information
and technical advice as required without the
formality of a board
c. Production and Logistics Procurement
the stud A curement systems by
follow.
Special Assistant to the DDS for
Agency Procurement
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d. Inventory Management
Concur
e. Centralization of R & D Procurement
Under DDS & T
With the understanding that centralization
of R & D procurement does not include centraliza-
tion of the management and technical control of all
R & D programs we can endorse this recommendation.
In the case of NPIC we must continue with the
responsibility for the development, approval and
technical monitoring of R & D programs devoted to
imagery exploitation and associated matters. We
certainly have no objection to the consolidation
of those administrative functions related to con-
tract procurement negotiation and fiscal monitoring.
f. Centralization of Contract Auditing
I defer to the comments of the Inspector
Procurement Management Information
System
Concur. Such a system is very much
needed.
h. Revolving Stock Fund
The present P system has been a source
of confusion and annoyance for some time. I favor
a system like the Revolving Stock Fund or
Informal Stock Fund which would provide for con-
trol by components including the prerogative of
reprogramming the funds as required.
1. Security Practices in R & D Contracting
Concur. Unrealistic procedures and
inconsistencies have been causing problems for
contract monitors.
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Integration of NPIC Equipment Systems
The consultant's point to well taken.
NPIC will continue to develop an integration
system concept internally which will be mission
oriented and will hopefully accomplish total
integration of the major contractual categories.
Contractual assistance will be sought as required.
k. Management of NPIC Long Range Program
NPIC is well aware of the need for con-
tinuing attention and development of its long
range R & D program. It has taken a number of
steps over the past year to assure this. We are
then in accord with the general thrust of the
recommendat ion .
25
EDWARD W. PROCTOR
Assistant Deputy Director for Intelligence
its Sg**0
~, 1155 .@~
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MEMORANDUM FOR : Executive Director-Comptroller
SUBJECT : GDP Comment an "Consultant Report on
Agency Procurement"
REFERENCE : Executive Director-Comptroller Memo,
dated 7 October 1966; Sarno Subject
1. This memorandum: contains my general comments on the
Consultant Report on Agency Procurement. I will briefly touch on
one or two points of major concern to the Clandestine Services. The
attached annex contains detailed and more extensive comment on all
of the findings and recommendations in the report that affect the
Clandestine Services.
2. As noted in the I. G.'s forwarding memorandum with the
report, the greatest organizational innovation proposed is the cen-
tralization of all the Agency's R&D and related production procure-
ment under the Science and Technology Directorate. This recom-
mendation vitally affects our activities in the Clandestine Services,
since TSD (and to a leaser extent, several other Clandestine Services
coMponents) carries out an extensive and varied R&D and related
production activity of central importance to Clandestine Services
operations. Although I feel that the Clandestine Services can live
with the proposed reorganization, I arr. not sure it represents the
float effective way of managing our procurement activities. In a
practical sense, the proposed reorganization represents little change
over our present mode of operation, since the report suggests the
assignment of a procurement officer frorri the Science and Technology
Directorate to TSD with real authority to contract, in recognition of
the special nature of scope of TSD contracting activities. This is
almost identical to the present arrangement, under which such an
officer is assigned to TSD from the Office of Logistics. Under the
proposed new arrangement, should the assigned contracting officer
be given greater independence of action and more final contract-
negotiating authority, it might actually improve our present situation.
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3. This recommendation of the Consultants derives
from their perceptive observation that R&D procurement
fragmented in the Agency at present, but that those units which
handle their own R&D procurement achieve better overall results
In terms of general management of these activities. I a
these observations, but it seems to me that they point the way to
a different and more effective R&D procurement system than that
suggested by the Consultants. I think the Agency R&D procure-
ment system should be decentralized to allow those directorates
having an R&D mission to conduct their own contracting, following
cotranan procedures and policy considerations. The C+nsultant-
ommended Special Assistant for Procurement in the Support
Directorate could well become such a source for central policy
and procedural guidance in R&D and related production procure-
ment, with each directorate having a contracting group operating
in the closest touch with the individual directorate's differing and
special needs, in closest proximity to its technical officers and
activities.
4. There is nothing in this suggestion which is incompatible
he recommended Management Information System for Procure-
ment. In this area, for a variety of reasons, I favor a separate
Management. Information System for the Clandestine Services. but
one which is compatible with the other system or systems in the
Agency for the purpose of supplying central R&D and production
management information. We are working on such a system now.
5. hay more detailed analysis on the report, as it affects
Clandestine Services operations, flows in the attachment. My
comments are keyed to the Consultants' summary of recomnnenda-
tions in Chapter VI, and will include references to other sections
of the report which are of interest to the Clandestine Services.
6. In summary, although I do not completely agree with
of the recommendations of the report. I found the report to be cons
ttve. stimulating, useful and provocative. If there has been any general
error in the Consultants' recommendations, it is a tendency to sacrifice
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some responsiveness to the peculiar and Individual needs of the
clandestine services for the make of organizational and bureau-
cratic tidiness. However, the Consultants' report affords an
excellent base from which to proceed with a long needed arrange
meat of our R&D and related production procuremout activity.
Dearnond FitzGerald
Deputy Director for Plans
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!Di$ 66-5722
MEMORANDUM FOR: HKSCai Erector- a ptTO lar
col,. ~ ;, g and
1. This memoravA= iaa a recornnt. tion for your a
is costained In para ra j.
Pracurct AcUma
Dyer flniteiy (bUp4OU
er Oblie as
or aiaate
a Support ramr+te will give att a to an
for adax istrr a Or OtIke ppUes Aud P_
3. The r i3 of Tabs A t1 E is Spedft OW)USh to p it the
a ril of those actims. wbkb amt forward rind the deferral of those
Bch .e be held. A pozUm of the Tab A is Classified eaE::~ezul
rapid to the haadtift of the more
rf the art DireMonte are detailed in
A throes z end summarized as follows:
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I
The Kew* Used for
dpweit at the OtUs at
4. 1 a val of the actl=s as
In Tad A t i as a z arteed 1* s 8b 2.
In W=Smph 4 is
R. L. Bannuman
DeVapity
for 3WO
Tab# A thm E
CON UEt
rem 0=40t
I - D/PPB
I
DD/S /S raao
a 6
15 NOV
*Subject to monitoring in DDS and SF /DDS
certification to Logistics on each procurement
proposal over $10,000 that it is in accord
with approved list.
12 'SSA %A It
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 SECREI
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8 N nw 1966
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MEMORANDUM FOR : Executive Director-Comptroller
THROUGH Director, Planning, Programming
and Budgeting
SUBJECT : Deferral of Procurement Actions
REFERENCE : Your memorandum to Deputy Directors,
same subject, dated 3 October 1966
6G, V'A GG
1. I have reviewed all planned procurement
actions for new contracts and follow-on contracts
in the Intelligence Directorate and determined that
they should be categorized as follows.
Contract Procurement Actions
(Funds in tuousands)
Of f ice
OBI
Not
Wired
Elite Deferred Deferred
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Scheduled for
3rd and 4th
_- arter
t~ 'automatic
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2. Attachment A lists those projects which I
believe should go forward now with statement of justi-
fication for each. Attachment B lists those projects
we will defer with a statement as to the effect of such
action. In attachment C I have simply listed all those
projects which are scheduled for procurement after
January and hence are not affected by the deferment
purpose.
4. I recommend you approve actions proposed on
projects contained in Attachments A and B and the
reprogramming proposed above.
EDWARD W. PROCTOR
Assistant Deputy Director for Intelligence
DISTRIBUTION:
Original & 1 - Addressee
- D/OPPB
2 - DDI
1 -
8 Nov 66)
Approved as submitted, subject to monitoring in DDI and certification
icy DDI/Planning officer on each procurement proposal over $10,000 that
it is in accord with approved lists.
L. K. White
:xecutive Director-Comptroller
NOV
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NT LLIOENCE DIRECTORATE
Deferred Co trade
Office
Number Tile
EPIC
NP-R-12-1Ol27 Printer/Processor Fly Away
Fit (Related to a Previous
Contract)
The deferral from second
quarter IT 1967 to the fourth
quarter in contracting this
project will not effect the
status of this requirement.
The six months effort for
C- can still be acct
in time to fulfill
requirements.
NPIC
XP-V-5-02057 Digitized Measuring Light '`able
The deferral of this
ect to the fourth quarter FY
1W? will not significantly
effect the requirements criteria;
this six month effort can still
be undertaken for land
completed in time.
NPIC
NP-V-2-02027 wide yield High Power Anasorphic
stereo Study
Design objectives for this
project have already been dis-
tributed to industry. A delay
in accepting the successful bidder
can be accommodated and a contract
F_
I,t
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. + ~ declass ficattaat
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Office
Number
NPIC
NP-V-2-02027
(Contd)
in the third or fourth quarter
the 1967 can be made for
t no serious loss to
NP!C
NP-A-4-04047 Crop Yield Study
Proposals from Industry
in response to HPIC design
objectives will be held and
the contract negotiated in
February March. This delay
in the effort will
not seriously effect the project.
NPIC
NP-L-1-13017 Teloprompt Cueing Device
Although this project
could go forth immediately:
there is no serious effect in
deferring the effort until the
fourth quarter IT 1967.
NPIC
NP- - --10047 Color film/Print Dryer Study
The design objectives for
this important project have
initiated responses from Indus-
try; however, there will be no
serious dela in this effort
for f the contract is
def errs o the third quarter
FY 1967
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Contracts Not Deferred
Office
Neer Title
25XI
Research on the national out-
come and product of the Soviet
and Satellite economies.
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Of
Number Title
NPIC
Stereoscopic Point Transfer
NP-V-7-02,077 Device Modification
NPIC
NP-V-9-02097
efficiency of this technique.
This project is for the Incor-
poration of an automatic high-
performance transport and the
addition of an anamorphic
viewing system to assist in
the point identification
process. All the staff work
is completed on this project
-which is to be performed by
quipment is limiting the
This project is for a
modification of a highly
sophisticated device for
transferring precision point
identifications from one
photograph to another. To
expedite the mensuration
process, it has been deter-
mined that the manual film
transport on the current
Anamorphic Eyepieces
This project in in response
to an immediate photo Interpre-
tation requirement for modifying
the high performance micro-
stereoscope. These eyepieces
will provide the capability for
compensating for photographic
distortions inherent in certain
new acquisition materials. All
preparations to undertake this
project have been made except
for approval authority to ne o-
tiate with
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P'IC
NP'-V-15-02 157
NPIC
i-l`--2-O3O27
Rear Projection Viewer
The present rear projec-
tion viewers have significant
deficiencies such as low reso-
lution and Inadequate screen
illumination when considered
against the newest acquisition
materials received within NPIC.
This development is to achieve
a high information transfer for
both scanning and detailed
image analysis and will provide
for those acquisition materials
scheduled for the immediate
future. This project will be
n?' otiated and developed by
as soon as approvWx
authority s obta ined
P. 1. .Performance Studies
Amount
This is a follow-on effort
to previous successful investi-
gations in response to questions
arising in the development of
new acquisition systems. Exam.-
pies are; the need for increased
resolution, the effect of various
convergence angles.. and the intel-
ligence worth of certain sensors.
There are questions posed today
relative to 1 -1
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Of f ice
Number
Title
NPIC
P. I.
Performance Support
This support augments the
P. 1. Performance Studies and
will be - rform d # a ka01
ith
concern
the capability to prow a photo
interpreters and human factors
analysts, to accomplish the
testing, to establish perfor-
mance data, and to validate
hypothesis made in the studies.
The tasking for this project
will be acca pltshcd as soon as
approval is given.
NPIC Dry Process Printer (Field)
NP-R-3-10037
The CIA Imagery Analysis
Division has expressed an urgent
requirement to provide -hoto
interpreters in the field with a
rapid-access contact printer. In
response to that requirement, this
prof ect which in ready for
approval authority, Will produce
a standard light table, a contact
printer, and a dry processor, all
packaged within one or more
standard NPIC flay-a ay boxes.
This equipment will permit the
P1 to view 9-inch roil film on the
light table, and to make contact
exposures and dry process paper
and/or film positive copies of
selected areas.
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office
Number
Title
)'PIG Blectrocolor Materials Study
P- ft-5 1 l
Tlectrocolor materials
have already demonstrated
superior characteristics and
the need for potentially
simpler processing methods
than any other hno color
photograph' reproduction
techniques. The imminence of
color acquisition materials
provides a mandate for the
developing of high quality
and efficient methods of color
reproduction. This project is
ready now for approval to
enter Into ne otiations with
NPIC Wide Print Straightener
N t-3 1O4p7
Nowly processed photo-
graphic prints have a decided
curl because of a differential
in the drying rates of the
emulsion and the paper base-
There are commercial print
straighteners to deal with this
problem, but they will only
accept prints up to sixteen
inches in width. Recent ad-
vances in film resolution and
improvements in photographic.
enlargers have resulted in
percent-
requirements for a high
age of prints wider than sixteen
inches. This project is to
develop a straightener which
handles both single and double
weight paper prints up to thirty
inches wide in about ton seconds.
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Of flee
Number Title Amount
NPIC The development of a prototype
NP-R-9-10097 will be contra d ` seal
and
(Contd) Year 1967 withfig
will require f ve
work at a cost o
This effort will fulfill an
immediate operational require--
msnt in IC; there is no other
equipment in existance to
accomplish this task.
NPIC
NP-R--14-10147 P. 1. Print Enlar
This project is in response
to immediate operational needs
experienced by the photo inter-
preter for a system to duplicate
his positive roll film and chip
transparencies in the form of
positive paper prints at selected
enlargement ratio in near real
. All pre-contract prepara-
tions have been completed to
negotiate and let this contract
vii th except
for approval authority.
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Tab G
INTELLIGENCE DIRWTMA
Contractax 8 Eh lad After Jaa try 22L7
NP-V-3--O 7
Iaage Comparison Microsterco-
sco
Advanced Light Table Proto-
types
XP-Y-4-02047 Direct (Virtual) Image Viewer
P-V-8-02057 Digitized aeDritlg Light
Table
NP-V-4-0,^067
P V -02087
NP-Y-11-02117
IMP-*F-13-02137 Dual Viewing MicrestereOcOp
Fiber Optica Vie r Modift
cation II
Advanced Stare hombOid
Prototype moditication 11
Z Tube Magnifier
N-12-02127 Acuity Adapter for l E7 -
piecea
XP-V-18-"287 Is owed Rear-Projection.
'-1 - 147 Holddn Techniques StudY
P-V-18-0-187 Chip Vie ray
19-
-reen Study
Variable Width Film Reader
Prototype
7 aatatie focusing 8yst
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declastifi11047
3017
d Rqut nt Study
scis? Measurement Study
T ac ciseity Binary Reader
Advanced Stellar Comparator
Autanatic Reporting Techniques
Sine We Test Equipment
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FOR. Executive Director-Comptroller
t Consultant Report on Agency Procurement
1. Attached is a copy of the report and a memorandum providing
a brief summary, with our views, of its major points. Distribution
of the report is being held subject to your instructions. The consult-
ants are prepared to brief the Director on relatively short notice.
2. As the study was across-the-board its impact will be felt by
the directorates. They will have an active interest in an
acti
n
y
o
deriving from the recommendations, and their reaction to the proposals
will make an important contribution to formulating any final course of
action.
3. It is suggested that the following steps be taken for acting
on the report ;
a. When instructed, copies of the report will be distributed
as follows: three copies each for the Deputy Director for Support
and th
D
e
eputy Director for Scid ihl
ence anecrsoog~yr; two copies
each for the Deputy Director for Plans and the Deputy Director
for Intelligence; one copy for the Director of Planning, Prod r?unmi,
and Budgeting. The remaining four copies of the total of fifteen
printed, one of which is forwarded herewith, will be held for your
use and that of this staff.
b. Each copy of the report would be accompanied with a copy
of the attached memorandum from the Inspector General.
c. The general comments of the Deputy Directors and the
Director of Planning, Programming and Budgeting will be solicited
in addition to which they will be assigned responsibility for
contenting specifically on listed recommendations.
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d. The staff of the Inspector General will review and
collate the cents on the reconendationa for submission to
you prior to further action.
3. The attached draft memorandum to the Deputy Directors and the
Director of Planning, Programing and meeting has been prepared for
your consideration.
J. S. Earman
Inspector General
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Deputy Director for Intelligence
Deput7 Director for Plats
Deputy Director for Science and TechnoloP
Deputy Director for S port
Director of P ann ng, ProgramaLug and t
ibuted herewith as to
xt7 Director for ience and Technology
and the Deputy Dire or for Support; two copies each to the Deputy
Director for Intelligence and the Deputy Director for Plans; one cow
for the Director of Planning, Prograwilng and Budgeting.
2. The general c to of the addressees are requested, well
as on any specific portion of the report on rich they feel coamts
appropriate. Chapter VI of the report a ices its major reco nda-
tior , as noted in the attached d zm from the Inspector General
paragraphs 5 through 13. While these recotamendati affect the
eddreseees in different degrees, appropriate cro nts are requested
from each of then on these sale.
conts fr'm
my count as they
3.4).
s are noted below, with a des
are requested specifically. 0
ate;
11n ? A should be rotated (Ch. II, Sectioa
b. le w Procedures should be instituted for R&D tract
and contractor reporting (Ch. III.f Sections 2.7 and 4-3-7).
DDT, WI, MP.
c. riPIC should develop a contract for integration of its
equips It cyst, a (Ch. III8action /+.k.?). 1I, M3,0 T.
?~ tug
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Consultant Report on Agency Procurer
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. w IC should give increased attention to lea ent its
Long Range Frograsi (Ch. III, Section 14.k.7).
e o Il inventories should be Included in the Agency
stock inventory system (Ch. IV, Section. 1.2).
E. Interdepartmental procurement practices should be
di.Uied (Ch. IV, Section 2.3).
g. Coordination of procurement 1 Business and Defense
Service A nistration and JCS Special Assistant for Counter-
insurgency and Special Activities should be centralized (Cb. IV,,
Section 5-3).
Replies we to be submitted within 60 calendar des from the
of this memorandum.
001T6-(C4 o - ~-'C)
Pt 1't 'iia
L. K. ate
Executive Director-Ctrolier
& 4 3in
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'SENDER WILL CHECK CLASS :ATION TOP AND BOTTOM
App~ ov~~1Q3a~rsR i a%e 004 07 i1~*
? CENTRAL INTELLIGENCE AGENCY
OFFICIAL ROUTING SLIP
TO
NAME AND ADDRESS
DATE
INITIALS
1
Executive Director -Comptro
ller
2
3
4
5
6
ACTION
DIRECT REPLY
PREPARE REPLY
APPROVAL
DISPATCH
RECOMMENDATION
COMMENT
FILE
RETURN
CONCURRENCE
INFORMATION
SIGNATURE
Remarks :
DD/I plans for procurement usually run
heavy during the last half of the fiscal year.
Recommend your approval.
FOLD HERE TO RETURN TO SENDER
FROM
AND PHONE NO.
DATE
J e, D/PPB
Ador64 ` Fb*IRUWas 20 4/@ n i
11/14/66
FORM 10- 237 Use previous editions