ACCOMMODATION PROCUREMENT

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP81-00142R000200030001-9
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 9
• Document Creation Date: December 9, 2016
• Document Release Date: July 5, 2001
• Sequence Number: 1
• Content Type: MF

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MEMORANDUM FOR: Deputy Director for Administration
SUBJECT : Accommodation Procurement
REFERENCE : OGC Memo to DDA, dtd. 26 May 78, Same Subject
(OGC 78-3395)
1. (C) The referent memorandum highlights an aspect of our current
accommodation procurement policy which the General Counsel believes has
problem potential. While I agree in principle that accommodation procure-
ments involving small amounts (i.e., $3,000 or less) may be no different
from those involving greater costs (i.e., in excess of $3,000), I do not
believe we should change the existing policy to require Headquarters review
of all accommodation purchases. The delay involved could jeopardize the
usefulness of minor accommodation procurements as an operational tool.
Within the existing policy frame of reference, I believe the risk involved
in a COS or COB unilaterally approving small accommodation procurements is
minimal. In other words, it is my view that the disadvantages inherent in
following our formal Headquarters approval procedures for small accommodation
procurements outweigh the risks involved in an occasional accommodation
procurement which may be viewed by external reviewers as inappropriate.
2. (C) With respect to the General Counsel's suggestions that accom-
modation procurements involving less than $25,000 be approved by the DDO
without the necessity of a formal memorandum, I believe this makes sense
and agree that a corresponding change in our policy and procedures should
be considered. In such cases, cables authorizing such procurements should
be coordinated with this Office. Also, in this same connection, I believe
the existing formal approval procedure should include a requirement for
prior coordination with this Office. Comptroller coordination on outgoing
cables granting approval for accommodation procurements up to $25,000, and
prior review of major accommodation procurement proposals would ensure that
any possible policy issues or implications from our vantage point might
be considered before implementing action is taken.
3. (C) I also agree with the point raised in paragraph 5 of the
referent memorandum and believe that HR should be revised to providg5X1A
for'an exception to the basic accommodation procurement policy. The
exception should not extend to high-level sources who hold high offices
in their governments--accommodation purchases for such agents or sources
should receive Headquarters review and approval.
cc: OGC
Comptroller
Y J1 F 7'4[ T I A Ct 9-
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DDA 78-2208/1
3 0 MAY 1978
MEMORANDUM FOR: General Counsel
FROM: John F. Blake
Deputy Director for Administration
SUBJECT: Accommodation Procurement
REFERENCE: Your Memorandum to DDA, dated 26 May
1978, Same Subject (OGC 78-3395)
Tony:
Jim McDonald, Director of Logistics, will be my
representative and will explore the issues you refer to
in your memorandum on "Accommodation Procurement."
cc: Director of Logistics
ADDA :lm (30 May 1978)
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OGC 78-3395
26 May 1978
MEMORANDUM FOR: Deputy Director for Administration
General Counsel
SUBJECT: Accommodation Procurement
REFERENCE: Headquarters Regulation- dated 4 January 1978
1 . recently called HR to my attention suggesting that 25X1A
one aspect of it might be objectionable from a legal standpoint. After looking
over the regulation, I tend to agree with him. The regulation permits Chiefs
of Stations or Bases to approve an accommodation procurement for items and
services where the total or combined cost to the Agency and to the recipient
is no greater than $3, 000 and which have "no significant risk or sensitivity"
and for which export licenses are not required. Any other accommodation
purchase, that is, one for more than $3, 000 (even where there is no "risk or
sensitivity"), requires a formal request for approval. This request must con-
tain all elements specified in paragraph C(l) of HR _including a discus-25X1A
sion of the legal aspects which might affect our ability to conduct the particular
accommodation procurement.
2. As I recall, the discussions and documents produced by the Executive
Advisory Group when it reviewed this issue reflected policy as well as legal
concerns. Commenting only on the latter, I believe the same legal questions
must be addressed in those cases where an accommodation procurement costs
less than $3, 000 as must be addressed in those cases where an accommodation
procurement costs more than $3, 000. Therefore, I urge that this regulation
be revised to state that all requests for accommodation procurements must be
reviewed by the General Counsel. I also think we may be imposing an unreal-
istic burden on a Chief of Station or Base to determine "risk or sensitivity, "
removed as most are from the day-to-day policy and legal problems we must
cope with at Headquarters, and to determine whether or not an export license
would be required if this were purely a commercial matter. The latter deter-
mination requires the COS or COB to have available and to be able to interpret
some fairly complex State and Commerce regulations found in the Code of
Federal Regulations.
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3. I do, however, feel that, through working 25X1A
with the Office of Logistics and the DO, respectively, we may have enough
of a control on the conduct of accommodation procurements that the formal
approval mechanism established by HR _ could be eased somewhat. I 25X1A
suggest that accommodation procurements where the total or combined cost
to the Agency and to the recipient is no greater than $25,000, the amount
which will be approved by a DO area division chief, be permitted without
the necessity of a formal memorandum such as now required by our regula-
tion. This will provide the DO with some limited flexibility and I feel that
through I can be assured that the legal aspects will
be addressed in cables prepared for release by the area division chiefs.
tells me that up until the date of this regulation this system seemed
to be working well and that it was an expedient way of conducting the DO's
business. Such cables were reviewed by him and he had been ensuring that
either the Office of Logistics or the area division logistics officers received
copies of them. If, as a matter of policy, it is deemed necessary to produce
memoranda for all accommodation procurements, then so be it, but I feel that
with the controls that now exist if we can possibly expedite these matters we
probably should. Would any possible policy issues which are not resolved
by my suggestion be taken care of if, in cases of accommodation procurements
of less than $25,000,- were to ensure that the Comptroller either coordi-
nated on the outgoing cable or received a copy of it?
4. - has told me that he has asked the DO to withhold coordination
on the issuing of HR until the questions raised above, particu-
larly in paragraph 2, have been resolved. In addition, he has called to my
attention that there is an concerning Accommodation Property
Transactions which has been on the books since April 1965, but there appar-
ently has been no corresponding HR. I presume that after these issues have
5. Finally, and this is intended only to raise a discussion point, might
we not exclude from the scope of HR_an accommodation procurement 25X1A
(except weapons or other lethal items) for a foreign national who is a clan-
destine intelligence source? It seems to me that accommodation procurements
for an agent's personal use, to the extent that there is an expenditure of funds
by this Agency, may be interpreted as an expenditure "solely to obtain
necessary intelligence."
6. If you think it useful, perhaps your representative could get together 25X1A
with-to explore these issues.
cc: DDO C/PCS
D/Log AGC/Log
D/Finance
Comptroller
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LOGISTICS
HR I
16. ACCOMMODATION PROCUREMENT (C)
a. (C) GENERAL. This regulation prescribes the policy and procedures for obtaining approval
of accommodation procurement activities.
b. (C) DEFINITION. Accommodation procurement encompasses three kinds of activity:
(1) EXECUTIVE AGENT PROCUREMENT. An item or service procured by the Agency
for a foreign government or individual and paid for by another element of the U.S.
Government.
(2) ACCOMMODATION PROPERTY TRANSACTION. An item or service procured by
the Agency for a foreign government or individual and paid for by that government or
individual. This includes material taken from Agency stocks.
(3) ADVISORY SUPPORT TO COMMERCIAL SALES. Advisory support provided by the
Agency to a foreign government or individual to assist that government or individual in
procuring goods and services directly from the vendors thereof.
The common element among these three kinds of activity is the provision of a service by the
Agency to a foreign government or individual.
c. (C) POLICY AND PROCEDURES. Each contemplated accommodation procurement
activity must be fully discussed in writing and submitted to management for approval. The
level of management authorized to approve each activity in general will depend on the
magnitude of the activity, in terms of its cost to the foreign entity, the U.S. Government, or
the Agency, and on its risk, probable duration, and sensitivity-
(1) REQUEST FOR APPROVAL. Each request for approval will contain the following
elements:
(a) A Description of the Proposed Activity. This should be a complete statement of
precisely what is to be done by each of the parties involved, and, where applicable,
what will not be done.
(b) A Discussion of Expected Purpose and Benefits. This essentially is the justification
for the proposed activity. It should be as complete and objective as possible. It may
address such issues as furtherance of U.S. foreign policy and improved opportunities
for unilateral and bilateral intelligence operations. It also should desckibe the
benefits to the recipient government or individual.
(c) A Discussion of the Costs and Risks. This should cover all items making up the total
"price to be paid" by all parties in return for the expected benefits. Included are
direct costs to all parties as well as indirect costs to the Agency and, if applicable, to
other elements of the U.S. Government. Such indirect costs would normally consist of
personnel, travel, transportation, overseas living, and other costs readily identifiable
with the proposed activity. Such costs must be presented for the entire duration of
the activity. The discussion of risks should include the consequences to all parties of
exposure of the activity to the public and of failure of the procured item or service to
meet expectations. The risk of incurring an obligation to perpetuate the same or
similar activities beyond conclusion of the proposed activity also should be
considered.
(d) A Discussion of Alternatives. This should include a listing of alternatives to
carrying out the proposed activity. The obvious alternatives to a proposed
accommodation procurement are (1) for the procurement not to take place, (2) for
the procurement to take place with the assistance of some other U.S. Government
organization, or (3) for the procurement to take place without U.S. Government
involvement. The advantages and disadvantages of each should be discussed with
emphasis on why the proposed activity is the preferred choice.
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(e) A Discussion of the Legal Aspects. Since each proposed accommodation
procurement must be in full compliance with U.S. laws and regulations, this
discussion should begin with a statement of the legal authority under which the
proposed activity would be carried out. This would be followed by a listing of other
pertinent laws and regulations with statements of how the proposed activity will
comply with each. Particular attention should be devoted to the Foreign Assistance
Act of 1961, the Foreign Military Sales Act, and the Arms Export Control Act of
1976. The necessity or desirability of seeking approval of the proposal from the
Special Coordinating Committee also should be addressed. The Office of General
Counsel may be called upon for assistance. Except where approvals may be granted
by Chiefs of Station or Base in accordance with paragraph (2)(a) below, the request
must be reviewed by the General Counsel and his concurrence obtained in. writing.
In general, the amount of discussion required to address the above items properly will
vary greatly from one activity to the next. In the case of small procurement activity, the
necessary discussion may entail little more than one page of standard declarations,
whereas a contemplated major procurement activity involving millions of dollars plus
substantial Agency personnel support would likely require much more extensive
treatment.
(2) MANAGEMENT APPROVAL
(a) Because accommodation procurements cover a wide range of activities of widely
varying cost, duration, sensitivity, and risk, the level of management authorized to
approve a proposed procurement activity also will vary. For the procurement of
items or services whose total cost to the Agency and the recipient is no greater than
$3,000, which have no significant risk or sensitivity, and for which. export licenses are
not required, approval may be granted by the chief of Station or Base. For the
procurement of items or services whose total cost is no greater than $100,000 but
which are otherwise the same as above, approval may be granted by the Deputy
Director concerned. All other procurements must be approved by the DDCI.
(b) In those cases where it is apparent that support from directorates other than the one
initiating the action will be required, the request for approval should be fully
coordinated with these directorates. In cases involving weapons, the request for
approval must have the concurrence of the Operations Directorate as set forth in
current regulations.
(c) The Office of the Comptroller will serve as a central repository for all
accommodation procurement actions. A copy of each request for approval.of an
accommodation procurement will be provided to the Comptroller, and the
Comptroller will be notified of the action taken on each request.
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