INSPECTOR GENERAL S SURVEY, OFFICE OF LOGISTICS, DIRECTORATE OF ADMINISTRATION

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP81-00142R000300070011-3
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 28
• Document Creation Date: December 14, 2016
• Document Release Date: October 23, 2002
• Sequence Number: 11
• Publication Date: September 13, 1978
• Content Type: MF

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13 September 1978
MEMORANDIJM FOR: Director of Central Intelligence
VIA: Deputy Director of Central Intelligence
FROM: John N. ~Jaller
Inspector General
SUBJECT: Inspector General?s Survey, Office of
Logistics, Directorate of Administration
1. Action Requested:
fVone; for your information.
2. Background:
This memorandum forwards the Inspector General's
Survey of the Office of Logistics. An Executive Summary is
attached.
This Survey contains 32 recommendations which are
summarized in Attachment 2. The Director of Logistics, whose
comments are appended at the end of the report, has accepted
the recommendations and has already initiated action on the
majority of them.
Attachments: 3
1 -- Executive Summary
2 -? Recommendations
3 - OL Survey Report .
cc: DDA w/atts
D/OL yr/atts
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Executive Summ,3~
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Introduction
The O~Ffice of Logistics (OL), a major component of the DDA
employees and an operatin~i budget of over
exists to support all Agency elements worldwide.. A majority of OL
employees were interviewed in the course of this survey and excel-
lent cooperation was received at all levels. tale found OL personnel
intensely service-oriented.
This report is organized by components, beginning with the
Office of the Director of Logistics (D/~_) and moving through the
branches, staffs and divisions. We conclude with three special
attachments.
Our findings led us to conclude th~:xt OL is a competent, well
run organization. It is beset with problems but OL management is
aware of them and attempting to solve t~-em.
Office of the Director of Logistics D/1_)
OL is headed by a dynamic, experienced, we71 synchronized,
three-man management team dubbed "the troika" by OL employees.
The DDA and his deputy, both former Dir,~ctors of Logistics, con-
tinue interest in and support for the office.
We found the OL management team somewhat isolated. from the
rank and file and suggested that they circulate more to give
their workers attention and recognition_
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Budget and Fiscal Branch (B&F
This srr~all branch handles B&F matters for OL, processing
over $1 million a year. Its workload builds up heavily at the
end of the fiscal year but the branch manages to keep up.
We found some concern in the branch that overtime costs in
OL are excessive and that payments are made to GSA for services
not performed. OL expenditures for overtime in the current
fiscal year are expected to exceed over ~1 million unless some
curtailment can be effected. OL management is aware of this
problem and has made a special study with a series of recom-
mendations regarding overtime expenditures. -
Records and Services Branch (R&SB)
This branch serves as a standard "registry" and is performing
well. Morale is high owing primarily tc7 the supervisory talents
of the seasoned branch chief -
tti"e found some hunger for recognition in this small shop and
suggested that the Executive Officer be more demonstrative in
nizing the work of this smoothly integrated, highly motivated
re co g.
team.
. ,.._r _~
Systems Analysis~Branch (SAB)
This branch is the focal point for development and maintenance
of Automatic Data Processing (ADP} applications and serves as a
bridge between the Office of Data Processing (ODP) and OL. Its
primary activity is computer software maintenance and branch
people deal principally with OL employees in an advisory capacity.
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We found a high degree of job satisfaction but encountered
same unhappiness owing to perceived pressure from the Procurement
Division to advocate an ADP system which SAB could not in good
conscience support. This situation was subsequently resolved but
we suggest that OL management ensure that pressure not be brought
to bear on SAB to support preconceived [~alutions.
Interviews in SAB produced information and views on ADP
proliferation which are included in the attachment at Tab G.
Security Staff
This staff is responsible for the security of offices occupied
by OL and for the Office of Security Industrial Security Program,
the latter activity occupying most of its time.
In conducting the Industrial Security Program the staff
arranges for clearances and reviews contracts. Staff representa-
tives or security officers assigned to the decentralized procure-
ment contract teams inspect contract facilities and establish pro-
tective procedures. The staff also sch?dules inspection of in-
dustrial plants, dealing with some 580 firms.
This staff maintains security files on companies involved in
classified work .for the Agency. We found the description of these
records in the Federal Register to he inaccurate and recommend
that D/L take steps to amerid this description.
The mair~ problern of this staff is a shortage of personnel.
We have, accordingly, recommended a review of its responsibilities
and assignment of sufficient personnel to carry them out.
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Security officers with the contract teams feel isolated from
the Office of Security. To address this problem we have reeom-
mended that the Chief, Security Staff, comment in Fitness Reports
on the performance of these officers.
.Personnel and Training Staff (P&TS)
This staff handles routine personnel matters and is charged
with supervision of the OL personnel panel system. This system,
as seen by OL employees, presents, one of- the _most_ser?ous_morale
problems in pL.
Our inspectors were assured by P&T`> that most OL personnel
see the panel system as fair and efficif~nt. Our interviews
failed to support this assertion. Ratht~r, OL_emplayees feel
that panel findings are ignored and tin':ered with by management.
Despite the recent issuance of a Headquarters Notice which makes
panel ran kings and promotion recommendations subject to change
only by the Director, we have suggested action by OL management
to clarify what appear to be personnel m7.~p,erceptions.
P&TS is also concerned withfcareer counselin~,.~ another ._
__ ~ .; _
problem area. IrJe have recommended issuance of an updated
instruction concerning career counseling and more attention to
supervisor compliance with career counseling responsibility.
.... ~~ ,
We have also suggested that OL management improve its sys em
for advertising ,job vacancies.
We found OL management strongly committed to training and
suggested reiteration of its policy that only the D/L can turn
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dawn a training request. The OL training budget for FY 78 is
only $46,000, down from $60,000 the year~ before. We suggested
that an effort be made to increase this budget.
Plans and Programs Staff (P&PS}
This staff acts as an advisory body to the D/L on matters
affecting fhe overall mission of OL and performs a wide variety
of functions. Turnover on the staff is quite high since it is
looked upon as a holding area. This lack of continuity reduces
staff efficiency and is the main problem facing its chief.
Procurement Management Staff (PMS}
This small staff is one of the most undermanned and over-
worked offices in OL. It is assigned a bewildering list of
tasks related primarily to guidance on procurement policy matters.
Despite the high calibre of its personnel, they cannot perform
the many tasks assigned to them with any degree of depth or con-
sistency. Additionally, personnel assigned to PMS have often
been reassigned elsewhere in short ordFr creating a lack of con-
tinuity and "know haw."
PMS has an important role to play as the D/L's center of
expertise an procurement law, policy, inter-Agency coordination,
and guidance to contract teams. We have recommended reinforce-
ment of this staff and greater continuity of service for those
assigned to it.
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OL Contract Teams
Cecentralized contracting teams, a~~signed to major Agency
components to expedite contract and pro s .... e fl ~
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the DDA to improve processing of paymen~~s to Agency contractors~
Elsewhere, in our discussions of these teams, we recommend ac-
tion focused on possible discretionary elimination of detailed
audits of firms given contracts less than $1.00,000.
We found security officers assigned to the contracting
teams troubled by the present system of security clearances and
have recommended a company-by-company survey to determine which
clearances are valid in order to arrive at an accurate listing
of persons holding valid clearances. W=~ further recommend
formation of a unit of security personnel to visit contractors
to give security guidance to contractor personnel..
Procurement Division (PD
The Procurement Division of OL is the Agency's primary
purchasing and procurement agent, spending
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goods and services each year. With butQ persons it is per= 2 5X1A
forming its tasks competently but under conditions requiring
attention and redress by OL management.
We found a personnel management problem which OL has since
addressed. We also found problems-of "churni_n~?_,~r~p_~ trans-
..._-- .
fer in and out) of personnel, especially in the General Procure-
ment aranch and we recommend greater continuity of service for
PD personnel.
We found a need for more experienced personnel, especially
with proven mechanical and technical abilities-, and formulated
an appropriate recommendation.
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Ira PI), even more than elsewhere, we found employee dis-
. ,~a - -~
satisfaction with a lack of career counseling: Irle have suggested
institution of automatic career counseling.
Competitive bidding requirements a;?e increasing the PD
workload, in some cases as much as 300 percent. Furthernx~re,
dealings with GSA and compliance with the Freedom of Information
Act tend to increase the workload. Des~~ite these problems, PD
manages to continue its solid performan~:e albeit with a consider-
able amount of overtime. We suggest the D/L take cognizance of
the escalating PD workload with a view to increasing the staff
accordingly.
Some problems were found in the Automatic Data Processing
and Engineering Branch (ADP&EB) of PD which handles the process-
ing and procurement of ADP equipment -- some
Business for this branch is increasing and the employee workload
is extremely heavy. .We have recommended an inquiry into the
apparent manpower shortage and improvements in guidance to and
support of this branch.
A more thorough examination of ADP problems is appended as
Attachment C.
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Supply Division SDI
The Supply Division is the second largest element of OL with
0
authorized positions, i n addition tc~
supply careerists
assigned elsewhere. SD is in a personnel- surplus situation and
the division chief spends most of his time. on personnel matters.
This branch oversees the stocking of 15,000 line items at
Agency storage facilities. It is the principal user of the
Inventory Control System (ICS), an ADP system which keeps tabs
SD is organized into four branches
Supply Management Branch SMB
stock inventory.
We made special inquiries here about the possibility that
materials might be stored in contravention of law or regulation.
We found no evidence of illegal or questionable material in
Agency hands.
The branch has problems with unrealistic customer deadlines
and with lack of information about some purchases being made by
In this latter connection we recommend
that D/L arrange for such information to be available to SMB.
We also suggested familiarization trips between SMB
0
We found the branch chief of SMB t6~ be highly regarded by
those he supervises.
Operations Support Branch (OSB)
This person branch is a catch-ail office which functions
essentially as a staff. One section deals in ordnance, air drop
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supply ar~d related matters. Another deals with writing and re-
vision of Agency regulations snd notices. A third deals with
budgetary matters, periodic reports, em~Floyee suggestions and
other disparate matters.
Interdepartmental Support Branch (TDSB)
This branch handles all requis%tianing of supplies from or
through other U.S. Government agencies. With the exception of
its dealings with GSA, where there is same friction because of
what GSA considers to be excessive Agency demands, the branch
gets its job done smoothly owing to close personal relationships
developed with officers in other agencies.
We suggest that the Chief, SD consult with OL legal officers
to ensure that reports to Congress on l~,ans and reimbursable
sales to other agencies or individuals ~~re being handled properly.
Data Control Branch (DCB
This branch runs the Inventory Canz,rol System, mentioned
earlier, a>d catalogs supply items. It is overstaffed and is
used as a holding area. We found sentiEnent here and elsewhere
in SD in favor of transferring the identification function,
now handled by Supply Management Branch, back into this branch.
We suggest that SD reexamine the rationale for the present
location of this function.
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Requisitions for Tlon-Standard Items
Logistics personnel have difficulty accepting personally,
although they accept bureaucratically, justifications they re-
ceive in connection with requisitions f~~r non-standard, deluxe
items .
We suggest some guidance may be in order to curb appetites
for such items and point out that the A-:~ency makes itself
vulnerable when it caters to such reque:~ts.
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Careful attention was given to possible storage of question-
able ma~teria1s at ~ but no problems were found. Storage and is-
suance of sensitive items and drugs are carefully handled. In-
ventory procedures appear adequate.
Allegations of improper use of automotive maintenance
facilities at the depot were investigated. It was determined
that these Facilities had been abused. OL management has taken
action to halt such practices..
In view of past problems with -- and high cost of -- fork
lift maintenance, we have recommended development of an in-house
capability to perform this work.
In our inspection o~f the Freight Traffic Branch we found
two employees exercising responsibilities which seem beyond
those normally associated with GS-05 ocsitions. Accordingly,
we have recommended an examination of these slots with a view
to upgrading.
Tn the belief that better planning by component logistics
officers can reduce overseas shipment casts, we have suggested
issuance of an appropriate notice by OL urging maximum lead time
for arranging transportation.
Inspection of the Small Purchases Branch revealed that
security practices concerning Agency-sterile purchases need
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tightening. It is recommended that the security staff of 0!.
insure that purchases and deliveries are effected in a secure
manner.
We found some evidence in this samk~ branch of by-passing
SMB to take advantage of quick buying services. No recommenda-
tion was required since OL management was already examining
these practices.
Safety at the
has an admirable safety record but there is
some concern far the safety of new hires who lack training. We
have suggested that steps be taken to train such people.
Personnel, Policies and Practices
Employees generally give ^ management good marks for EEO
,-..--
policies. We found no evidence of problems in this area. despite
high levels of minority and female employment. Some complaints
of discrimination in favor of college educated personnel. were
received, as were isolated charges of tavortism. We were not
able to verify the validity of these but did bring them to the
attention of ^ management.
Morale at ^ is generally good, although it could be
improved if suspicions of being considered "second class people"
cauld be dispelled. A sense of isolation and we/they thought
patterns do exist. 4Je believe that greater efforts should be
made to make ^ feel a part of the Agency. Mare attention and
recoc~ni ti on wou l d het p.
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Real Estate and Construction Division (RECD
This division handles real property matters throughout the
world and provides engineering support for the Headquarters
Building and other Agency-managed facilities. It has a higher
proportion of professionals -- engineers -- than any other OL
division.
Management 'is of high quality and well respected by division
personnel. Relationships are open and friendly but some dis-
satisfaction exists among technicians who are blocked from pro-
gressing beyond GS-11. 6~1e suggest discussion of this matter
further with these valued employees. 4~e have also suggested
additional attention to future technician requirements.
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The Field Engineering and Real Estate branches seemed to be
working smoothly but some problems exist between the Headquarters
Engineering Branch (}iEB) and GSA. While NEB has kept these re-
lationships fairly amicable, GSA performance has not been satis-
factory. By default, HEB has taken on w~~rk 4vhich falls within
GSA`s purview. The attachment at Tab A goes into some detail
regarding relations with GSA.
Logistics Services Division LSD
This division consists of a collection of unrelated functions
grouped under a common command to support overt Agency components
in the Washington area. Separate branches deal with maintenance
and operation of buildings, stocking anti issue of supplies and
disposal o~F materials, mail and courier services, architectural
design, and dining facilities.
Morale is generally good, a tribut~? to the quality of division
leadership and team spirit. There is same grumbling about slowness
of promotions and a feeling of isolatior+ on the part of those who
maintain the pneumatic tube system.
Two legal questions regarding the 'r_xecutive Dining Room, a
well run foci 1 i ty, have been referred tea OGC.
Some security problems were noted in the Mail and Courier
Branch, but we were apprised of an ongoing Office of Security
investigation of this branch and deferrr~d to OS for specific
recommendations.
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It is suggested that safety shoes be issued to branch
personnel whose duties require lifting and moving of heavy
material.
In the belief that new techniques might be learned to
enhance the security of Agency personnel, we recommend that
D/L carrsider sending at least one Agency automobile armoring
technician to visit commercial facilities.
During the inspection of LSD, relations with GSA again
came up for discussion.
Printing and Photography Division (P&PDj
This is the largest division in OL, employing people
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plants in its own building and in the basement of the Head-
quarters building. Known for its outstanding graphics and
printing work, P&PD handles same 2,700 ;lob orders each .month:
It is operating with fewer employees the=n it did 15 years ago.
A recommendation is included regarding Agency copier
machines 'in view of the obvious need to control proliferation
of these machines. Another recommendation concerns 'the volume
of material now being processed by P&PD.
In connection with the graphics and Visual Aids Staff, we
recommend another look at consolidation of this and similar
units in the Office of Training and in DS&T. Better working
space and working conditions for this s~.aff are also recommended.
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Problems in the Supply and Services Staff,. regarding short-
comings in stockage and provision of materials, have resulted in
a management decision to name anew uni{. chief. We suggest this
person be assigned better office space.
Because some supervisors are earning less pay than those they
supervise, it is recommended that the D/L look into the possibility
for raising supervisory salary levels.
P&PD has requested its own mini-computer system for inventory
controls, casting information, and tracking of job orders. The
ADP unit of the Audit Staff, OIG, will check on the need for this
system. In connection with ADP application in this division, we
suggest additional training in computer management.
In terms of compliance with Title 44 of the Federal Code,
covering U.S. Government printing and photography policy, the
division has been conscientious and has obtained required ap-
provals from the Congressional Joint Printing Committee.
The division has had several EEO cases and feels the need for
more feedback on the status of such cases.
Manning levels, especially in the production manager`s office
and the special printing plant, seem tight and may merit attention
lest a critical situation develop with the absence of key pPr?sonne~.
Relations with the GSA
A special attac'r~,r~ent (Tab Al co;r.,~,rr-~s relations with 'GSA,
also touched on earlier in this survey. 4Je have recommended that
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D/L bring to GSA's attention reports of lack of cooperation and
incompetence and, where appropriate, in~:ist on transfer of GSR
personnel. We have also included a recommendation that. the D/L
require periodic accountings on. GSA's. pf-rformance. A third
recommendation addresses the need for mE~eting with the GSA
Regional Administrator to arrange for tt~e granting of more leeway
to OL in contracting for equipment maintenance.
Elsewhere in this attachment we suGgest a priority effort
to clean up the emergency power house.
Destructian.of Material
Another special attachment (Tab B) concerns the destruction
of material, giving a few examples and concluding with a recom-
mendation that such activity be revalidated if it is to continue.
Problems in Procurement and Use of
Automatic Data Processing Equipment
A third special attachment (Tab C) concerns ADP problems and
concludes with a series of suggestions.
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~NSPECfOR GENERAt_' `~ SURVEY
~}~ I F9r
OFFICE OF LOG~S~ICS
~tUGUST 1978
RECOhiMEPdDA-f i.ONS
'] , That the Di rr-?ctor of Logi s ti c ~ take steps to amend
the section in the Federal Re~~ister which cone:erns
the I_ogi ti r_s Security is Earance Records System so
that it describes accurately the holdings in this
sy~~> tem.
2. That the Director of Logistics, in c?operation with
the Office of Security, revies~ the responsibilities
of i:he Security Staff and arr rnye for the assign-
ment of additional personnel in sufficient strength
to carry out those responsioilities.
3. That the Di rector of Logi s ti c ~; , ~i n concert with the
Ili rector of Security, arrange for the Chief, Secr~rity
Staff, Office of Logistics, t~ cornme~t?in Fitness
___ .~._
Repor~_attachments on the peri`ormance of security
officers assigned to the proe~arement'contr~cting
teams.
4. -i`hat the Director of Logi sti c~> re~i slue an updated
version of Logistics Instruction LI-~0-24 with an
introductory acknowledgement of employee concern
about la.r..ls..,of card?rm_cou,nsel.~g, and that thi ~ LI
be circulated once yearly to u~11 OL personnel.
Tha t_..~he ..~i rector__~_.Log.i s ti c y ~emntl _a 1.1 super_ui>>~r?~?
a -r their care- e r.__ co r~r-s-~l i~n g r~ sus i~.~ l.I ~" n _i1~ ~_~ ~~
~i n F= i mess _Fteports ,......where. a?:p 1_i~ab_le.e, apprapri ate
CDIIUrrt'_r1t On supervisor cornpli~:lce ;Nlth ttll5 important
duty.
6. Thai: tt~e Director of Logistics rein~Fcrce the
F'rucure~nent Manacj?rnent S~ta f f and provide far
greater Conti rrui ty of servi c;~~ for those as-
signed t:o this Staff.
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RECOi~IMENDA'i~IONS (Cunt` d)
7. That ~tho Director a f Log i sti cs i nsti lute a tear.?-by--
team persannr}1 study of contrr~:t t.eam5 to dete~~nint~
the workload of team members U,ith a view to increa_~-
ing the seize of teams 4vhere tha_ workload is un-
realistically high, not only ~nong OL contract
negotiators