AGENCY PERSONNEL CEILING

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00357R000700060056-2
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 11
• Document Creation Date: December 12, 2016
• Document Release Date: January 2, 2002
• Sequence Number: 56
• Publication Date: July 5, 1974
• Content Type: MF

C 0 MA PT
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Exeoutive Aegistr
5 JUL 1974
25X9A2
MEMORANDUM FOR: Secretary, CIA Management Committee
SUBJECT: Agency Personnel Ceiling
1. For many years the only external control placed on CIA. employ ,ent
was an OMB-imposed ceiling on end-of-year staff employment. OMB paid
little attention to contract, indigenous, or part-time employment and placed
no controls on these categories. The control on staff employment came to
us each year as part of the formal OMB allowance letter which sets forth
dollar and staff personnel totals for the -budget year to come. Our overall
personnel structure has been geared to this staff ceiling with positions.
classified as to function and grade by the Office of Personnel and reflected
in the Position Control Register. Contract positions were not subject to
Office of Personnel review and control and were subject to no overall
ceiling. For the past several years, however, an internal ceiling has
been placed on contract personnel levels.
2. For 1975, the OMB allowance letter of January 1974 established
the usual ceiling on staff personnel - end-of-year) and a new ceiling
on the combined total of staff and contract employment of~ The 25X9A2
letter further stated that we should move to an employment reporting system
consistent with those of other Government agencies as soon as possible.
This issue was discussed with the Director at the time and he agreed to,
it, and in subsequent testimony before both the House and Senate about
the new ceiling he indicated his desire to regularize our personnel account-
ing practices.
3. . As we have considered the implications of this new ceiling concept
on Agency personnel practices over the past few months, three basic points
have emerged, the last of these only very recently. First, the.imposition
of a de facto ceiling on contract employment makes it necessary to amend
our monthly. on-duty strength. report to OMB to include not only staff
personnel but also contract personnel. This report will explain in a corn-
tinuing way where we are with respect to end-of-year ceilings. (The
31 July report would normally be submitted to OMB in September or
October.) Second, because the on-duty figures which will become available,
monthly to OMB are substantially below the contract position ceiling
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shown in the budget, they may possibly suggest to 0MB the possibility of
further cuts in contract ceiling. We have, therefore, given considerable
thought to the various ways in which we might present a budget which
will make this eventuality less certain. The third point is considerably
more complicated, and has to do with the question of how large CIA should
be.. On the one hand it has been reasonably clear that the Director is
disposed towards continuing past practices and once again, in 1976,
effecting an overall personnel reduction. (He said during the course of
his review of the ADD Report for 1975 that a 1976 overall ceiling of about
.25X9A2 - might be desirable.) On the other hand it is clear from the ADD
Report and the responses to the 1976 Program Call that the Directorates
believe certain absolutely essential increases are required for 1976, It
is obvious that these essential increases will have to be accommodated
either by an overall increase in Agency size, which probably would be
unacceptable to both the Director and OMB, or by further corresponding
reductions in other CIA functions.
4. In considering our `recommendations to the Director for 1976, we
have given considerable attention to the possibility that there is the oppor-
tunity in this budget to accommodate some of the desired and justified
increases within a budget which does not reflect any increase in overall
ceiling. This opportunity arises from the fact that a certain number of
the Agency's present staff and contract positions are, in fact, filled by
personnel who work on a part-time basis and who are, in some instances,
counted on a two-for-one basis against our ceiling. In other departments
of Government 0MB pays most attention to the ceiling on full-time
permanent employment. All other employment, i.e., part-time, temporary,
and summer only, is considered by ?MB ' not on a one-for-one basis but
in terms of full-time equivalents. It has seemed to us, therefore, that
some modification of the way we count employees might enable us to free
for use elsewhere some of the full-time staff and contract ceiling blocked
by :part-time employees. As of the end of May, for example, there were
75 part-time staff personnel, of which 42 were included in our on-duty
count within staff ceiling. In addition, some 265 contract part-}time
personnel were on duty, of which 141 were counted against our contract
ceiling. If we were to adopt the Government-wide conventions, these
part-time personnel would be reflected in our budget on a full-time I
equivalent basis and would be neither counted nor reported against our
permanent employment ceiling. Because many part-timers currently are
counted on a two-for-one basis, we estimate that 150 - 180 full-time
positions might be made available for new functions as the 'temporary and
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part-time personnel now occupying these positions were moved to new
categories of employment where they would not encumber ceiling. It
seems logical that the ceiling thus released should become available for
other needs with no loss in manpower resources to the components utiliz-
ing part-time personnel.
5 To summarize, we are suggesting that un the 1976, budget the
Agency's personnel situation be presented in terms of the followin
4" eA
categories: (a) full-time permanent (FTP) positions
(staff and contract,
25X9 totaling (b) the full-time equivalent of all other Agency.,.,
oLner part-time, "temporary , 1--'and
intermittent employees
includin
's
,
g.
urror,only) (c) consultants, "and (d) indigenous employees In our bud
et
g
presentation we would continue to present a schedule of position grades
in accordance with present practice, modified to reflect our total full-
25X9A2 time permanent positions (i.e. The schedule would include,-
as in the past, all GS-equivalent, executive pay, military, SPS, and
ungraded staff positions. We would try to the extent desirable and
25X9A2 possible to include contract positions in like manner. Wherever possible
the Agency's Present_contract positions would be assigned a GS.
grade in accordance with the salary of the present encumbent. Where
for operational or other reasons essential for the Agency's overall. need
for flexibility this would not be desirable, contract positions would be
established without grade or with a grade range (say GS-9 - 14). In
the absence of a directorate-by-directorate analysis of which contract
positions ought to be given the normal functional classification and grade,
we are unable to estimate exactly how many of the presen~positions 25X9A2
would be so treated, but it is our general view that a majority of today's
contract positions could be classified by the Office of Personnel and
assigned grades.
6. Early consideration of the issues discussed above is important
as a decision must be made now on the manner in which we address
the personnel question in our 1976 budget. Also, the Director of
Personnel will require time .to develop new policy, procedures, and
control mechanisms oriented toward our new single ceiling concept, and
to assess the impact on existing and planned ADP programs, systems
and procedures. In addition, we expect the process to require an
educational effort directed toward operating officials and personnel
officers throughout the Agency to ensure the effective transition from our
present separate treatment -of staff and contract ceilings and personnel
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to a new approach in which these are combined. A set of questions and
answers about this proposal is attached.
IS/
per - JOHN D. IAMS
` Comptroller
Attachment:
As stated
Distribution:
Orig - addressee
10 - ES/CIA
1 - D/Pers.
.1-ER
4
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25X9A2
1. What personnel ceilings are imposed by OMB? Does Congress
impose any employment ceilings?
OMB's ceiling on Agency personnel for FY 19.75 is in two
segments. The first, consisting of a ceiling on staff employment at
is not new; we have had ceilings on staff personnel for many
years. The second segment is new for 1975, and consists of a ceiling
on total staff plus.contract employment of _ For 1976 we hope to 25X9A2
persuade OMB to amend this to one ceiling covering staff and contract
employment. We have informal indications that they are agreeable to
this proposal. Congress does not impose a ceiling, but is acutely
sensitive to changes in numbers of people employed.
2. Does this mean that there is a limit on the number of contract
people we can now have on board?
Yes and no. We are limited to-full-time contract employees
on board as of 30 June 1975. As with staff personnel, however, we are
free to exceed this limit during the year provided that we make the 30 Tune
ceiling. However, both dollar and average employment (A. F.) constraints
would serve to generally limit the extent to which the ceiling could be
temporarily exceeded.
3. Does the "single ceiling" include indigenous personnel?
Not at the present time. We would expect that eventually
indigenous personnel would be included within an expanded single ceiling.
OMB has agreed that to include another _-odd indigenous employees
within our single ceiling at this time would put us in a difficult position
with Congress. Our basic agreement is that when (and if) Southeast Asia
indigenous personnel levels decline dramatically, we will consider
including this category under our single ceiling.
4. Under the single ceiling concept can I convert people presently
under contract to staff?
Yes, but only within the limits of the 1975 staff ceiling, because
of the wording of OMB's allowance letter to us. We should have this
flexibility beginning with Fiscal 1976, when we hope to have a single
ceiling made up of full-time permanent (FTP) positions which can be
filled by either staff or contract personnel.
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5. What is the major criterion I should use in deciding whether
to hire employees in a staff or contract capacity?
The major criterion which should be used in deciding whether
an individual should be hired as a staff or contract employee is the
expected duration of employment. Should the applicant be considered
for a career with the Agency, or will the need for someone with his
skills be transitory? A secondary, but nonetheless important criterion
might be security factors.
6. What is the Government-wide definition of a full-time permanent
(FTP) position?
The Government's definition of a full-time permanent (FTP)
position is one which has been established without time limit, or for a
limited period of a year or more, or which, in any event has been
occupied for a year or more (regardless of the intent when it was
established).
7. What other type of position is there?
The only other type of position is a temporary position. A
temporary position is one which has been established for a limited period
of less than a year and which has not been occupied for more than a year.
We do not propose any of our ceiling positions be identified as temporary.
While there are only two types of positions, there are other
categories of employment. For the Government as a whole, less-than-
-full-time employees for budget purposes are counted only on the basis
of man-years of effort or what is called full-time equivalent employment.
This is the approach we would hope to apply for CIA employees who are
other than full-time employees. It would mean that an individual office
would receive a fixed numerical ceiling for all. full-time permanent
employment (including staff and contract), and hiring authorization in
the form of a total dollar ceiling for use in hiring non-full-time employees.
For example, EA Division might receive $250 thousand to be used to pay
.part-timers, temporaries, intermittents, summer-only employees, and
working wives overseas with very few other internal controls beyond the
agreed criteria for the use of these categories of employees.
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8. What is OMB and the Congress likely to require of me when.
reporting against my ceiling?
You will be required to report actual people on board occupying
full-time permanent positions for 1975, distinguishing between staff
and contract personnel. For 1976 we are hopeful that one figure com-
bining both categories can be used.
OMB will expect total dollar requirements to remain reasonably constant.,,
equivalent and expressed as A. E. must be reflected in the budget and,
9. What controls over FTP's are likely to be imposed on. me by
OMB? By the Agency? How many part-time employees can we hire?
The major control is simply the end-of-year full-time permanent,
ceiling beginning with 1976. Also, of course, a dollar total for A. E.
associated with this ceiling level will be given to you in the course. of
the budget process. Part-time employment levels converted to full-time
10. Will I have to classify every FTP position according to the
with fluctuations justified and explained.
No, aittiougn every eI.WrL 5iivuiu ,G 111GL1\+ v..' -?, a- --__.-
according to the GS schedule. However, a significant number of staff-.>
positions are not now classified and we would anticipate that in somep
parts of the Agency contract positions should not be classified.
GS schedule?
11. If not all my.FTP positions are classified, how will I have to
control these and report on them?
Only the occupancy of the unclassified positions will be controlled.
and reported. The total number of occupants (i.e., employees) would,
of course, count in total ceiling.
12. What are the advantages to the Agency of a single ceiling?
The advantage to the Agency of a single ceiling is primarily that
it would facilitate each manager's review of his workload problems in
the context of total resource requirements. It will also enable greater
flexibility in converting employees who are currently employed in contract
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status to staff if we and they desire. Another advantage is that it will
eliminate a basis for past criticism of our personnel practices as
concealing our true manpower requirements.
13. Do any advantages accrue to me or will I simply lose flexibility
in management of my personnel?
We argue that you will gain some flexibility in management
and personnel, You will be free to use staff or contract people as needed
and those personnel who are part-time or temporary and currently carried
against specific positions and charged against ceiling will be accounted
for essentially only in terms of dollar limitations with, of course, some
rules as to their use
14, Suppose I start a new collection program which I expect to.end
in three years. Will these positions be called "permanent"? If so, why?
Yes, these positions will be called permanent because they are
expected to last at least one year.
15. Where would I find the above positions? What happens to them
when the operation is over?
The positions needed for the new collection program will have
to be justified with the DCI and OMB.. When the activity is over, you will
be able to retain them for your own use if they can be justified for new or
expanded programs. If not, they will be moved elsewhere in.the Agency
for someone else's use, or they will disappear in an overall Agency
reduction
16, What kind. of employment terms (staff or contract) should I offer
to the individuals I hire to fill these positions?
As a general rule you should offer staff employment to individuals
that you would hire for a project or on-going activity if you anticipate that
their skills would be useful to the Agency over the long term. If their
skills were particularly perishable or if they were people who, for any
reason, should not be considered for career employment or could not meet
staff employee standards, we would hire them on a contract basis.
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17. Suppose I have had a chemist working for me for 10 years
as a contract employee. Can I now convert him to "staffWhat
criteria should I use if I wish to do so?
Assuming that OMB will agree to our overall proposal as
discussed above, in FY 1976 you will be able to convert this employee
to staff status. Criteria to be employed mostly relate to whether or not:
you think the Agency should establish (or has already established) a
career commitment to the individual in question.
18. Do I understand that an employee hired under contract can
occupy a FTP position? Why is 'this, if I've hired him for one year outi.Jy
Yes. An employee hired under contract can occupy a. full-tirne
permanent position. The nature of the position (i.e., permanent) rather
than the nature or category. of employment (i. e. , 'contract or temporary)
is controlling. If the employee does not work full-time, however, you
will be wasting part of the position.
19. Suppose I have a former employee (G,Sal5) now working for me
under half-time contract? Under the single ceiling, would she count
against my T/O? If so,. how?
Under the new concept, the former employee referred to her
would not count against ceiling unless you assign her to a full-time
permanent position ceiling. Her man-hours would be accounted for under
the overall controls established for part-time or temporary employees.,
20. What is a "personal services contract"? Does this count against
ceiling?
A person hired under a personal services contract as an independerjt:
contractor is not a CIA employee and does not count against any ceiling.,
The only control on the use of people like this is a dollar control..
21. Do "consultants" count against ceiling?
No. Consultants are not Government employees...
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22. Suppose one of my' staff employees wishes to stay 1
for the rest of his career, should I convert him to contract?
Not necessarily. If the position is a full-time permanent one,
it can be filled by either a staff or a contract employee, and once we have
a single ceiling there is no advantage to the Agency in converting a full-
time staff employee to full-time contract status.
23. Suppose we suddenly need 10 new "CGS-13 equivalent" contract
operations officers in the NE area and I find I have 10 empty "GS-7/9
equivalentf ` reports and operations officers slots in EA, would we need
to justify this change to PMCD?
Yes, if both sets of positions are in fact classified as to grade.
We believe that this problem can be overcome, however, by leaving a
certain number of positions ungraded. Of course, 'attention must always
be paid, whatever the ceiling controls, to the problem of average grade.
24, Am L correct in thinking that I can hire an individual into an FTP
position either under contract or as a staff employee?
Yes.
25. Can I put a staff employee into a contract slot?
Yes,
26. Does every position I have need to be on the Position Control
Register?
Yes,, as a general rule. The Agency as a whole strives to have
all positions accounted for on the PCR, for orderly accounting if..nothing
else. Note, however, that positions on the PCR can be ungraded.
27. If I have a non-full-time person now who is filling a FTP
position (or some portion thereof) will I lose this position because he
is not a full-time employee? Suppose I have two part-timers sharing
one position?
You may if the position is needed more urgently elsewhere.
But losing the ceiling does not inhibit your right to keep the part-time
employee or to replace him or her with other part-time employees.
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Similarly, if two people each working part-time are needed, their
continued employment would not be jeopardized by the transfer of
the full-time position they have been blocking.
28. Can I hire a non-full-time employee at an. equivalent: annual
salary level above $36, 000? How does this work?
In general, no, except as the DCI agrees.
29. Can I hire a full-time employee at a level above $36,000
either as staff or contract employee?
No staff or contract employee occupying a full-time permanent
classified position can be hired at a level.above $36, 000 except in an
executive pay category.
30. What has been the congressional reaction to a single ceiling?
Mr. Colby has discussed the general concept of the singi
ceiling with our congressional committees and they are agreeable
OMB is encouraging us to take the step, although they have not yet:
been given any details about how we propose to count our part-tile
personnel or the positions they have occupied. We believe that our
proposal is defensible, and that it offers advantages which are will.
worth the risk that OMB may challenge our approach once they,~have
all the details.
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