NOTE TO COLONEL WHITE FROM SBO

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP84-00780R000400100001-8
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 23
• Document Creation Date: December 14, 2016
• Document Release Date: March 28, 2003
• Sequence Number: 1
• Publication Date: March 9, 1964
• Content Type: NOTES

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Colonel White :
In accordance with paragraph 3
of Action Memorandum No. 319, Mr.
Kirkpatrick would like to review with
you and whoever you would like to bring
at 3 p.m. on Wednesday, 11 March,
"programs to effect continuing improve-
ment in the management of the Agency
toward the end of economies or savings. "
is preparing a briefing outline STAT
for you.
Meeting with Mr. Kirkpatrick (HGL, JHP)
Subject: Status of DD/S economy program
Wednesday, 11 March 64, 3 p.m.
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SEt9.
1. On 9 December 1963 before Action Memo No. A-319 was received,
the DD/S instructed Support Office Heads to come in with plans as to what
they would do if told they had to live at: (1) the FY 64 budget level, and
(2) the FY 63 budget level.
2. On 11 December the DD/S met with each DD/S Office Head to discuss
provisions of Action Memo No. A-319 and obtained briefings on economy
measures underway and contemplated.
3. DD/S memo of 15 December 1963 responded to Action Memo No. A-319
as follows:
Personnel -- Continue program at budgeted FY 65 level and absorb workload
increases
Medical - - Continue program at budgeted FY 65 level and absorb workload
increases
Security -- Continue at budgeted FY 65 level and absorb increased covert;,
contractual and NRO investigative increases
Training -- Continue at budgeted FY 65 level and absorb workload increases.
Finance - - Continue at budgeted FY 65 level
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Logistics
Closed the supply depot supporting JMWAVE saving 10 positions and
$235, 000 annually in the Support area.
Fourth Quarter Procurement -- Published Notice setting up controls and
deadlines on contract schedules and requisitions designed to avoid fourth
quarter procurement crashes and effect more economically negotiated
contracts and procurement.
Shuttle Bus Service - - Examined feasibility of a 50 per cent reduction in
service which would have saved 4 positions and $45, 000 annually. The
impact upon lost time of employees would have completely offset any
savings and it was decided to retain existing schedules and provide better
service without any increase in cost through rescheduling to accommodate
peak periods.
Economic Order Quantities -- Increased emphasis on economic order quantities
as a means of reducing inventory and more efficient procurement through use
of electronic data processing to improve management and highlight problem areas.
Vehicle Management -- In response to BOB Circular No. A-22 the following
actions have been taken: 1 limousine, 1 heavy sedan, and 4 medium sedans
eliminated from FY 65 budget. Mr. Karamessines has been asked to look
at the 2 Chryslers Iwith a view towards elimination.
SSA-DD/S is working with the Office o Logistics and the DD/P on a Regulation
designed to reduce the overseas fleet by encouraging mileage reimbursement
for personally owned vehicles. The Director of Logistics has been given
responsibility for ensuring compliance with BOB Circular No. A-22 and will be
in shortly with recommendations on vehicular economies.
Logistics Services Reductions -- Notices and Regulations have been published
curtailing sharply building alterations and executive furnishing expenditures.
Both types of actions now require approval of the originating Deputy Director
and the DD/S. We were spending about $100, 000 for executive furnishings
and about $300, 000 per year in alterations. Our goal is a 50 per cent reduction
which would amount to a saving of $200, 000 annually. Offsetting this are
known requirements which may entirely offset these savings, namely, completion
of construction for the Intelligence area behind the barrier, DD/S&T expansion,
and move of the Office of Finance to the Central and South buildings.
Reduced Courier Service - - Courier service has been reduced about 20 per cent
and this has resulted in a saving of 15 positions and $75, 000 annually. I expect
to use this saving to employ more contracting officers. in Logistics and to provide
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during FY 65, for overloads expected in the Office of Personnel due to the
Dental Insurance Program, the Early Retirement Program, etc. I have
already transferred two positions to QTR for the program.
w fee cc? reel
Printing Services -- We initially requested an increase of 30 people and
about $750, 000 for PSD overload. The need for this increase has been
averted through the work of the Committee, the customers 25X1
and PSD. Following are pertinent statisitics :
Hou
rs Overtime
by Logistics
Funded Hours Overtime Funded
by SR
November 1963
December 1963
January 1964
OCI Work (Plant No. 4) :
277
146
44
642
440
432
Nov 63
Dec 63 Jan 64
Printed Impressions
Plates Run
Offset Negatives Made
3,071,652
12, 872
2, 797
3,193,757 2,846,132
9, 248 11, 236
2, 323 2, 535
The above reflects a decrease in January of about 10 per cent
at a time when we were contemplating adding 8 people.
Printed Impressions:
Nov 63
Dec 63 Jan 64
Plant No. 1
8,320,865
9, 072, 540 9, 967, 223
Plant No. 2 South Bldg.
1,029,139
, 868, 324 1, 268, 419
Plant No. 3 (Hqs. Bldg)
2,227,877
1,366,538 1,472,453
The increase in January over December is normal because
December is traditionally a low production month. The
backlog situation in all plants is "favorable. Most of the above
reductions were due to cutbacks in DD/I publications.
Telephone Economies - - We were spending about $1. 5 million including
$300, 000 for long distance calls and $100, 000 for outside local calls. The
goal of a 25 per cent reduction would have amounted to $375 annually. We
have recorded savings to date of about $75, 000 and these will probably not
exceed $100, 000 annually. There was Agency-wide participation as reflected
by the following table and any future reductions would probably impair operations.
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Telephone Economies Tabte:
Reported for
Items
Prior to Survey Removal
Percentage of Reductions
Working Lines
5,
845
325
5.
6
Telephone Instruments
10,
524
1272
12.
1
Working Buzzers
22,
048
1235
5.
6
Red Line Terminations
(Buttons)
6,
660
207
3.
1
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Frequency Propagation - - Manual preparation techniques have been superseded by
computer processing, resulting in a rather extensive saving in man hours required
to produce the necessary data. As an example, one long term frequency propagation
p r~ &t formerly required 450 man des. The same project recently was accomplished
with less than 9 man days using computer techniques. The unit concerned has
been reduced from 3 officers and 1 secretary to 2 officers and 1 secretary, and
future reductions to one officer and one secretary will be accomplished.
Records Management -- Miscellaneous changes in procedures and work techniques
throughout the organization have resulted in a saving of one man year.
Modernization -- new communications, cryptographic, and traffic routing
and processing equipment has resulted in an increased capability to handle
increased traffic loads without commensurate increases in personnel. This
is a continuing program.
Training -- Commo technicians are being trained in more than one speciality
in order to permit fewer field personnel for stations having small workloads.
Also in this field, wage board employees have been hired to perform routine
production line tasks formerly done by higher salaried technical personnel.
Production -- The Commo laboratory is now producing small runs of specialized
equipment which manufacturers cannot handle economically.
Test and Inspection - - This function is now performed at the factory source instead
of at Headquarters -saving shipment and handling costs particularly on large items
such as generators and transmitters.
Decentralization -- Responsibility for the technical administration of the sub-Sahara
African~networFhas been transferred from Headquarters This 25X1
will reduce travel costs. Actions such as this have permitted the Office of Commo
over the years to reduce its ratio of Headquarters overhead to field personnel.
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Security
Security has been faced with an ever-increasing workload with a static
personnel ceiling. For this reason their management improvement
program is aimed at the absorption of increased workloads.
Following are pertinent statistics :
FY 60 FY 63 Projected FY 64
overt and covert investigations 30, 300 44, 400 -5J&tE ') D 0
counter-audio ispections 1, 000 2, 600 3, 300
polygraph interviews 2, 900 6, 100 7, 400
From the above it can be seen that any reduction in the
Agency's personnel recruitment program will be more
than offset through increased covert contractual and NRO
investigations.
Guard Cost Recductions -- A comprehensive examination of each guard post
in the Headquarters area has resulted in the closing of some Hqs. buildings
entrances and the elimination of other guard posts. This entire effort is
now saving $ -65, f86013djd?a anually. Agency response to this effort has been
favorable with no serious complaints due to the inconvenience.
Security Committee of the USIB - - Through the Chairmanship provided by the
Office of Security investigations of unauthorized disclosures are being conducted
as a community effort thereby avoiding duplication. Procedures are being set up
for the exchange of counterintelligence and security information thereby increasing
the capability. Uniform procedures are being implemented where possible to
effect maximum control in the fields of personnel and physical security.
Unauthorized Disclosures - - A focal point now exists within the Office of Security
which permits a quick determination on a item of concern and avoids duplication
of effort.
Index - - Conversion of 1.7 million index cards to machine language is proceeding
j and will increase production.
Security Clearance Control -- clearance records in 5 different security
systems have been consolidated into one centralized index to be providing better
and more accurate service with fewer personnel.
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Status Reporting -- The entire Office of Security is now geared to machine
status reporting in order to conserve manpower and expedite clearance
actions. In this connection better scheduling has permitted a reduction in
clearance time from 89 days in January 1963 to 75 days at the present time.
This lead time reduction is due in part to the use of TWX investigative reports
on applicant cases.
is fi3
Resident Agene - - Nine new resident agenctee have been established thus
placing security in strategic investigative areas and reducing travel costs.
~- the esf ~crfars
Biographic Data Mats - %ve ral private companies doing classified business
with CIA have agreed to *Attbiographic data mats on all personnel which
they submit to us for clearance. This saves CIA the clerical time of 3, 000
mats per year.
Broyhill Building - - Receptionist and guard service provided without any
increase in ceiling or funds.
Common Personality Numbering System -- This system covers individuals
of common interest to the Office of Security, DD/P and the Office of Personnel.
Through compatable numbering it speeds up and reduces the cost of document
handling.
S
Investigative Reporting Procedures for Confidential Correspondenete -- were
revised d recently. Annual savings of $20, 000 are anticipated.
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Ceiling Reduction - - The ceiling of the Office of Personnel has been reduced
by 17 positions because of recruitment reductions with no recognition of
increased workloads brought on by the Dental Insurance Program, JOT increases,
the Agency's drive for ceiling reduction, the impending Early Retirement
Legislation, etc. As a result of this, effective 1 July 1964 eight positions will
be transferred from Logistics to Personnel.
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Training
Workload Absorption -- OTR has, for all practical purposes, absorbed
a workload for which an increase of positions was requested. For
this they received two positions transferred from within the Support area.
The bulk of the increase which had been the
subject of medical co1ern has been denied. They can be expected to do
little additionally.
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Workload Absorption -- The Executive Development Program, the Executive
Examination Program, the anticipated JOT increase, and similar additional
loads have been absorbed by the Medical Staff without any personnel or
dollar increase. Consequently, few if any additional economies can be
realized here.
LET
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Machine Listings -- Develop fixed time schedules operating generally on a
48-hour basis instead of a monthly basis reducing time lags and eliminating
memoranda records and accounts.
Property Accounts Payable -- ReviseAprocedures affecting 13, 000 accounts
payable to permit machine reconciliation and avoid perpetuating differences
between billings and accounts payable.
Armored Car Service - - Executed contract with Brinks, Inc. for weekly
cash deliveries from U. S. Treasury to Headquarters, and installed money
counting machines. This saves manpower through contract guard arrangements
and through the counting machine.
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Delinquencies - - An energetic campaign to clear delinquent accounts has
reduced our former delinquency rate of 30 per cent to nearly zero.
Vouchered Funds Accounting System -- Converted to RCA 501 with manpower
savings.
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Pr~T Activities -- Through utilization of machine methods one very large
pr~ activity now has significantly improved procedures.
Procedural Improvement -- Procedures too numerous to mention individually
have been effected and these fall into two categories :
a. Those saving manpower through a re-arrangement of the
procedural steps and forms, and
b. Those which compressed the time lag thereby eliminating
a need for follow -up action.
-1cx.st.R
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Continuing Efforts
1. Overtime -- All Support offices have a target of a 25 per cent reduction
against the FY 63 overtime rate and have either developed or they are
developing plans for compliance. The largest and toughest one is going to
be Communications where their overtime stems from operational require-
ments. The Office of Finance is working on the quarterly reporting system
on overtime for the whole Agency and a Regulation prepared by the Office
of Personnel on overtime is now being coordinated.
3. Building Maintenance Standards -- Currently under study in order to
determine if economies are possible.
4. Publications -- Study underway in Support area to determine savings
through reduced subscriptions.
5. Central Travel Voucher Processing -- In process of study in conjunction
with move of Finance out of building.
Decentralized Voucher Certification -- Study being coordinated in an attempt
to have certification accomplished at Division level.
7. Qualifications Analysis -- Project to get better and quicker information
on Agency employees through machine utilization, requires use of 10 retirees
at a cost of $65, 000. This one has been in the Executive Director-Comptroller's
office for about one month.
8. Construction Projects -- Eight projects have been reviewed, one is to be
completed, six are under study, and one has been abandoned, the power 25X1
plant at a saving of $124, 000.
Procurement Practices -- The elimination of procurement actions without
participation by the Office of Logistics as well as incentive type contracts
are both under study.
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