LETTER TO MR. WAYNE G. GRANQUIST FROM JOHN F. BLAKE

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP84-00933R000400010012-6
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 24
• Document Creation Date: December 9, 2016
• Document Release Date: August 4, 2000
• Sequence Number: 12
• Publication Date: September 29, 1977
• Content Type: LETTER

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DDCI Letterhead
ODP 1966-77
2 9 SAP 1977
*OMB Waiver Letter In ERU File*
Mr. Wayne G. Granquist
Associate Director for Administrative Management
Office of Management and Budget
President's Reorganization Project
Washington, D.C. 20503
Dear Mr. Granquist:
In response to your letter dated September 20, 1977,
we have studied the draft of the work plan for the Federal
data processing reorganization study you attached.
As an Agency heavily dependent upon data processing to
accomplish our mission, we strongly support the goals of
this study, and concur in the draft as written.
Please keep me advised of your plans and any help we
can provide to the study.
Sincerely,
John F. Blake
Acting Deputy Director
2 9 SEP 1977
erector' o-r Data4 Processing Date
Distribution:
Orig - Addressee
1 - DDCI
1 - ER
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1 - ODP Registry
c~ 3` - O/D/ODP
 PRESIDENT'S
R$ fRi V6Vo%T(JQI*P84-00933R000400GW12-6
WASHINGTON, D.C. 20503
;.` PROJECT
SEP 2 0 1977
Mr. John E. Blake
Acting Deputy Director
Central Intelligence Agency
Washington, D.C. 20505
DD/A Registry
r~ 7~
Enclosed for your review and comment is a discussion
draft of the work plan for the Federal data processing
reorganization study.
We would appreciate receiving any suggestions for
changing the plan by September 30, 1977. .
Sincerely,
Wayne G. Granqui6t
Associate Director for
-Management and Regulatory Policy
Enclosure
AW*&W d4 PRFeIC-gs@P (IO iHM?I:EMATREWg 09g3RO09bMISV6D BUDGET
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August 30, 1977
FEDERAL DATA PROCESSING REORGANIZATION STUDY
OVERVIEW
? In FY 1978, the Federal Government plans to spend more
than $4 billion and employ more than 150,000 Federal and
contractor personnel to operate over 11,000 computers.
? Over the past few years there has been growing criticism
of the way in which the Federal Government acquires,
manages and uses its data processing resources. Symptoms
.of the problem are numerous:
Public complaints about delays or inaccuracies in
computer assisted processing of applications for Federal
assistance, issuance of checks and other transactions
by the Government are increasing.
- Issues pertaining to computer and communications technology
have become the subject of almost daily press coverage.
- Widespread concern has developed that the manner in
which computer technology is being used by the Federal
agencies represents a threat to individual privacy.
- It currently takes 3-5 years to acquire a major computer
system.
- Since 1965, the GAO has released nearly 200 reports deal-
ing with problems in the acquisition and management of
Government computers.
- Hundreds of millions of taxpayers' dollars have been
wasted or lost through mismanagement and misuse of
computer resources.
- OMB has intensified reviews of budgets for computer
activities.
- GSA has intensified controls over computer procurements.
Congress has intensified its review of Federal computer
activities, budgets and major computer acquisitions.
0 At the same time, there are many areas where the Government
could make effective use of computers, but has failed to do
so. For example, it may be possible to improve the delivery
of services such as unemployment compensation, welfare,
social security, etc., through consolidated application of
computer technology. It may be possible to reduce the
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costs of running the Government by consolidating certain
administrative services, such as payroll, which are common
to many elements within an agency or shared by several
agencies. It also may be possible to improve service or
reduce costs by establishing service centers which can
provide specialized assistance, such as scientific pro-
cessing, to a number of agencies.
0 The Data Processing Reorganization Study has been initiated
Improve the delivery of governmental services through
the effective application of computer and related
telecommunications technology.
2. Improve the acquisition, management and use of these
resources.
3. Eliminate duplication and overlap in agency juris-
dictions relative to computer issues.
? The study will be organized :into a-small full-time project
management staff and a number of issue-oriented task teams.
The project management staff and task teams will be
comprised of individuals from the'private sector, Federal
agencies and state/local governments.
? Specific problems and issues to be addressed have been
identified through comments and suggestions received from
Federal agencies, Members of`Congress, interest groups
and the public. Each major problem area will be assigned
to a task team for study and development of alternative
solutions. In addition, problems and issues which offer
high payoffs and can be addressed in an immediate time-
frame through administrative policy guidance will be
handled as short-term special projects.
? The identification of problems and the development and
analysis of alternative solutions will be conducted in
a fashion which will permit extensive participation by
individuals and organizations that have an interest. in
the management of Federal data processing resources.
This process has been initiated and will continue
throughout the course of the study.
An analysis of alternative solutions to each problem will
be presented to the President for decision.
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ROLE OF THE PROJECT MANAGEMENT STAFF
A project management staff of seven individuals will be
established to coordinate the planning and execution of the
Federal Data Processing Reorganization Study. The staff
will include two representatives from the private sector,
two from Federal agencies and three from OMB. The project
management staff will formulate plans for the study in
coordination with senior White House and OMB reorganization
officials, coordinate the activities of the task teams to
assure maximum public participation during the conduct of
the study and subsequently coordinate the development of
option papers for decisions by the President.
Project Planning
The project management staff has sought extensive public par-
ticipation in the definition of problems to be addressed by
the study. More than 120 letters were sent to agencies,
Members of Congress, industry associations and other groups
requesting their views on important problems to be addressed,
possible causes and alternative solutions. A request for
comments was also published in the Federal Register. The
response has been outstanding. Over 130 letters contain-
ing hundreds of specific comments and suggestions were
received between mid-July and mid-August. These comments
and suggestions were used to help identify the most signi-
ficant issues and to develop the study plan.
Coordination of Task Team Activities
The reorganization project has been subdivided into a series
of issue areas, each of which will, be addressed by a task.
team. Teams will include representatives from Federal
agencies, State/local government, academia and the private
sector. Team leaders will be selected from organizations
that would not be significantly affected by the outcome of
the task teams' deliberations. The project management staff
will maintain close liaison with the various task teams to
assure communication and coordination of interrelated study
efforts.
Short Term Special Projects
It is anticipated that the project management staff will
undertake a number of special projects in situations where
high priority issues that require immediate attention are
identified or where new issues are identified that do not
logically fit within the planned task team structure.
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Preparation of Final Recommendations
The project management team, assisted by the task team
leaders,. will have the responsibility for consolidating
the findings, public views, and recommendations of the
various task teams into a final report. This document will
include, as appropriate, recommendations for new legisla-
tion, reorganization plans or new policy directions.. It
will be the basis for decisions by the President.
TASK TEAM STRUCTURE
The many comments received from_Federal agencies, Members of
Congress, State and local governments, private industry and
the public have strongly endorsed the need for a comprehen-
sive reappraisal of Federal data processing organizational
structures, policies and responsibilities.
While many of the comments were critical of current computer
and telecommunication management practices, they also pro-
vided many constructive suggestions on improvements that
could be made. These comments have served to identify the
most significant issues which need to be addressed and were
used to develop an approach for addressing these issues.
The largest number of comments were directed at problems
associated with:
? The planning, management and use of computers by
program agencies.
? The acquisition process.
? Policy guidance, regulation and control exercised by
central policy agencies.
To a lesser degree, comments were directed at operational
management issues, standards issues, personnel issues and
other subjects.
The task team structure which has been selected is shown on
the master schedule (page 6). The structure calls for:
? Six task teams to address planning and management issues
which are unique to individual operating agencies and. to
obtain further views on. government-wide issues.
? Five task teams to address government-wide issues which
are common to all agencies.
1. An acquisition task team will address issues
pertaining to the selection of computational capa-
city to meet agency needs. More time has been.
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allocated to the acquisition task team because
of the magnitude and complexity of the issues to
be addressed. The focus of the acquisition task
team in relation to that of the agency task teams
can be viewed as analogous to the supply and
demand equation of the economic market place.
The agency task teams will address the demand for
data processing resources while the acquisition
task team will addres.s the sources of supply.
2. An operational management task team will
address problems pertaining to the design of
systems and the management of data processing
operations. While the agency teams will focus on
issues related to agency investment decisionmaking
processes and responsibilities for determining
"when" technology will be used, this task team
will focus on issues related to "how" technology
is applied and managed.
3. A task team will address issues pertaining to
computer and related telecommunications standards
issues.
4. A data processing personnel task team will
address personnel problems which are unique to
the data processing community.
5. A team will address central policy issues, broad
organizational issues and alternative strategies
for meeting, Federal data processing requirements
in the future. The activities of this team have
been scheduled late in the study in order that
they may benefit from the findings of the teams
addressing specific agency issues and the other
more specific government-wide issues.
The task statements which follow identify major problems
in each task team area which have been identified to date.
These statements are not intended to list every problem
that will be addressed, but are meant to serve as guide-
posts for team activities. When the teams are formed,
these issues will be used as the basic framework to
develop more detailed task team plans. Task teams will
further define the issues, and develop a methodology for
conducting their study consistent with guidelines
established.by PRP and the project management staff.
The methodology developed for the-first of the six agency
task teams will be a prototye for the other agency teams.
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MASTER SCHEDULE
FEDERAL DATA PROCESSING REORGANIZATION STUDY
J J A S 0. N? D , J F
Project Management Staff
obtain-Public Comments on Issues
Develop Study Plan
Coordinate Study Plan
Coordinate Team Activities
Short Term Special Projects
Obtain Public Comments on Alternatives
Consolidate Options and Views
Decision by President
Task Teams Addressing Agency Specific Issues
Human and Community Agencies (HEW, DOL, VA)
National Security Agencies (DOD)
Small ADP User Agencies (SEC, USITC, FHLBB, CAB)
National Resources Agencies (USDA, DOI)
General Govt. Agencies (Treasury, DOJ)
Science & Tech. Agencies (NASA, EPA, DOT, NSF)
Task Teams Addressing Government-Wide Issues
Acquisition'Process Issues
Operational Management Issues
Standards Issues
Personnel Issues
Organization and Central Policy Issues
M M T J
Q
I -V
V
L_v
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AGENCY TASK TEAMS
A high priority has been placed on addressing program agency
management problems early in the study for several reasons:
? Agency management problems which have led to greater
central regulation and control should be resolved by
strengthening the management of these functions with-
in the program agencies rather than increasing central
regulation and control.,
? Opportunities for more effective use of computer technology
in the delivery of Federal services can best be realized
through actions by agencies responsible for the management
of these programs.
? Investment decisions on the use of computer and communica-
tions technology are the responsibility of program agencies.
? Strengthening the management of these functions within
agencies is consistent with the President's policy on
Cabinet Management.
Six task teams will focus on problems related to agency
application of information technology. In particular, they
will examine agency decisionmaking processes to determine
how mission requirements are linked with data processing
investment decisions. These teams will also seek agency
views on the government-wide data processing problems to
be addressed by the functional task teams.
Five of the six teams will focus on large computer user
agencies grouped by similarity of agency.missions. The
other team will focus on the unique ADP management pro-
blems of agencies which are relatively small users of
technology.
Major Problems and Opportunities
1. Existing processes have frequently denied agency top manage-
ment the opportunity to make fully informed data processing
investment decisions which have long term implications on how
effectively and efficiently the agency will perform its mission
in the future. Too often decisions which should be made by top
management are left to individual program managers or the data
processing service organizations. This has often resulted
in unnecessary duplication and a proliferation of systems
and computer installations which do not effectively serve
the corporate needs of the agency.
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2. Technology has not been applied to its full potential
in the delivery of Government.services. At the same time,
it has been unnecessarily applied to the processing of
large volumes of data without adequately looking at the
reasons for collecting the data or the potential use of
the data to improve decisionmaking or the delivery of
services. In many cases, the application of computer
technology to Government processes has resulted in slower
service and a higher level of inaccuracy than was intended.
It has also been applied without adequate consideration of
the needs to minimize the collection of unnecessary per-
sonal data and the establishment of safeguards to minimize
the risk of inadvertent or deliberate misuse of personal
information. As a result, the computer is often viewed
by the public as a device which frustrates rather than
facilitates the delivery of public service and infringes
upon individual privacy. These difficulties are not
generally the result of technological inadequacies but
appear to result from the fragmentation of responsibilities
within the agencies for planning, managing and using
computers.
3. Inadequate advance planning of computational requirements
has resulted in numerous problems, including unnecessary last
minute sole source procurements, delivery of equipment before
facilities were available to house it, activities being auto-
mated without a cost benefit analysis or proper consideration
of national issues such as privacy and security, computational
resources being'acquired that were mismatched to agency
mission requirements and vendors inclurring significant bid,
proposal and testing costs for acquisitions that were can-
celled before award.
4. Agency budgets for computer and communications resources
are frequently justified on the basis of incremental increases
in capacity or service performance terms (e.g., job rates,
turnaround rates, etc.) which are not clearly supported by
the programmatic needs for the services or the benefits to
.be gained by the use of technology. The introduction of
zero-base budgeting for all Federal programs provides an
opportunity to develop more meaningful analyses and justi-
fications for the use of technology and to link technological
applications to program mission needs.
5. Comments received from many agencies which are relatively
small users of technology indicate that they do not have
ready access to the wide variety of highly specialized skills
and knowledge necessary to effectively automate some of
their activities, to avoid repeating past failures of other
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agencies in similar applications, to operate within the
highly-technical and complicated rules and regulations which
exist and to obtain and maintain a high quality source of
computational support..
Other Issues to be Considered
The following subjects have been identified through agency
and public comments as being of deep interest and concern.
Agency task teams will investigate these subjects to identify
agency experiences in these areas and to provide input to
the functional cross-cutting teams which are addressing
these subjects in detail.
? Application performance measurement
? Cost accounting and control
? Management of computer operations
? Software. management
? Standards
? Personnel management
? Contracting policies and practices
? Computer security
? Audits of computer operations
Potential Benefits
? Improved delivery of services to the public.
? Better planning and identification of requirements.
? Clearer assignment of responsibility for achieving innova-
tive and effective use of computer and -communications
technology.
? Greater economy and efficiency of operation resulting in
reduced cost to the taxpayer.
? More effective use of the technology.
? Reduced overlap and duplication in applications and facilities.
? More effective implementation of the requirements of the
Privacy Act of 1974.
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ACQUISITION TASK TEAM
The acquisition of data processing resources is a complex
and controversial issue which involves Federal agencies,
GSA, OMB, Congress, GAO and private industry. There has
been growing criticism that the current acquisition process
is burdensome, time-consuming and inhibits the effective,
efficient and economical use of data processing resources.
The comments received reflect widely divergent views on
the causes of the problems and potential solutions. There
is a strong consensus, however, that the failures of the
existing process must be considered in a broader context
than the current emphasis on hardware procurement.
Major Problems and Opportunities
1. Adequate consideration of alternative sources of supply
for data processing services has not been occurring through-
out the Federal Government. An agency's data processing
requirements can theoretically be satisfied through a number
of means including use or expansion of its own computation
capability, use of other agency computers, use of centrally
operated service centers or use of commercial time-sharing
services. Existing processes for considering the alternatives
have not worked. There is a strongly held point of view that
the existing process places an imbalanced emphasis on the
procurement of equipment. The current division of responsi-
bility for various portions of the acquisition process con-
tributes to the problem. Different organizations have
responsibility for the sharing program, the excess equipment
reutilization program, procurement of services and various
hardware procurements. Each has issued separate procedures
which are not integrated. In addition,.there are signifi-
cant differences of opinion on the appropriate distribution
of responsibilities between agencies and the GSA.
2. It currently takes 3-5 years to procure a major data
processing system.. This long lead time often results in
significantly increased costs to the agency, private firms
and taxpayers. In some cases, the delays have been so long
that the equipment is no longer appropriate for the agency's
needs by the time it is delivered. Some comments received
question whether the Federal Government is taking full advan-
tage of current technology to increase productivity since
studies have indicated that the median age of the Government's
inventory of computers is approximately six years older than
that of the private sector.
3. There has been substantial criticism that the current
acquisition process does not provide an appropriate level
of competition. Comments from both public and private
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sector organizations indicate very strong differences-of
opinion on changes that should be made to Federal procure-
ment policies and practices to,achieve an appropriate level.
The concerns and differences of opinion fall into three
general areas: (1) apparent inconsistencies in Federal pro-
curement practices for services, hardware,, software and
other specific components; (2) different views on trade--offs
between short term and long term benefits of competition;
and. (3) differing interests of various public and private
organizations.
Other Issues to be Considered
? The implications of. technological developments on current
procurement policies.
? Operation of the ADP sharing program.
? The relationships between ADP procurement policy and
other Federal Procurement Policies.
? The method of financing ADP procurements.
? Multi-year leasing.
? Interim upgrade policies.
The acquisition of software, maintenance services and other
contract services.
? The use of functional specifications.
Cost considerations-in the evaluation of ADP systems; e.g.,
life cycle costs, conversion costs, etc.
Potential Benefits
? Cost reductions as a result of lower administrative expenses,
elimination of unneeded purchases, less paperwork, increased
competition and better decision rules.'
Better delivery. of Government services through timely acqui-
sition of appropriate technology to service public needs.
? Reduced overlap and duplication of authority and regulations.
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OPERATIONAL MANAGEMENT TASK TEAM
The operational management task team will address issues
pertaining to the design of systems and the management of
data processing operations.
Major Problems and Opportunities
1. Automated systems frequently fall short of meeting
management's expectations. Plans for integrating the new
automated systems with on-going work processes are fre-
quently not sufficiently defined before system development
efforts are initiated; system development is frequently
initiated before system goals and design parameters are
clearly defined and approved; responsibility for develop-
ment is frequently delegated with only minimal system design
and test controls; and systems are frequently placed in an
operational mode before they have been adequately debugged.
Recent GAO reports have served to highlight improper payments,
unnecessary purchases and other wasteful actions that have
resulted from poorly designed computer systems.
2. Many opportunities for increasing the operational effi-
ciency of computer applications and operations are being
overlooked. Programs designed for earlier generations of
computers are being operated at suboptimal levels on newer
equipment. Incompatible programs, operated in the same
computer environment, are reducing overall operational
efficiency. Evolving hardware and software performance
measurement techniques can be used to identify ways of in-
creasing operational efficiency. Few installations have an
adequate way of gauging how well its resources are being
used. Standards for measurement of productivity should be
established for all Federal computer installations.
3. Unnecessary duplication of software development and
procurement is significantly increasing the cost of.Federal
data processing operations. Currently there are only
limited mechanisms to enhance the opportunities for
sharing computer programs developed or purchased by the
over 3,400 Federal installations. Software investment
decisions. are often made at relatively low levels in the
organization with virtually no central management review.
4. Federal data processing operations are frequently not
subjected to competitive market pressures and therefore do
not have the necessary incentive to keep costs to a minimum.
Users and management frequently do not know the full cost
of using computers to serve their needs and consequently
management decisions to use in-house data processing resources
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are made without knowing the full costs. Many agencies do
not identify or charge an appropriate portion of. their over-
head costs for their computer operations. In other cases
only direct or "out of pocket" costs are allocated or
charged. The lack of full cost data for Government computer
operations has precluded meaningful analysis of the compa-
rative costs of Government operations in relation to
commercial services.
Other Issues to be Considered
? Establishment of priority mechanisms for scheduling work-
load.
? Development of security measures to protect both the data
processing facility as well as the data.
Potential Benefits
? Better delivery of Government services through development of
systems which are more responsive to public and agency manage-
ment needs and more responsive and error free operations.
? Better protection of personal, proprietary, classified. and
other sensitive data.
? Lower overall costs as a result of greater sharing of opera-
tional experiences, reduced duplication of development: effort,
lower system development costs, improved system performance
through better management. techniques and elimination of
unneeded software development.
0 Better measurement and evaluation of the effectiveness of
systems and operations and accounting of full costs operations.
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14
The development and implementation of effective government-wide
standards for data processing equipment, software and manage-
ment procedures has the potential of reducing the need for
noncompetitive procurements, facilitating the transfer of
technology between agencies and providing opportunities for
achieving significant cost savings. However, there has been
much criticism that the standards program has never achieved
its expected level of effectiveness and therefore, the poten-
tial benefits of standards remain unrealized. There appears
to be general agreement that the existing Federal data pro-
cessing standards program needs to be reevaluated and
strengthened but in a manner which will not stifle competition
or preclude the use of new technology.
Major Problems and Opportunities
1. The lack of goals and objectives for the Federal data
processing standards program has resulted in a large number
of standards activities which are frequently criticized as
lacking focus. or direction toward the resolution of major
Federal problems such as reducing software conversion costs,
increasing the portability of programs, reducing program
maintenance costs, etc. The large number of concurrent
standards development activities also increases the costs
to agencies and industries participating in these
activities.
2. Methodology has hot been developed for evaluating the
potential costs and benefits of proposed standards. As a
result, management is frequently asked to-approve the
adoption and use of standards without knowing the merits or
consequences of the decision they are being asked to make.
3. Standards which have been developed have not been
effectively implemented. There is substantial disagree-
ment on reasons why existing standards have not been
implemented. Many hold the view that there is no incentive
for the agencies to implement existing standards because the
benefits of the standard to either them or the Government as
a whole have not been demonstrated. Others hold the view
that standards have not been implemented because no Government
agency has authority to force.. other agencies to implement and
use standards.
Other Issues to be Considered
? The Federal Government's use of standards developed by"the
private sector.
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? Federal participation in the development of voluntary
commercial data processing standards.
? The proper role for NBS in the development, implementation
and enforcement of data processing standards.
? Identification of areas where standards would be helpful
but do not now exist.
? Development of a mechanism for measuring the actual benefits
of standards against expected benefits.
Potential Benefits
? Clarify appropriate Government roles and organizational
responsibilities for computer and related communications
standards.
? Reduce the time and costs associated. with standards develop-
ment efforts.
? Eliminate unnecessary or marginal standard development
activities.
0 Eliminate overlap and duplication in standards development
activities.
? Improve quality of data processing services.
Improve transfer of technology among agencies.
? Avoid acquisition of marginal quality products and services.
? Increase competition.
? Reduce costs of operations.
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DATA PROCESSING PERSONNEL TASK TEAM
Competent and highly motivated people are the most important
resource required to achieve effective and efficient use of
computer and related communications technology. Personnel
costs also represent the largest element of Federal data pro-
cessing costs. In fiscal year 1976, Federal agencies spent
over $1.6 billion to pay for salaries and benefits of approx-
imately 111,000 civil servants engaged in data processing
activities. This represents over 48% of the Government's
expenditures for data processing. In addition, over $750
million was spent for commercial support services such as
systems analysis and programming, computer operations and
maintenance. Most of these expenditures are for people
intensive activities.
Major Problems and Opportunities
1. Agencies are experiencing difficulty in hiring and retain-
ning the skilled people necessary to assure effective utiliza-
tion of technology. Classification systems and recruitment
practices do not reflect today's highly specialized and
changing skill requirements. Skills of Government employees
are not adequately maintained through incentive structures,
training programs, mandatory skill testing and certification.
programs or other alternatives.
2. The trend toward specialization in certain data processing
jobs such as systems software, performance measurement, program-
ming, etc. has created a conflict between an agency's need
to keep qualified and skilled personnel in-specialized areas
and the need to broaden individual skills to enhance their
opportunity for promotion. The current pay incentive structure
motivates many civil servants to leave highly specialized.
jobs at the same time that the Government's need for highly
specialized skills is increasing. Concurrently, highly competent
individuals with specialized technical skills who do not
desire administrative work or lack the aptitude for such
work frequently leave the Government to achieve both job
satisfaction and better pay in the private sector. The trend
toward centralization of data entry, word processing and
other repetitive functions, where efficiencies can be realized
through specialization, has also created a number of morale
and job satisfaction problems.
3. Data processing is generally viewed as a technical support
speciality and not as an integral part of general line and
functional management. As a result, data processing questions
are not integrated into agency decisionmaking or policy setting;
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 . Approved For Release=.$01/06/09 : CIA-RDP84-00933R000400WO12-6
communications between computer system developers, operators
and users are ineffective; and responsibility for development
and operation of systems is not appropriately shared.
4. New tools, and techniques which promise major increases in
personnel productivity have been and are being developed, e.g.,
DBMS, structured programming. etc. Job classifications and
other elements of the Government's personnel management have
not been adjusted to allow the Government to reap full benefit
of these developments.
Other Areas to be Considered
? Actions needed to stimulate and support a more effective
distribution of ADP personnel resources, e.g., to develop-
ment vs. maintenance.
? The need for computer and communications training for general
line, functional and administrative personnel.
? The effects of contracting for computer services on:
The Government's ability to effectively utilize tech-
nology.
The Government's ability to maintain state-of-the-art
skills.
New skill requirements for defining and accepting
delivery of contracted goods and services.
? Individual agency training programs in relation to Civil
Service Commission and other control agency training
programs.
Potential Benefits.
? Increase ability to hire qualified people with less red
tape and paperwork.
? Increased ability to retain skilled people.
? Greater morale and job satisfaction.
? More effective use of technology.
? Higher productivity.
? A more appropriate balance between in-house and contractor
personnel.
? Reduced personnel costs.
0 Increased esteem of the data processing community.
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 Approved For Release 20W/06/09: CIA-RDP84-00933R000400OW12-6
ORGANIZATION AND CENTRAL POLICY TASK TEAM
A number of fundamental issues have been raised about the way
in which the Federal Government is organized to manage its
data processing resources. This team will address (1) the --
roles and responsibilities of the central policy making
agencies (OMB, GSA, and NBS) and their relationships to those
of the user agencies, (2) alternative organizational options
for fulfilling Federal data processing requirements, and
(3) specific areas of centralized policy concern or
opportunities for improvement which are not being addressed
by the other task forces. The activities of this team have
been scheduled late in the project so that they have the
benefit of the detailed analysis of specific problems per-
formed by the.other task teams.
Major Problems and Opportunities
1. The current division of responsibility for policy
guidance on computer and related telecommunication activities
between OMB, GSA, Commerce and CSC is not clearly under-
stood and has created considerable confusion. Public
Law 89-306, the Brooks Act, assigned to the Director of the
Bureau of the Budget "fiscal and policy control" over the
authorities which the Act conferred upon the Administrator
of General Services and the Secretary of Commerce. In 1973,
this general mandate was split by Executive Order 11717
which transferred OMB's policy development functions and
associated personnel to GSA and the ADP standards approval
responsibility and personnel to Commerce. In 1975 the
Justice Department's Office of Legal Counsel found that
Executive Order 11717 retained "policy formulation" responsi-
bility in OMB. The net effect of these shifts and subtle
definitional differences has been to confuse the basic
accountability for issuing clear, concise policy. The con-
fusion in central management responsibility has resulted in
a proliferation of regulatory procedures and rules as well
as overlapping reporting requirements imposed on agencies by
OMB, GSA and Commerce.
2. The current semicentralized arrangement of responsibil-
ities for Federal data processing management was established
in the mid 1960's based.on the problems which were current
at that time. More than a decade has passed and technology
has advanced substantially, markets have changed, much
experience has been gained and the use of computers has
expanded into many new areas. Major alternative strategies
for meeting Federal data processing requirements in light
of current technology should be evaluated.
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 Approved For Release 2,1/06/09 : CIA-RDP84-00933R0004.0004p12-6
3. The technology of computers and teleprocessing is becoming
increasingly complex. Specifically, the differences between
telecommunications and computing, minicomputers, microcomputers,
and office machines are becoming less and less distinct.
Organizational responsibility and oversight for computers,
communications and office equipment are divided among a number
of agencies and bureaus. The result has been the issuance of
management policies and procedures which fail to recognize
the similarity and interrelationships of the technology, are
often overlapping and sometimes inconsistent. This has created
confusion, uncertainty and suboptimization of the management of
these resources.
Other Issues to be Considered
? Sharing of data between the executive and legislative branches.
? Improvements to the ADP Management Information System.
? Policies pertaining to Federal information processing require-
ments placed on State/local government.
Potential Benefits
? More dynamic leadership for data processing issues in
the executive branch.
? Better balancing of the sometimes conflicting objectives
of mission responsiveness and governmental efficiency.
? More clearly articulated and concise policy emanating
from a reduced number of sources.
? Reduction in reporting burden and increased effectiveness
in agency planning.
? A policy posture which encourages rather than discourages
more effective use of technology.
Approved For Release 2001/06/09 : CIA-RDP84-00933R000400010012-6
 SUBJECT
Approved For Release 2"1/06/09 : CIA-RDP84-00933R0004000'A018&_ 77
Reply to memo from OMB re draft of Fed. data processing reorg. study.
Ingham
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