COPIER MANAGEMENT CONSOLIDATION EXECUTIVE SUMMARY

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP85-00809R000300090013-0
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 14
• Document Creation Date: December 20, 2016
• Sequence Number: 13
• Content Type: REPORT

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COPIER MANAGEMENT CONSOLIDATION
EXECUTIVE SUMMARY
Although the Printing and Photography Division (Pi.PD)
is charged by the Director of Logistics to approve all
acquisitions of Agency copying equipment, and to insure the
cost effectiveness and efficient utilization of such equipment,
the management of Agency copiers remains to a great extent a
decentralized activity. Under the current system equipment
is acquired on a piecemeal basis. Furthermore, P$PD is not
able to enforce its recommendations. As a result the full
savings potential available through life-cycle costing and
equipment purchase, equipment sharing and possible copy
center establishment, competitive procurement of equipment,
and more precise alignment of equipment to copying volume
requirements cannot be realized.
Alternatives to the current situation may be listed in
order by degree of centralization:
1. Total budget consolidation with the establish-
ment of a comprehensive copier management system.
2. P&PD given performance certification authority.
3. Improvement of existing management procedures.
The first alternative involves the consolidation of all
funds in FY-82) budgeted for Agency copying
machines exc u i.ng supplies). This would allow the
immediate benefits of easing the administrative burden in
Procurement Division (PD) and Audit and Certification Division
(A$CD), and would permit savings resulting from needed
equipment changes. More importantly, competitive procurement,
a planned equipment purchase program, and machine sharing
would result in a substantial reduction in overall copier
costs. The potential for even greater savings seems feasible
through the establishment of controlled copy centers. Competi-
tive contracting alone could reduce costs by as much as
This alternative does require at least an additional
one and one-half positions devoted to the system in order to
insure that the present level of services is maintained,
that procurement and financial activities are coordinated,
and that maintenance and supply problems are handled promptly.
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Also, this alternative requires that the Office of the
Comptroller be able to justify to Office of Management and
Budget examiners the copier program as a whole, for it will
be presented as one lump sum budget figure.
The second alternative is a measure that would help to
alleviate the administrative burden without changing the
present management structure. If PEPD were allowed to
certify for services received on behalf of all users, its
computerized report of monthly usage would be used to verify
costs for each machine. This would allow PD to consolidate
contracts by vendor, eliminating much of its paperwork.
A$CD would only need to work through P&PD to obtain performance
certification whereas certification is now required from
each user component. If it is desirable to manage copying
equipment at the lowest levels of the Agency organization,
this alternative allows it while streamlining administrative
functions.
The third alternative does not change the present
copier management system, but specifies management tasks to
be performed that would improve current procedures. Such
procedures include surveying the requirements of each equipment
request, more interaction between PePD and Supply Division
to solve supply problems, and tracking of maintenance problems.
It is recommended that the first alternative of total
budget consolidation, and the establishment of a comprehensive
copier management program be adopted. The management functions
should remain within PfPD where the technical expertise is
available to enhance decision making. The comprehensive
program should be established in consultation with the
Office of Security to satisfy security requirements. The
Agency Information Handling Architect should also be kept
informed of copier management developments.
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Copier Management Consolidation
Study
STAT
ystems Staff
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I. Introduction
This study has been conducted to present the benefits
that result from the centralized management of Agency copying
equipment. These benefits are evaluated from an economic
and administrative standpoint, taking account of the needs
of users within the Agency. It is apparent that a more
effective system of management is possible through carefully
planned changes.
In order to provide for a better understanding of
copier management in the Agency, a brief background section
is included. This is followed by a description and an
assessment of the present copier management system. Alter-
natives to the current system are presented and advantages
and disadvantages are explored. Recommendations are then
offered.
II. Background
The management of Agency copying equipment has evolved
from a completely decentralized arrangement to the current
system of centralized approval for rental requests, and
centralized accounting of existing usage. When copying
equipment became marketable during the early 1960's, Agency
components rented or purchased machines with little central
control other than technical advice given by Printing and
Photography Division (P&PD). In 1968 the Office of the
Comptroller'(O/COMPT) expressed concern over the rapid
growth of copiers, the growth in copying volume, and the
related costs. In response the Deputy Director for Adminis-
tration (DDA) recommended that the individual directorates
assume responsibility for determining the need for their
copiers, and for controlling their usage.
From 1968 to 1972 copying volume increased 140 percent,
an even faster rate than had been originally anticipated by
O/COMPT. Copy volume reached 34 million with costs exceeding
annually. This growth was attributed to a lack
of control at the directorate level, persistent sales techniques
of copier salesmen, and the lack of authority to enforce
PfPD equipment recommendations.
In November 1972 the DDA recommended that the CIA
Records Management Board develop a more efficient copier
management system. This led to the involvement of the
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Office of Information Services (OIS), and particularly the
Records Administration Branch (RAB) within OIS. RAB took
actions aimed at reducing copy volume. Copiers were included
in RAB's "Annual Inventory of Records Volumes and Equipment".
RAB surveyed usage through the collection of meter cards
prior to mailing the cards to the vendor. Cost analyses were
made of various models of copiers, alternatives to existing
equipment were discussed with vendors, and charts and literature
relating to equipment were disseminated to the Agency Records
Management Officers (RMO's). Efforts were made to involve
the RMO's in the management of copier utilization within
their areas of responsibility. Agency employees were advised
to refer calls from copy machine vendors to RAB in an attempt
to combat vendor "oversell" techniques. In January 1974
arrangements were made for RAB and P&PD to jointly review
all requests for copiers. The responsibility for approval
and managing of copying equipment was formally assigned to
OIS in August 1974 with the major portion of management
responsibility charged to RAB.
Over the period of RAB involvement substantial progress
was made in applying controls to the decentralized system.
For example, during FY-75 of the 35 requests for copiers
reviewed by RAB five were cancelled or modified for a cost
avoidance of During the same year RAB reviewed 56
existing copiers making recommendations to cancel or modify
48 machines. Twenty-three of these recommendations were
accepted for a cost avoidance of
In February 1976 responsibility for copier management
was transferred from OIS to the Office of Logistics (OL)
with the major management functions charged to P&PD. It was
felt that with the growing relationship between copier
technology and other forms of reprography and large-scale
printing P&PD could better assess copier applications and
procurements. The transfer was made with the understanding
that the RMO's would do much of the analysis and justification
of requests during the initial stages, that the DDA would
lend support needed to control copier activities, and that
one GS-06 position be transferred from OIS to P$PD.
III. The Present System
The Agency currently rents or owns approximately 300
copying machines. Total related costs are estimated at
annually, with a copy volume which exceeds 138
mil ion.
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The Director of Logistics is responsible for administering
an Agency-wide Copier Management Program through which the
acquisition of all copying equipment is reviewed and approved.
He is also responsible for the establishment of programs to
ensure the cost effective and efficient utilization of
copiers and related equipment P$PD is the focal
point of these responsibilities which include technical
approval for equipment requests, and the maintenance of a
computerized record of copier usage and costs. A discussion
of these functions along with related procurement and
financial procedures follows.
A. The Approval Process
The rental of a copier is requested via a Request
for Procurement Services (Form 2420). Upon determination
of the need for copying equipment a component completes
a Form 2420, and obtains certification that funds are
available. The request is then reviewed by the component
RMO who makes an assessment of the validity of the
component's requirements, and the suitability of the
requested copier. The request is then sent to the
directorate RMO for signature. At this point P$PD
receives the request for review. The Agency Copier
Manager (Systems Staff/ P$PD) determines if the requested
machine will meet minimum requirements at the least
possible cost. If this is not the case a negotiation
process will take place between the copier manager and
the requestor (usually through the RMO). If an agreement
cannot be obtained the copier manager will not sign the
request. The request will then be forwarded to the
Director of Logistics for a final decision. If the
request is approved in P1PD it is sent to Procurement
Division (PD) for the contract to be processed.
B. The Agency Copier Management System
Essential to the effectiveness of a copier manage-
ment system is an inventory of all Agency copiers, a
record of copy volume, and a record of all copier
related costs. P&PD maintains the Agency Copier
Management System (ACMS) for the accomplishment of this
task. The system provides for the maintenance of a
database that reflects any charges for machine use, and
any accessories associated with each copier on inventory.
It provides P&PD with a monthly report detailing each
machine's rental, maintenance, supply, and miscellaneous
costs. The major input to this system is monthly meter
readings of each machine which are sent to PIPD by each
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component on meter cards. After input to ACMS the meter
cards are sent to the vendors for the processing of
their bills. A major benefit of ACMS is that it provides
a means for the continuing review of cost and utilization
whereby recommendations may be made to reduce costs, or
to substitute more effective and efficient equipment.
C. Procurement Procedures
Previously, primarily due to budget decentralization,
a separate contract was written for each copying machine.
During FY-77 and FY-78, while P&PD began to purchase
copiers, it became feasible to write a consolidated
maintenance contract for these machines. In FY-81 PD
was able to consolidate rental equipment of the same
model, and of the same contract plan onto a single
contract, reducing the number of copier contracts from
177 to 88. This method of consolidation, by model and
contract plan as opposed to by vendor or by model
alone, allows the Office of Finance (OF) to pay invoices
without verification of each machine on a single contract.
The purpose of this consolidation is to ease some of
the workload in PD.
D. Finance Procedures
Audit and Certification Division (A$CD)/OF receives
all invoices from copier vendors, obtains certification
for receipt of services from the user components, and
will charge the accounts necessary to make payments. If
an invoice states only base rate monthly use charges
A&CD is able to verify without certification from the
user. If an invoice includes excess usage and charges
above the base rate, then meter readings on the invoice
must be verified and certified by the user component.
This necessitates contacting individual components
except in the case of Xerox invoices. Because Xerox
uses a two-ply card PEPD is able to send one set of
cards to AMCD as well as one set to the vendor.
Much progress has been made in improving the
management of copiers since the initial involvement of
RAB. While P&PD has continued to refine the system, it
appears that further improvements are possible. The
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present system's strength is that it meets the needs of
the Agency in terms of convenience and flexibility;
allowing management at the lowest levels the prerogatives
necessary to accomplish its various tasks. The weakness
of the system is that the piecemeal approach to the
acquisition of equipment, along with the lack of PFPD
authority to enforce its recommendations is neither
economically optimal nor administratively efficient.
1. Equipment Purchase
The judicious purchase of copying machines on
the part of P&PD has resulted in substantial cost
savings. A vendor will generally agree to service
purchased equipment for five years. P*PD will
consider a purchase only if purchasing a copier
will be cheaper than renting it for a period of 30
months or less, and only if the cost savings
effected will be 40 percent or more. During FY-77
and FY-78 P$PD purchased 58 copying machines which
included several high volume units. The total
estimated savings over the five years of guaranteed
maintenance is A proposal to purchase
smaller Savin convenience copiers that would save
up to is presently being considered.
In order to more completely capture the
potential savings available through equipment
purchase a comprehensive plan of purchase and
equipment replacement is needed. Such a plan
would require more flexibility in the movement of
copying equipment within the Agency. Under the
current system of decentralized budgets, there is
a reluctance to purchase, and a resistance to
change equipment on the part of user components.
In addition, purchases are made only from current
rental equipment after economic feasibility is
determined. Under a comprehensive purchase plan
it is possible to plan future purchases according
to user requirements, and solicit competitive bids
from several vendors.
2. User Acceptance of Recommendations
Through ACMS it is possible to review the
suitability of current equipment to volume require-
ments. During FY-79 Agency-wide equipment changes,
based on monthly volume, were recommended. The
cost avoidance of these changes totalled
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Of these recommendations, changes totalling
in cost avoidance were accepted. Of the remaining
recommendations 0 worth were ascertained to
be for valid requirements other than volume, e.g.,
collating. This left recommended changes worth
in cost avoidance that were not pursued
because of lack of personnel resources, and a lack
of leverage over the user components. It appears
that further savings are available given more
time, and greater authority to pursue them. Based
on FY-80 statistics there exists a savings potential
3. Equipment Sharing
With the budget authority for copiers centered
in the individual user components few components
share machines. This has resulted in the acquisition
of many small, convenience copiers where fewer,
more economical high-volume copiers could be
employed.
4. Administrative Problems
Both PD and A$CD are under a heavy administra-
tive burden due to the large number of copier
contracts and payment invoices. This burden has
caused delays in the renewal of contracts and in
payments to vendors. The recent implementation of
contract consolidation has reduced some of the
workload in PD, but has complicated bill paying
procedures in A&CD. For example, payment problems
in using the Contract Information System (CONIF)
due to the large number of offices listed on some
of the consolidated contracts. Also, it is antici-
pated that the amount of payments past due could
increase resulting from a situation of one office
on consolidated contract having insufficient funds
obligated. This delays payment on the entire
contract.
5. Other Management Issues
Certain improvements could be made in the
areas of repair and maintenance, supplies, and the
surveying of user requirements. Presently, no
system exists for tracking maintenance problems.
In the area of supplies, little communication
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exists between Supply Division (SD) and P&PD to
insure that the proper types, and sufficient
levels of supplies are maintained. In the area of
user requirements it would be. advantageous for
P$PD to take a more active role in surveying
users' needs in order to best satisfy copier
requirements.
IV. Alternatives to Improving the Present System of
Copier Management
A. Total Budget Consolidation
This alternative would involve the consolidation
of all funds budgeted for rental, maintenance, and
miscellaneous costs of all Agency o in machines.
This would amount to an estimated in FY-
82. Budgeted funds for copier supplies would remain in
Supply Division. This alternative calls for the
establishment of a comprehensive, centralized copier
management system, controlled by a component which
holds the budget responsibility for copiers. This
managing component would coordinate copier activities
throughout the Agency, working through the present RMO
structure and key operators assigned to individual
copying machines.
1. Advantages
- A consolidated budget facilitates competitive
procurement through the development of
standardized requirements. Once a package of
Agency requirements is developed bids may be
solicited through a Request for Proposal
(RFP). The terms of a contract awarded under
an RFP may be written so that the contract
may be extended for up to four years. This
avoids the annual installation and removal of
a large number of machines resulting from a
possible change in vendors. Based on
experience with automated data processing
equipment an RFP could save as much as 25
percent in rental costs. With copier rentals
the Agency could save up to Total
consolidation facilitates a competitive
contract arrangement because the managing
component would have the authority needed to
require the use of a particular type of
copying machine.
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A comprehensive management program permits a
coordinated plan of machine purchase. Such
an arrangement allows the planned budgeting
for such purchases, solicitation of competitive
bidding, and the more flexible movement of
equipment. With requisitions of specific
types of equipment from separate components,
comprehensive planning under the present
system is not possible.
Under a comprehensive copier management
system machines may be shared by components.
It is doubtful that many copiers would be
immediately eliminated. Rather, over time,
as new requests are evaluated, such sharing
arrangements can be made. This would help to
gain control of machine proliferation, and
eventually allow the replacement of smaller
copiers with more economical high-volume
machines.
Related to machine sharing is the possibility
of establishing copy centers. Copy centers
would both effect cost savings and enhance
security. In a report by the "Kampiles Task
Force", prepared under the direction of the
Director of Security, the recommendation was
made that all copiers "be located in registries
or document control centers, to be operated
only by information control specialists...".
Copy centers, however, could be implemented
only after further study. Factors to be
carefully considered are staffing requirements,
space requirements and the responsiveness of
copy centers to the needs of users.
A consolidated budget lightens the burdens
upon PD. With the RFP arrangement the number
of copier contracts is reduced to only a few.
Furthermore, the RFP precludes the need to
evaluate individual requests to ascertain the
lowest cost equipment available under GSA
schedule. Even without competitive contracting,
if all funds are in one account, PD could
write one contract for each vendor. As a
result renewals could be processed in a more
timely fashion.
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A consolidated budget also lightens the load
for AMCD. Only the managing component needs
to be contacted for certification of services
received. Also, ACMS will help to certify
services for each machine in an efficient
manner.
2. Disadvantages
- Budget consolidation would require the
justification on the part of 0/COMPT of one
lump-sum figure for all Agency copiers in the
budget of the managing component. Copying
equipment may be more easily justified when
it is shown supporting individual projects or
components. Consequently, a lump-sum budget
figure may be more susceptible to OMB cuts.
In order to effectively manage a centralized
copier system more manhours than are presently
devoted to copier management would be required.
At a minimum one and one-half additional
positions would be needed. To assure that
the present level of services is maintained
requirements must be surveyed first-hand.
Interaction is necessary between Supply
Division and the managing component. Service
problems must be tracked and investigated by
the managing component. Furthermore, the
managing component must have a working
knowledge of procurement and financial
procedures.
Budget consolidation may cause resentment
among user components resulting from a
perceived loss of control over copying
equipment.
B. P1PD Performance Certification
This alternative gives P&PD the authority to
certify for services received on behalf of all users.
The information which A$CD needs, and is solicited from
various user components to certify invoices, is meter
readings. Presently, P1PD receives meter cards for all
machines. This would allow P$PD to conveniently become
the focal point for certification.
2. Advantages
- This arrangement would allow PD to write one
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contract for each vendor. In order to con-
solidate contracts by vendor it is necessary
to verify the costs of each machine on an
invoice. This is possible by querying the
ACMS for the necessary data.
- This alternative allows AMCD to work through
one component, PFPD, to obtain performance
certification.
P?PD certification would help alleviate
administrative burdens without changing the
present management structure.
2. Disadvantages
- There are no significant disadvantages to
this alternative, other than it avoids the
possible cost saving opportunities of the
first alternative.
C. Improvement of Existing Management Procedures
This alternative would not change the present
copier management system, but specifies management
tasks to be performed that would improve current
procedures. These tasks include the following manage-
ment functions which are included in the total budget
consolidation alternative; surveying' component require-
ments for all requests, monitoring supply and service
needs, and coordinating procurement and financial
procedures.
1. Advantage
While not changing the current, decentralized
system, the implementation of such procedures
would effect a more responsive and efficient
copier management system. Cost savings as a
result of better decisions and prompt treatment
of supply and service problems would be
realized.
2. Disadvantage
- Currently, P&PD devotes approximately 40
percent of a GS-13 position and 60 percent of
a GS-07 position to copier management. To
effectively perform the described management
tasks it is likely that twice these resources
would be necessary.
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V. Recommendations
It is recommended that the alternative of total budget
consolidation, and the establishment of a comprehensive
copier management program be adopted. The cost savings from
competitive contracting alone should outweigh the disadvantages
of this alternative. Over time, cost reductions in the
total program should be substantial. Turning to the dis-
advantages, O/COMPT would be required to justify the program
as a whole, but the efforts to economize by the Agency
should be a positive factor. Secondly, the cost savings
realized would justify additional manhours or positions
which would need to be devoted to copier management.
Finally, if the copier management system is responsive to
the user, control over the equipment should become secondary.
It is also recommended that the authority for this
program remain with the Director of Logistics, with the
management functions delegated to P&PD. Care should be
taken in coordinating copier activities with a number of
Agency personnel. The Office of Security should be included
in any decisions to physically consolidate copier services.
The Agency Information Handling Architect should also be
kept informed of copier management developments. A care-
fully designed, comprehensive copier management program that
is coordinated with key Agency personnel should effectively
meet the needs of Agency users at a substantially reduced
cost.
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