OFFICE EVALUATION CONFERENCE - 30 NOV 79

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP85-00988R000200020007-2
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 6
• Document Creation Date: December 16, 2016
• Document Release Date: June 23, 2005
• Sequence Number: 7
• Publication Date: November 30, 1979
• Content Type: TRANS

Approved For Release 2005/07/12 : CIA-RDP85-00988R000200020007-2
OFFICE EVALUATION CONFERENCE - 30 NOV 79
(CHART 1) I WILL COVER THE FOLLOWING FOUR AREAS IN REVIEWING
THE PROCUREMENT DIVISION'S PERFORMANCE DURING FY 1979 -
PRODUCTIVITY, ACHIEVEMENTS, PROBLEMS, AND PROSPECTS.
(CHART 2) LAST YEAR'S PRODUCTIVITY WILL BE COMPARED WITH FY 77 AND
FY 78. FIRST, LOOKING AT WORKLOAD, THE NUMBER OF REQUI-
SITIONS DECREASED BY IOWEVER, LINE ITEMS
PROCESSED INCREASED BY THE TOTAL NUMBER
OF CONTRACTS AND PURCHASE ORDERS ISSUED INCREASED BY
OVERALL, FUNDED AND UNFUNDED ACTIONS INCREASED
(CHART 3) TWO MEASURES OF EFFICIENCY ARE ILLUSTRATED ON THE
CHART - THE RATIO OF DIRECT PERSONNEL COSTS TO NEGOTIATED
SAVINGS AND THE RATIO OF PERSONNEL TO LINE ITEMS PROCESSED.
BOTH ARE POSITIVE AND INDICATE THAT THE DIVISION IS OPERATING
EFFICIENTLY. I HAVE EXCLUDED THE NEGOTIATED COST SAVING
ATTRIBUTABLE TO THE SAFE CONTRACT BECAUSE OF ITS SIZE AND
THE NATURE OF THE CONTRACT.
(CHART 4) THE FLOW OF WORK IN THE DIVISION WAS ALMOST IDENTICAL
TO FY 78's, WITH THE EXCEPTION OF SEPTEMBER WHICH EVIDENCED
A DRAMATIC INCREASE BOTH IN ACTIONS PROCESSED ^ AND
DOLLARS OBLIGATED VER THE PRIOR YEARS.
IN SEPTEMBER, THE DIVISION PROCESSED CONTRACT ACTIONS
WHICH WAS
Loo
ABOVE THE STRAIGHT-LINE AVERAGE OF
KING AT THE DOLLAR SIDE, WE CONTINUE
STAT
25X1
25X1
25X1
25X1
Approved For Release 2005/07/12 : CIA-RDP85-00988R000200020007-2
 Approved For Release 2005/07/12 : CIA-RDP85-00988R000200020007-2
(CHART 5)
TO OBLIGATE A DISPROPORTIONATE AMOUNT IN THE FOURTH
QUARTER, PARTICULARLY IN SEPTEMBER. HOWEVER, I AM LESS
CONCERNED ABOUT THE TIMING OF DOLLAR OBLIGATIONS THAN
OF HAVING ADEQUATE LEAD TIME TO PROPERLY PLAN AND EXECUTE
A PROCUREMENT.
THE SOURCES OF REQUIREMENTS SERVICED BY PD REMAINED
STABLE WITH i)DA BEING OUR LARGEST CUSTOMER. DDA's SHARE
25X1
(CHART 6)
NE OF OUR OBJECTIVES IS TO ACHIEVE
A CLOSER RELATIONSHIP WITH THE LARGER REQUIRING OFFICES,
PARTICULARLY IN THE PLANNING PHASES OF THE PROCUREMENT
CYCLE.
I WOULD LIKE TO CITE SOME OF THE DIVISION'S ACHIEVE-
MENTS DURING THE PAST YEAR.
1) THE DIVISION HAS BEEN WORKING CLOSELY WITH OL's
SYSTEMS ANALYSIS BRANCH TO DETERMINE THE REQUIRE-
MENTS FOR A MANAGEMENT INFORMATION SYSTEM. IN-DEPTH
ANALYSES OF DIVISION WORK FLOWS AND ACTIVITIES HAVE
BEEN MADE, WE BELIEVE WE HAVE A SOUND AND OBJECTIVE
UNDERSTANDING OF THE WORK PROCESS AND WHAT OUR
REQUIREMENTS ARE TO FURTHER INCREASE EFFICIENCY AND
RESPONSIVENESS. OUR TARGET FOR COMPLETING THE
FEASIBILITY STUDY AND SYSTEMS REQUIREMENT DEFINITION
PHASES IS 5O APRIL 1980.
2) DEFECTIVE PRICE NEGOTIATION - THE DIVISION SUCCESSFULLY
NEGOTIATED A SETTLEMENT OF A DEFECTIVE PRICE AUDIT
ON FIRM FIXED PRICE CONTRACTS
Approved For Release 2005/07/12 : CIA-RDP85-00988R000200020007-2
I
25X1
 (CHART 7)
Approved For Release 2005/07/12 : CIA-RDP85-00988R000200020007-2
WE BELIEVE THIS
4)
IS THE FIRST SUCH NEGOTIATION ON AGENCY-FUNDED CONTRACTS.
I WOULD LIKE TO MAKE SOME OBSERVATIONS CONCERNING SOME
SIGNIFICANT FY 79 CONTRACT ACTIONS. IN THIS CHART,
TOTAL SYSTEMS LIFE SAVINGS IS EQUAL TO THE AMOUNT
SAVED AT NEGOTIATION PLUS THE OUT-YEAR SAVINGS BASED
ON THE SYSTEMS PROJECTED USEFUL LIFE AND THE
ACQUISITION STRATEGY EMPLOYED.
ITEM I IS OF INTEREST BECAUSE IT SHOULD NEVER HAVE
HAPPENED. THE ACQUISITION INVOLVED COMPETITION
THE LATTER WAS THE APPARENT
WINNER, BUT BECAUSE IT TOOK EXCEPTION TO PROVISIONS
OF THE GOVERNMENT'S SOLICITATION, IT WAS DISQUALIFIED.
CONSEQUENTLY, THE GOVERNMENT ACQUIRED A LESS EXPENSIVE
CPU THAT, SO FAR, HAS BEEN PERFORMING SATISFACTORILY.
ITEM 2 - THIS ACQUISITION ENTAILED REPLACING IBM-
OWNED TAPE DRIVES WITH A THIRD PARTY'S IBM TAPE DRIVES
AT A SIGNIFICANT SAVINGS. IBM REMAINS RESPONSIBLE
FOR MAINTENANCE OF THE EQUIPMENT.
Approved For Release 2005/07/12 : CIA-RDP85-00988R000200020007-2
25X1
 Approved For Release 2005/07/12 : CIA-RDP85-00988R000200020007-2
ITEM 3 - THE SAFE CONTRACT IS THE LARGEST AGENCY-
FUNDED SYSTEMS ACQUISITION TO DATE. A FULL-TIME
CONTRACTING OFFICER HAS BEEN ASSIGNED TO THE PROJECT
OFFICE.
ITEM 4 - THE APARS SYSTEM PRESENTED PD WITH SIGNIFICANT
PROBLEMS IN TWO AREAS - SPECIAL TERMINATION CHARGES
AND POSSIBLE FUNDING DEFICIENCIES, BOTH ISSUES WERE
SUCCESSFULLY RESOLVED. IT IS MY BELIEF THAT THIS TYPE
OF PROCUREMENT SHOULD BE DISFAVORED BECAUSE IT SEVERELY
CONSTRAINS COMPETITION AND RESTRICTS THE GOVERNMENT'S
FREEDOM TO REPROGRAM ACTIVITIES.
ITEM 5 - HSTS's SAVINGS WERE ACHIEVED BY REDUCING THE
LEASE-TO-PURCHASE PERIOD FROM 10 TO 7 YEARS.
ITEM 6 - THE SQUARE RADOME PROVES THE VALUE OF
COMPETITION. WE HAD PREVIOUSLY PROCURED 8 UNITS AT
$20,750 EACH. THIS COMPETITION REDUCED THE UNIT
PRICE TO $13,350 OR 36%.
ITEM 7 - THE SECURE POUCH SYSTEM ALSO DEMONSTRATES
THE VALUE OF COMPETITION. THE CONTRACTING OFFICER
INSISTED ON COMPETING A FOLLOW-ON REQUIREMENT. AS
A CONSEQUENCE, A NEW CONTRACTOR, ROPOSED A PRICE, 25X1
FOR AN IDENTICAL QUANTITY, OF OMPARED TO THE 25X1
ORIGINAL SOLE SOURCE CONTRACTOR'S PROPOSAL OF I 1. 25X1
ITEM 8 - THE ACQUISITION OF TRACTOR TRAILERS WAS IN
RESPONSE TO AN URGENT OPERATIONAL REQUIREMENT, APPROVED
BY THE NSC,
25X1
Approved For Release 2005/07/12 : CIA-RDP85-00988R000200020007-2
 Approved For Release 2005/07/12 : CIA-RDP85-00988R000200020007-2
HE NORMAL ACQUISITION TIMEFRAME FOR
(CHART 8)
TRACTOR TRAILERS IS 6 TO 9 MONTHS. THE DIVISION
UNDERTOOK A CLASSIFIED COMPETITION AND WAS ABLE TO
SATISFY THE REQUIREMENT IN 4 MONTHS. THIS ENTAILED
SECURING THE ASSISTANCE OF THE DEPARTMENT OF COMMERCE
FOR EXPEDITED DELIVERY OF SPECIAL STEEL STRUCTURES.
EARLIER, I STATED THAT THE DIVISION PROCESSED AN
ABNORMALLY LARGE NUMBER OF CONTRACT ACTIONS DURING THE
LAST MONTH OF THE FY. THIS CHART ATTEMPTS TO LOOK AT THE
INPUT SIDE OF THE PROBLEM. ITS MESSAGE IS STRAIGHTFORWARD.
IF WE ARE FORCED TO ACCEPT NEW PROCUREMENT REQUIREMENTS
THROUGH THE END OF THE FY, WE CANNOT UNDERTAKE NECESSARY
SERVICE 25X1
CONTRACTS THAT ARE EFFECTIVE ON I OCTOBER OF EACH FY.
FURTHER, THE QUALITY OF EFFORT NECESSARILY SUFFERS WHEN
THERE IS INADEQUATE TIME TO DO THE JOB. THE SOLUTION, I
BELIEVE, IS TO UNDERTAKE CONTINGENCY PLANNING EARLY IN THE
FY, WITH EACH MAJOR REQUIRING OFFICE AND THE COMPTROLLER,
WITH THE OBJECTIVE OF IDENTIFYING PRIORITY REQUIREMENTS
AND FUNDING SUCH REQUIREMENTS IN JULY OR EARLY AUGUST. ALL
OTHER REQUIREMENTS, EXCEPT FOR THOSE SUPPORTING OPERATIONS,
SHOULD FLOW FORWARD TO THE NEXT FY. THIS APPROACH WOULD
PERMIT THE DIVISION TO FOCUS ITS ENERGIES ON PLANNING AND
EXECUTING RECOGNIZED PRIORITY REQUIREMENTS.
Approved For Release 2005/07/12 : CIA-RDP85-00988R000200020007-2
 Approved For Release 2005/07/12 : CIA-RDP85-00988R000200020007-2
FINALLY, I WOULD LIKE TO ADDRESS PROSPECTS FOR THE
COMING YEAR. IT IS OUR INTENTION TO ACTIVELY SOLICIT THE
COOPERATION OF OUR MAJOR REQUIRING OFFICES IN DEVELOPING
MAJOR CONTINGENCY ACQUISITIONS FOR PLACEMENT IN THE
FOURTH QUARTER IN LIEU OF THE HISTORIC VOLUME OF LOW-
DOLLAR REQUISITIONS RECEIVED.
As PREVIOUSLY STATED, THE DIVISION WILL BE DEEPLY
INVOLVED IN COMPLETING STUDIES AND ANALYSES THAT WE BELIEVE
WILL CONCLUDE IN THE DEVELOPMENT OF AN MIS. THIS SYSTEM
WILL GIVE US THE NECESSARY MANAGEMENT BASE TO INCREASE
EFFICIENCY AND RESPONSIVENESS TO CUSTOMER REQUIREMENTS,
FINALLY, WE ARE IN THE PROCESS OF DEVELOPING PROCEDURE
MANUALS THAT WILL ASSURE A GREATER CONSISTENCY IN THE
EXECUTION AND MANAGEMENT OF PROCUREMENTS AND WILL MATERIALLY
ASSIST US IN TRAINING NEW PROCUREMENT PERSONNEL.
Approved For Release 2005/07/12 : CIA-RDP85-00988R000200020007-2