PRESIDENT'S PRIVATE SECTOR SURVEY ON COST CONTROL (GRACE COMMISSION)

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP87-01146R000100010004-8
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 9
• Document Creation Date: December 16, 2016
• Document Release Date: July 21, 2005
• Sequence Number: 4
• Publication Date: June 27, 1984
• Content Type: MF

MEMORANDUM FOR: Deputy Director for Administration
FROM: Daniel C. King
Director of Logistics
SUBJECT: President's Private Sector Survey on Cost
Control (Grace Commission)
REFERENCE: Memo to DDA from D/L, dtd 5 March 1984, Same
Subject, w/attachment (OL 4045-84)
1. Forwarded herewith is a progress-report on Office of
Logistics (OL) efforts aimed at adopting/implementing certain of
the Grace Commission recommendations on:
A. Procurement/Contracts/Inventory Management.
B. Real Property Management.
C. Department of Labor.
2. Following our initial review of these reports in
February of this year, we reported to you that many of the
recommendations contained therein were not applicable to the
Agency. For those recommendations that were applicable, we
noted that the majority would be handled via LIMS. Finally, we
stated that, where possible, OL would undertake efforts to
adopt/implement the remainder of the recommendations; as time
and resources permitted, and would report the results of our
efforts to you. Attachment A represents our report which covers
both the recommendations that will be handled by LIMS and those
that are being accomplished by OL components.
3. If there are any questions pertaining to our report, the
focal point for this activity is the Information and Management
Support Staff, OL, extension
Daniel C. King
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PROCUREMENT/CONTRACTS/INVENTORY MANAGEMENT
Recommendation
PROC 10-2: Establish guidelines for and regularly adjust
purchasing and inventory carrying costs
Action
A standard inventory pricing policy that would cover the
cost of replacing damaged, missing, or obsolete stock is an
action item to be reviewed jointly by Booze, Allen and
Hamilton and OL as part of LIMS.
Recommendation
PROC 10-3: Expedite the modernization of computer
facilities to provide accurate status of stock and to
improve the level and accuracy of demand forecasts.
Action
LIMS will provide the necessary tools to improve the
accuracy of Economic Order Quantity (EOQ) forecasting in
the Agency. Control and management of inventories is to be
delivered in October 1985, in the LIMS Work Package 2.
Recommendation
PROC 11-1: Implement appropriate interim measures as a
short-term strategy for quick payoff in improving inventory
visibility and management.
Action
Improving inventory visibility and management is an
objective of LIMS. The current Inventory Control System
(ICS) will be absorbed by LIMS when Work Package 2 is
delivered in October 1985. LIMS benefits will improve
inventory management.
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Recommendation
PROC 11-2: Pursue ADP modernization by:
(1) Instituting a pilot program to install "tailored"
commercial ADP software packages in conjunction with
the use of minicomputers.
(2) Studying the use of commercial ADP services and
equipment with emulation capability if needed, to
augment overloaded facilities.
(3) Emphasizing the use of existing, modernized, or
planned systems (internally) to avoid extended
development time.
Action
Condor Data Base Management Systems are being used on WANGS
for Agency Standard Automated Property System (ASAPS) like
system to be used overseas.
Recommendation
PROC 12-1: Initiate a program of "wall-to-wall" inventory
taking on a periodic basis.
Action
Wall-to-wall inventories are currently being completed on a
three-year cycle (one-third of the inventory each year).
Recommendation
PROC 12-2: The LOGMARS (bar coding) implementation plan
should be implemented.
Action
Funds II were transferred to ODP in June 1984 for the
development of a plan to implement Bar Code technology at
prior to LIMS. Bar Coding will be part
of LIMS.
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Recommendation
PROC 19-1: Develop accountability among
procurement contract management personnel/supervisors for
making awards to known poor performers or for failing to
terminate for default, to debar or to suspend such
perfomers when circumstances clearly justify doing so.
Action
Through a somewhat cumbersome manipulation of the CONIF/ICS
data bases, Procurement Division (PD), OL has reviewed the
previous twelve months contracts (with deliverable items)
and identified those vendors who appear to be poor
performers in meeting promised delivery schedules. PD
intends to conduct a detailed analysis of those contracts
and take appropriate action with the vendors.
As a result of the above analysis, PD has identified data
and reporting requirements for inclusion in the procurement
package of LIMS. This should provide systematic
identification of poor vendor performance, and provide the
data needed to take remedial action.
Recommenation
PROC 19-2: Establish information system on vendor
performance
Action
The procurement package of LIMS will provide the capability
to establish and maintain an information system on vendor
performance.
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Recommendation
PROP 1-1: Establish in writing a clear, concise goal for
Federal real property management.
Action
Real Estate and Construction Division (RECD) in conjunction
with the Information and Management Support Staff (IMSS),
OL and other appropriate offices in the Agency are working
to update concerning Real Estate and
Construction. Our purpose is to more clearly define real
estate management policy and procedures as they apply to
the Agency.
Recommendation
PROP 1-3: Select and obtain the most appropriate software
and hardware computer system for handling real property
data.
PROP 1-4: Develop a working management plan for real
property within no more than two years.
Action
While these recommendations principally refer to
deficiencies in the GSA data collection, RECD is taking
aggressive action to develop an automated real property
system which will provide the necessary data to manage
property assets more efficiently. RECD is currently in the
process of inputting data into the system.
In addition to the specific recommendations mentioned
above, RECD is continuing to work to upgrade the level of
professionalism in the real estate disciplines so it can
more effectively manage the Agency's real property holdings.
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Recommendation
PROP 6-1: A comprehensive (real property) maintenance
productivity program should be introduced.
Action
The Agency reached agreement with the General Services
Administration on 06 February 1984 to take over maintenance
and operation (M&O) of our Headquarters Building beginning
in FY 1985. A contract was subsequently signed with an M&O
contractor to assume this responsibility. The contractor
will commence operations 01 October 1984.
Recommendation
PROP 6-2: Control responsibility (for real property
maintenance) should be established within each Agency.
Action
Real property maintenance in Headquarters and Washington
Metropolitan Area offices is the responsibility of the
Headquarters Operations, Maintenance and Engineering (HOME)
Division, OL. Organizational changes have been implemented
which consolidates all logistic support for the
Headquarters Building in this multi-discipline division
located at the Headquarters Building.
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Recommendation
Labor 11-1: Place all procurement activities under the
direct supervision of a single agency--the Office of the
Assistant Secretary for Administration and Management--at
both the National and Regional office levels.
Action
This recommendation deals with the placement of procurement
activities under the direct supervision of a single
agency. While this recommendation was for the Department
of Labor, we concur and support adopting the recommendation
by doing away with the dual delegation of procurement
authority. While this is a desirable objective, the
Director of Logistics has only recently discussed this
matter with the Deputy Director for Science and Technology,
with little encouragement to implement.
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STAT
ROUTING AND RECORD SHEET
SUBJECT: (Optional)
President's Private Sector Survey on Cost Control (Grace Commission)
FROM:
EXTENSION
NO. OL 4152-84
I
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nformation an
Chief,
Management
S
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DATE
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TO: (Officer designation, room number, and
building)
DATE
OFFICER'S
COMMENTS (Number each comment to show from whom
RECEIVED
FORWARDED
INITIALS
to whom. Draw a line across column after each comment.)
1.
D/L
Attached is a report to the
2.
P-
DDA regarding OL efforts to adopt/
i
l
i
m
mp
ement certa
n Grace Co
mission
recommendations. The report was
3.
prepared, at the request of EO/OL
from input received from OL staffs
and divisions
.
4.
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ROUTING AND RECORD SHEET
SUBJECT: (Optional)
President's Private Sector Survey on Cost Control (Grace Commission)
FROM:
Daniel C. King
EXTENSION
NO. / ry
OL 4152-84
Director of Logistics
DATE 27 AUG 1984
TO: (Officer designation, room number, and
building)
DATE
OFFICER'S
COMMENTS (Number each comment to show from whom
INITIALS
to whom. Draw a line across column after each comment.)
RECEIVED
FORWARDED
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