PROPOSED REORGANIZATION OF THE OFFICE OF LOGISTICS ACQUISITION SYSTEM

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP87-01146R000100020003-8
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 8
• Document Creation Date: December 16, 2016
• Document Release Date: July 22, 2005
• Sequence Number: 3
• Publication Date: October 20, 1981
• Content Type: PAPER

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PROPOSED REORGANIZATION OF THE
OFFICE OF LOGISTICS
ACQUISITION SYSTEM
20 OCTOBER 1981
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 87-01100010002
Purpose: This paper proposes to Office of Logistics (OL)
management an alternate functional realignment of organizational
structure within OL. This proposal addresses the implementation
of the Logistics Integrated Management System (LIMS) and con-
siders the minimizing of impact and trauma on the existing
organization. This paper presents concepts upon which to elicit
discussion and does not attempt to prescribe details. This plan
will be further refined as necessary, upon OL senior management
consideration and further direction.
Scope: LIMS will, upon initial implementation, be predominately
a materiel and services acquisition system. Therefore, the
elements of this paper are concerned only with those existing
organizational elements relating to these processes. Also, the
basic premise of LIMS and this proposal is that they must
increase OL responsiveness to Agency customers, in requisitioning
material and services. So as to maximize responsiveness and
limit impact upon existing OL components considered in this
paper, only those elements that comprise the existing Supply
Division (SD), Procurement Division (PD),
Objectives:
? Maximize OL responsiveness while minimizing impact upon the
existing ogranization.
? Provide cross-fertilization between Logistics procurement
and supply disciplines.
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 CONFIDE N TOA L
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Separate and consolidate acquisition activities associated
with small purchases and low risk (less than $10,000) from
large acquisitions and high risk (greater than $10,000)
that usually require highly trained technical procurement
careerists.
Provide a managerial balance within the acquisition activi-
ties to maximize flexibility in shifting resources tharcan
accommodate changing work loads.
May be phased in prior to LIMS implementation and thereby
minimize disruptions.
Increase emphasis on centralizing the processing of high
volume, low dollar acquisitions.
Distinguish between the types and levels of management
required for systems acquisitions, i.e., contracting acti-
vities versus procurement processes.
Assumptions:
Functional subdivisions of the existing organization can
be consolidated and rearranged as necessary to support
improved responsiveness.
The future environment in which the Agency logistics system
will operate is likely to place increasing emphasis upon
small direct purchases and depot services; inventory
actions and large systems acquisitions will remain
relatively stable.
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Small purchase acquisitions do not require the same level
of procurement expertise as do larger contracts. Supply
oriented careerist can rotate to small purchase functional
elements and, conversely, small purchase staffing can
rotate throughout remaining supply functions within the
organization.
The small purchase function of the new organization will
continue to provide entry level training to those aspiring
to careers in the procurement field.
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 "Y" Division (New)
Rational:
P87-01 1000100020003
Approximately 90 percent of all annual materiel acquisitions
involving procurement actions, require experditures of funds of
less than $10,000 per action. Dollar value of these actions
constitute approximately 12 percent of the total dollars
expended. In other words, 12 percent
dollars spent by the Agency go to satisfy approximately 90 per-
cent of all direct acquisitions based upon statistics from the
D/L Briefing Book. To consolidate these activities, it is pro-
posed that two existing branches of the Supply Division (IDSB and
SPB) and two branches of the Procurement Division (GPB and
be withdrawn from each Division to form the nucleus of a new
division within OL (see attached diagram, Division Y). The new
Division would be dedicated to handling purchase actions, which,
for the most part are low risk, high volume, low dollar value
actions. It is recognized that acquisitions made via Government
sources often exceed the $10,000 threshold, but it is also
recognized that these actions are low risk and constitute a bro-
kering action between the Agency and an actual procurement
authority.
The reduction of
Procurement Division can be offset by the transferring of
Headquarters supervision of
to the Chief,
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reduction in authorized positions
figured Procurement Division. However, in consideration of the
complex tasks within sophisticated contracting, this reduction in
ceiling should not jeopardize the grade structure of that com-
ponent.
Likewise, it can be anticipated that the shifting of II
from the Supply Division will not
significantly influence that Division's grade structure, since it
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authorized positions.
It can be reasonably assured that the creation of a new
division that centralizes small purchase activities throughout
the office will enhance organizational grade structures. More
importantly, however, it postures the office to better manage
activities associated with materiel distribution, inventory, and
acquisition functions.
As is known, the LIMS system is primarily dedicated to auto-
mating and expediting acquisition processes. Its keystone module
is the procurement function which, again, will serve high volume,
low dollar value acquisition actions. LIMS will provide rapid
accessment of workload and response requirements, permitting
managers to take action as necessary. In addition, it will
resolve, simplify, and speed those OF actions associated with
high volume activities. Therefore, it is perceived that the
eventual imposition of LIMS functions upon the OL organization
will be more readily and easily undertaken within the
reorganization alternative described herein.
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