LETTER TO ROBERT M. GATES FROM TERENCE C. GOLDEN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP89G00643R000900170021-7
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 3
• Document Creation Date: December 23, 2016
• Document Release Date: December 20, 2011
• Sequence Number: 21
• Publication Date: February 17, 1987
• Content Type: LETTER

Declassified and Approved For Release 2011/12/20: CIA-RDP89GO0643R000900170021-7
ROUTING AND TRANSMITTAL SLIP
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building, Agency/pm)
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25 Feb 87
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Declassified and Approved For Release 2011/12/20: CIA-RDP89GO0643R000900170021-7
 Declassified and Approved For Release 2011/12/20: CIA-RDP89GO0643R000900170021-7
EXECUTIVE SECRETARIAT
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Declassified and Approved For Release 2011/12/20: CIA-RDP89GO0643R000900170021-7
 Declassified and Approved For Release 2011/12/20: CIA-RDP89GO0643R000900170021-7
M&N
erai services Aaministrauion
Washington, DC 20405
February 17, 1987
The Office of Management and Budget has released for comment
a draft bill authorizing the funding of our Federal Supply
Service (FSS) operations through a full-cost recovery mechanism.
We have supported this proposed legislation for two reasons.
First, we see it as a means by which our procurement and supply
services can achieve stability and consistency by freeing them
from dependency on an often fluctuating appropriated funding
approach. The influences of budgetary changes from year-to-year
have affected the quality and level of service which FSS has
provided. Criticism of FSS' reliability as a supply source has
prompted us to formulate this full-cost recovery solution.
Secondly, we see this as an opportunity to increase
competition and economy in Governmentwide logistics operations.
Incentive to keep our pricing structure competitive is found in
the legislative provision which conveys that FSS will be a
preferred but not a mandatory source. If an agency finds it can
serve its own requirement through a commercial source at less
total cost to the Government, it is permitted to do so. The
modest increase in our pricing structure (e.g., averaging
3 percent in our direct delivery program and 9 percent via our
stock program) will not undermine the highly competitive nature
of our supply sources. Nevertheless, we will continue to find in
this legislation, a self-perpetuating incentive to strive for
even greater efficiencies in FSS operations and deeper discounts
in our contract prices.
The advantage to the Government as a whole, and to each
agency we serve, is found in these two objectives. I, therefore,
encourage your support of the legislation and welcome
constructive comment on improvements which might aid in its
implementation in the 1988 budget cycle.
Sincerely,
PIC IQAL~
The Honorable
Robert M. Gates
Acting Director
Central Intelligence Agency
Washington, DC 20505
Declassified and Approved For Release 2011/12/20: CIA-RDP89GO0643R000900170021-7