Document Number (FOIA) /ESDN (CREST):
CIA-RDP85B01152R001001340003-8
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Approved For Release 2008/01/09: CIA-RDP85BO1152RO01001340003-8
Approved For Release 2008/01/09: CIA-RDP85B01152RO01001340003-8
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EXATIVE OFFICE OF THE PRESIDOT
OFFICE OF MANAGEMENT AND BUDGET
December 1, 1983
MEMORANDUM TO THE HEADS OF EXECUTIVE DEPARTMENTS AND
ESTABLISHMENTS
FROM: JOSEPH R. WRIGHT, JR., DEPUTY DIRECTOR
DD/A Registry
SUBJECT: Executive Order 12352 on Federal Procurements eforms
Executive Order 12352 on Federal Procurement Reforms, March 17, 1982 tasked
each executive agency and department to initiate specific reforms to insure
effective and efficient spending of public funds. It also requires the Office of
Management and Budget through its Office of Federal Procurement Policy to work
with the agencies to provide broad policy guidance and overall leadership.
As a result, a Government-wide group, the Executive Committee on Procurement
Reform, was formed. The Executive Committee tasked its individual members to
formulate guidelines on specific procurement issues through which increased cost
effectiveness could be realized. The latest of these reform initiatives to be
approved by the Executive Committee are:
o Guidelines for establishing clear lines of contracting authority and
responsibility - To recognize contracting authority as a distinct and
separate function, authority should flow through a dearly defined path or
paths in each agency, separate from the program mission of the agency.
These guidelines provide a framework for an appropriate organizational
structure.
o Multiyear procurement guide - When used appropriately, multiyear
procurement (MYP) can lower the costs of goods and services and
decrease Government and administrative costs of placing and
administering contracts. Only three Federal agencies use this technique:
the Departments of Defense, Energy, and Transportation. This guide will
assist agency heads in establishing a MYP program to realize savings on
their own requirements.
o Customer assistance guide - This guide provides criteria for establishing
a customer assistance program to reduce administrative costs and burdens
by better communication and increased understanding between
procurement offices and organizations for which they buy.
o Price analyst staffing guide - This guide recommends, where warranted,
the establishment of an agency headquarters pricing function and the use
of price analysts at field buying offices to provide a unique expertise in
essential pricing tasks that cannot be attained - by procurement
professionals who must cover many functions. The guide also includes a
model pricing manual to assist agency personnel in pricing less complex
procurements.
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o Contract admnistration guidelines - This pamphlet provides a framework
for establishing or improving a contract administration program and
identifies 22 functions which an effective program should perform.
o Review procedures for post-award actions - This guide recommends
improvements to the review procedures for post-award contractual
actions to provide an overall cost savings in terms of better products at
reasonable prices.
o Information exchange - This recommendation is to establish a source for
identification of procurement management studies and related
information for the entire Federal contracting community. Such a
service exists within the Department of Defense (DOD), the Defense
Logistics Studies Information Exchange (DLSIE). The Office of Federal
Procurement Policy plans to accept DOD's offer to expand DLSIE's data
base to include professional information from the entire Federal
contracting community. DOD will provide implementation procedures
through the procurement Executives in the civilian agencies.
These initiatives are attached and should be reviewed carefully and applied, where
appropriate, within your respective agencies and departments. Many of the
changes proposed by the initiatives can be implemented (either wholly or partially)
by administrative action. Those changes that require regulatory amendments
before they can be implemented will be referred to the three major regulatory
agencies (DOD, GSA, and NASA).
Procurement reform is an essential element of the Administration's Reform 88
effort. Your assistance is requested in assuring full and timely implementation of
Executive Order 12352.
7 Attachments
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