OFFICE COPIERS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-05054A000100070005-6
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 16
• Document Creation Date: December 12, 2016
• Document Release Date: August 28, 2002
• Sequence Number: 5
• Content Type: REPORT

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OFFICE COPIERS
1. According to available records, concern for the uncontrolled
use of copying machines in the Agency was first voiced by the Office of
Planning, Programming and Budgeting (OPPB) in June 1968. OPPB developed
a Copy Machine Study as an adjunct to the Agency-wide Communication
Study Commissioned by the Executive Director, (DDS 68-3159). The study
called attention to the rapid growth of copiers and predicted that
unless some controls were established on the use of copiers, the cost
would exceed one million dollars by 1972. The DD/S response to the
study recognized the problem but concluded that controls over the use of
copying machines must be with the Directorates. He did, however, offer
the assistance of the Records Administration Branch (RAB) and the Office
of Logistics, OL. (DD/S 68-3659)
2. From June 1968 to September of 1972, there was little indication
that the Directorates had asserted any control over copier utilization
and expenditures increased from $500,000 to more than a million dollars
per year as predicted. This spectacular growth in copying volume and
related cost remained the concern of OL/P&PD. However, P&PD had no
regulatory power over the rental or purchase of copiers, but-rather, it
has served since 1954 only as a technical advisor on requests for printing
and reproduction equipment. Although RAB's services were offered by the
DDS, the Branch was not assigned any responsibility for copiers until
much later. Coupled with this lack of controls was the introduction of
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the Xerox model 4000 in August 1971 and the tactics used by the Xerox
salesmen to rent it to Agency components. The Xerox salesmen had lists
of Agency employees' names and phone numbers, locations of current Xerox
equipment and locations of competitive copiers. (Many of the employees
were under cover and some of the locations were classified.) They
contacted each user directly and persuaded many to upgrade their equip-
ment to the new Model 4000.
3. In November 1972, the DDS made the Executive Director-Comptroller
aware of the copier problem and recommended that the CIA Records Manage-
ment Board look into it and develop more efficient procedures for manage-
ment of copying operations. The recommendation also stated that the
management of copying operations is an appropriate function of the
Office of Logistics. The Executive Director-Comptroller approved the
recommendation with enthusiasm. (DDS 72-4205)
4. RAB's involvement with the management of copiers started in
February 1973 when the CIA Records Administration Officer, who was also
Chairman of the CIA Records Management Board, included copiers as part
of the Annual Inventory of Records Volumes and Equipment. Inventories
were prepared from the reports and for the first time since the OPPB
study in 1968 there was a centrally located record of copiers in the
Agency.
5. The next step was to review the use of each copier. Two pro-
grams were undertaken to collect usage information: (1) all Xerox meter
cards were directed to be sent to RAB so meter readings could be recorded
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prior to mailing the cards to the vendor and (2) in cooper- STAT
ation with Xerox, a week-long usage survey was conducted of each copier
(DDM&S 73-4172). The meter cards have been collected by RAB since 1973
and monthly volume statistics are available on most rented copiers.
The survey of usage started in November 1973 and was concluded in April
of 1974.
6. The DDM&S was personally concerned about the use of copiers and
asked for a preliminary report on RAB's progress through 31 December
1973. A sampling was made which showed that during the last three
months of CY 73 there was a decline of 11.3% in the total number of
copies reproduced over the previous three months. Also, an analysis was
made.of the Xerox paper consumption which showed a decline of 15.3% in
the same time frame. At the direction of the DDM&S, a campaign was
conducted to increase the utilization of the two-side copy feature on
the Xerox Model 4000. In December 1973 posters furnished by Xerox were
put on all 4000's.
7. Cost analyses were made of the various copiers and charts were
prepared comparing the per copy costs of this equipment. Meetings were
held with vendors to discuss possible alternatives to existing copiers.
The cost charts and literature on the various types of copiers were
disseminated to the Agency's Records Management Officers.
8. The use or misuse of copiers drew considerable attention during
the paper shortage crisis and the Energy Conservation Programs. Reducing
copier usage was specifically mentioned in
September
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1973 on Conservation Programs, from the standpoint of energy and paper
conservation. The centralization of reproduction machines and the
reduction of copies reproduced were specifically spelled out in corres-
pondence from the DDM&S to the Director of Logistics in February 1974.
(DDM&S 74-0709 & 74-0486)
9. One major reason for the oversell and in many instances over-
kill by Xerox, was the direct hard sell approach to Agency personnel
from the secretarial to the Division Chief level, or for that matter to
anyone who would listen. Other vendors were using the same tactics to a
lesser degree and many Agency employees complained to the Office of
Logistics. These complaints were about IBM and SCM as well as Xerox.
The sales representatives representing these firms had names and phone
numbers of Agency personnel and used every excuse to get into the
offices., The main purpose, of course, was to sell or rent additional or
bigger and better copiers. To overcome this problem, RAB prepared a
memorandum. from the DDM&S to the Deputy Directors for Intelligence,
Operations, Science and Technology and DDM&S Office Directors advising
all Agency employees to refer calls from copy machine vendors to RAB and
stating that potential users should not contact vendors direct. This
action improved the situation to some extent, however, Xerox sales
representatives continued their attempt to sell and the IBM representa-
tives who had obtained Agency Badges for other purposes, were using the
free access to sell copiers. The smaller vendors, SCM, Saxon, Savin,
Apeco, 3M, Cannon, and others conformed to the new policy and only
contacted RAB or P&PD. The situation with Xerox improved consider-
ably when the sales representatives to the Agency changed in March
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1975, and the problem with IBM has eased since the badges were taken
away from their sales representatives in April 1975.
10. In January 1974 the Chief, ISAS worked out an informal agree-
ment with the Chief, P&PD for RAB to review jointly with the Systems
Staff, P&PD all requests for copiers. During the period January-June
1974, RAB received 40 requests, 10 for new applications and 30 for
replacements. Each request was carefully reviewed by RAB and recom-
mendations were made to C/ISAS. During this same period, a review was
made of existing copiers that were obviously not being used or were
being misused. This review resulted in the relocation of seven existing
copiers and the cancellation of contracts for six Xerox copiers. The
six cancelled consisted of one Model 7000, two 2400's, one 3600 III, one
4000 and one 660.
11. A Copy Center was established by RAB, in February 1974, in
Room 2E37, Headquarters Building. The Center was to be used by
Support, OJCS, CRS, OIG, OL/RECD/HEB, OTR, Regulations Control Branch
and ISAS. It was established as a model to test the Copy Center concept
for use throughout the Agency and to evaluate equipment by RAB. Since a
full report of the Copy Center has already been prepared, it will not be
repeated here. The Center has proven successful and has been useful to
RAB in testing various copiers.
12. In May 1974, members of RAB and the Office of Finance met with
Xerox representatives to discuss testing a two-ply meter card which
would result in a summary billing system for all Xerox copiers rented by
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the Agency. This new system offered many advantages to the Agency, so
RAB with the concurrence of 0/Finance agreed to test the card for six
months starting in October 1974. The Agency did not receive all of the
benefits expected from the cards and related system during the test
period because Xerox did not make all the changes in the billing system
that were promised. Some benefits were realized. At the end of the
test period in March 1975, we agreed to continue with the two-ply card
because of its potential and because Xerox again promised to fulfill the
original agreement. Three months after the test period there were still
many problems and it was decided that RAB could not continue to devote
manpower to develop a system that appeared to have little chance of
success. Therefore, the C/ISAS asked Xerox to review the status of the
two-ply meter card system. RAB has been notified informally by Xerox
representatives that the new card will be discontinued.
13. RAB's involvement in office copying equipment management was
formalized under DCI Objective A57002 which called for managing the
utilization of copier/duplicator equipment, including rental and sup-
plies, to achieve an overall cost reduction of 8% in FY 1975, measured
in terms of FY 74 dollars. The responsibility for approval and manage-
ment of office copying equipment was formally assigned to the C/ISAS by
issued in August 1974. Since the reduction was to be measured
in terms of 1974 expenditures, RAB had to know the total cost to the
Agency for copiers and related supplies during FY 1974. To establish
this data base, the C/ISAS, in a memorandum to the Director of Logistics,
dated 7 Jude 1974, requested the 1974 cost figures for copiers and
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supplies and for a quarterly report of these same costs during FY 75.
This information was not readily available in OL so the Director of OL
sent a memorandum (OL4-3204) to each Deputy Director, each DDA Office
Head and the DCI Administrative Officer requesting the needed infor-
mation. The Plans and Program Staff/OL was assigned the responsibility
of pulling this information together into a usable report. There was
such an uproar from several components that the C/ISAS in a memorandum
dated 12 July 1974 withdrew the requirement for the quarterly report
during FY 75. This data will be gathered by other means.
14. Due to the additional copiers found during the usage survey in
late 1973 and early 1974, RAB had reason to believe'that the inventories
of copiers furnished in the 1973 annual Records Volume and Equipment
report were not complete. To obtain a complete record of all copiers
in-the Headquarters area, two actions were taken by RAB: (1) Lists
of copiers currently identified were prepared '.and forwarded to the
component Records Management Officers for verification, and (2) RAB
personnel went to the Rosslyn area, Chamber of Commerce Building,
Building
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to take an actual inventory. Additional copiers
were found and added to the inventory.
15. After RAB was reasonably sure that the information was
accurate, it was punched in tab cards. With this information on
tab cards, RAB could easily have copier inventories printed in various
formats. The 1 July 1974 inventory was printed three ways; (1) by
manufacturer, which grouped the copiers by manufacturer and model by
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serial number; (2) by component, which grouped the copiers by Director-
ate and Office or Staff; and (3) by location, which grouped the copiers
by building and room number. Copies of these inventories were furnished
to Systems Staff/P&PD/OL and to the Records Management Officers.
16. Using Fiscal Year 1975 catalogs and pricing information
obtained from the various copier vendors, three charts were prepared
comparing the costs of the copiers; one chart compared the per copy cost
of various coated-paper and plain-paper copiers used or available for
use in the Agency; one showed the monthly rental costs for plain-paper
copiers at various volume levels; and the other showed the monthly
rental costs for plain-paper copiers with sorters. These charts also
included supply costs, monthly minimums and copier speed.
17. In RAB's continuing effort to get Records Management Officers
involved in the management of copier utilization, copies of the cost
charts and vendor catalogs were given to the RMO's. Meetings were held
with RMO's and the problem with office copiers was explained with
emphasis on the fact that reproducing the copy is only the beginning of
the problem. Each copy that is made is usually read, sorted, stapled,
routed, mailed, analyzed, copied, filed, retired, declassified, and
destroyed or preserved.
18. Several actions were undertaken by RAB to make all Agency
personnel and all levels of Agency management aware of the copier
problem and of the DCI Objective to reduce costs. These actions were:
(1) a memorandum from the DDA to all Deputy Directors and Heads of
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Independent Offices dated 8 October 1974 (DDA 74-3814.) stating the
problem, recommending solutions and asking that a Copier Representative
be named in each Directorate to work with RAB; (2) five posters reflecting
the use and misuse of copiers in the Agency were displayed on bulletin
boards during the period November 1974 through January 1975; (3) articles
were printed in the Records Management Newsletter; (4) a seminar on
copiers was conducted at the Annual Records Management Conference in
October 1974, and (5) students in Records Management Training courses
were briefed on the proper use of copiers.
19. Meetings were held with the newly appointed Directorate Copier
Representatives and the copier problem was discussed and solutions
recommended. Each representative was provided with cost and utilization
information on all copiers in their areas and were asked to review the
usage and recommend changes where warranted. The changes that were
recommended by RAB were coordinated with them and they were asked to
help implement the recommendations. There have been almost no changes
recommended by the Copier Representatives nor have they been much help
in implementing RAB recommendations. Although some Records Management
Officers in the components have initiated actions,-for the most part,
they too have been unable to reduce their copier expenditures.
20. The failure to reduce copying cost was not due to a lack of
"Top Level" support. The DCI specifically mentioned the reduction of
copier expenditures in his memorandum to the Deputy Director and Heads
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of Independent Offices on "fighting inflation" dated 8 November 1974.
And two Deputy Directors, the DDO and the DDA, wrote to their Office
Heads on the same subject and both specifically mentioned reducing
copying cost. Either the word didn't get to the people responsible for
copier management or they do not take the program seriously. Many
Records Officers, Logistic Officers, and Support Officers still request
and insist on copiers without regard to cost and need.
21. As RAB got more and more involved in the billing system and
with the replacement and rearrangement of copiers, it was apparent that
there was still one item of information needed when communicating with
the Office of Finance and Office of Logistics. The needed information
was the rental number of the copier which was added to the punched
cards. A printout in rental number order was added to the January 1975
inventory, and the 0/Finance and O/Logistics/Procurement Division were
added to the list of components receiving the inventories. Xerox was
also furnished a copy of the inventory dealing with their equipment
since our records were more accurate than theirs. The1ist doesn't seem
to have helped Xerox because the same incorrect information continues
to be printed on bills, and other listings received from them.
22. RAB has tested or sponsored testing of several copiers that
seemed to have potential :use in the Agency including the SCM 412 and
6740, the 3M Model.VQC, the Saxon Model P-50 and PPC-1, the Savin Model
300, the AB Dick Model 901, the Apeco Model 200, the Xerox Model 4500,
6500 (color copier) and 3100 LDC. The Savin, the SCM 412 and 6740, the
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AB Dick 901, the Apeco Model 200, and the Xerox 4500 were all rejected
because they were too expensive or unreliable or both. The Saxon P-50
is a roll-fed coated-paper copier that has replaced 3M Thermofax copiers
in one component and is used by two others because of the continuous
roll capability. The Saxon PPC-l is a plain paper copier that has
replaced or is used in lieu of the Xerox 3100 and 4000. There are 12
Saxons now used in the Agency. The length of time in use varies from
two months to one year and over. These have saved the Agency approxi-
mately $5,000 over comparable Xerox copiers in FY 75. The 3M VQC is a
reliable coated-paper copier and is used in the RAB Copy Center, CRS and
NPIC. The Xerox Model 6500, color copier, was not cost effective as a
convenience office copier. The one tested has been transferred to the
Graphic and Visual Aids Staff/P&PD/OL and is effectively used as a
graphics tool. The Xerox Model 3100 LDC is a special purpose machine to
copy large documents up to 14 x 17 inches. There are two in use; one in
P&PD for galley proofs and one in Space Maintenance/LSD/OL for large
drawings and floor plans. In addition to the in-house testing of
copiers, RAB personnel attended showroom demonstrations of the Pitney
Bowes plain-paper copier, the Dennison copiers, the 3M color copier, the
3M Model VHR, and the Canon copiers. The Canon and Pitney Bowes copiers
will be tested in-house in FY 76 when they go on GSA Schedule.
23. RAB has implemented and is monitoring an Employee Suggestion
that calls for the retention by key operators of illegible copies made
on Xerox copiers so that credit can be. given by the Xerox Corporation.
These credits are recorded on the machine meter card by the Service
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Technicians. In the past, credit has only been given for copies run by
the Technician while he is working on the machine. The unsatisfactory
copies made as a result of minor problems not requiring the services of
a technician or those made before he arrives have been destroyed in the
past. RAB discussed the suggestion with Xerox representatives and
arrangements have been made to receive credit for all poor copies
brought to the attention of the Xerox Technicians. To implement the
suggestion and to provide an estimate of savings, RAB sent a memorandum
to each key operator describing the new procedures and will record the
savings for the first two months of the program.
24. RAB personnel have attended shows, demonstrations, seminars,
and discussed copier management with officials in other government
agencies to become as knowledgeable and as experienced as possible in
copier utilization and management. The Records Administration Officer
in charge of the copier program attended a three-day conference given by
the Institute for Graphic Communication and a two-day seminar given by
the General Services Administration. Contact was established with the
personnel in the Administrative System Division, Office of the Adjutant
General, Department of the Army who are responsible for reviewing office
copiers. RAB was put on distribution for copies of their Office Manage-
ment Information Letters and Equipment Information Letters. These
publications evaluate copiers and have been helpful to RAB. Discussions
have been held with members of the National Archives and Records Service
who are responsible for advising federal agencies on the proper use of
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copiers. We have learned through these discussions that our current
program is excellent. What we are lacking is the authority to enforce
the concepts of the program that have been developed.
25. Several charts were prepared to show machine usage and dis-
tribution in the Agency. Some charts were used for the Bi-monthly
management meetings and others were disseminated to Directorate Copier
Representatives. The representatives wanted still more detail on the
monthly usage of each machine and the total for their respective area.
To satisfy this requirement, RAB added the monthly volumes for each
rented copier to the punched cards and was able to print a listing
that reflected the volume for each rented copier for January, February,
and March 1975. The list also provided the totals for each Directorate
and the Agency. The April, May and June volumes have been added so
these 'statistics are available for the six month period January-June
1975.
26. RAB has encouraged and promoted the use of P&PD services for
printing long runs and large jobs. Printing jobs that are not big
enough to be run on a press, but are too big to be printed in an office,
can be sent to P&PD in Headquarters Building and reproduced on P&PD
copiers. This will not only save the office manhours required to run
the copiers, but will save the Agency the difference between an average
of $.03 per copy on office copiers and $.006 per copy in P&PD. This
effort had results and the Xerox Model 3100 in P&PD was exchanged for a
Model 36001. The 36001 has made 954,892 copies since it was installed
in August 1974.
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27. The Copy Center concept has been very difficult to sell to
Agency managers. RAB has recommended Copy Centers for the DCI area on
the seventh floor, for DDS&T in
Building, for the Office of
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for the
Office of Training in Chamber of Commerce Building, for the Office of
Technical Services and NE Division/DDO. The results of these recom-
mendations were: (1) the offices on the seventh floor would not give up
their individual copiers and space was not available fora Copy Center,
(2) the Center in
Building was installed as planned, however,
another Model 3100 not recommended by RAB was rented for use in
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Building, (3) the Office of Personnel Center was accepted, however, an
additional Model 3100 not recommended by RAB was requested for use on
the fifth floor by OP, (4) the two Centers for OTR in C of C are still
pending, (5) CRS would not go along with the original recommendation,
but is considering other Copy Center applications, (6) the Center for
OTS in South Building is operational, (7) NE Division refused to give up
the Model 4000 and use their Model 36001 for all NE copying and (8) of
the three Centers planned for NPIC in Building 0 one is operational,
one will be operational in August 1975 and the others will be operational
when NPIC's new space on the sixth floor of Building 0 is completed.
NPIC is going to put in effect another suggestion made by RAB and that
is to man the Copy Center with a handicapped employee. The first employee
for this purpose is now being cleared by Security.
28. In September 1974 Xerox proposed that the Agency purchase the
copiers that were running a high volume. The Office of Communications
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(OC) was asked to evaluate the proposal because of the high volume
copiers in the Signal Center and the Cable Secretariat. OC rejected the
proposal because of a concern about service after purchase and the fear
that technological advances would make current copiers obsolete. After
conversations with P&PD, RAB notified Xerox that the Agency would continue
its rental policy. Early this year Xerox representatives again started
talking about selling Xerox copiers to the Agency. RAB recommended that
they prepare a formal proposal to present to Agency top management. On
5 June 1975 the Associate DDA, the Director of Logistics, the Chief,
ISAS and an RAB Staff member went to the Xerox Training Headquarters in
Leesburg, Virginia for a three-hour presentation on purchase versus
rental of Xerox copiers. After considerable study and discussions between
OL, ISAS and O/DDA personnel, the purchase proposal was rejected. The
main reason was the fear of OL that Xerox or another company would come
out with new bigger and/or better copiers that would make the purchased
,Xerox copiers obsolete.
29. During FY 1975, RAB reviewed 35 requests for copiers, 24 for
replacements and eleven for new applications. Three of the new appli-
cations were for the FOIA effort and two were to support the Presidential
Commission and Congressional investigation task forces. Recommendations
made by RAB to cancel or modify these 35 requests had a possible annual
cost avoidance of $27,434. Five of these recommendations were accepted
for an actual cost avoidance of $15,782. Since these actions occurred
at various times during FY 75 the actual FY 75 savings is only $4,610.
There are four recommendations still pending.
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30. During FY 1975, RAB reviewed the usage of 56 existing copiers.
Recommendations were made to cancel or replace 48 of these copiers for a
possible annual savings of $83,659. Twenty-three of these recommendations
were accepted for an actual annual savings of $48,732. Since these
actions occurred at different times during the year, the actual FY 1975
savings were only $23,522.
31. Next to establishing a data base and program for managing the
utilization of copiers/duplicators in the Agency, RAB's greatest accom-
plishment during FY 75 was in holding the line on copier rentals. In the
past, when a new Xerox model entered the market, Agency components
immediately rented several, often without seriously evaluating the need.
For example, when RAB started its review program there were twelve Model
7000's (the most expensive, Xerox duplicator at $675 per month minimum).
Five have already been replaced with less expensive copiers and one has
been recommended for replacement by a cheaper machine. Another example
is the Model 4000 that was introduced in August 1971. In the first two
years, there were 40 Model 4000's brought into the Agency. In July
1974, before the RAB review there were 53 Model 4000's and now there are
50. Since RAB has been involved, Xerox introduced the Models 3100 LDC,
4500 and 6500. There are only two 3100 LDC's, no 4500's and only one
6500 rented by the Agency today.
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