CONTRACT PERSONNEL DIVISION ANNUAL REPORT FOR THE PERIOD 1 JULY 1957 TO 30 JUNE 1958

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-01826R000100100027-5
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 9
• Document Creation Date: December 22, 2016
• Document Release Date: September 30, 2002
• Sequence Number: 27
• Publication Date: June 30, 1958
• Content Type: REPORT

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D. Military Details.
During FY1958, Letters of Authorization for
Military Details were prepared and executed, and
existing LOA's required amendments.
E. Other Agreements.
During FY1958, CPD prepared
and 10 amendments. In addition,
were prepared and executed in those situations
where the standard document normally executed in Central
Processing Branch was inappropriate.
F. Allowances.
individuals are drawing equalization allowances. During
FY1958, 89 new equalization allowances were authorized.
For the period 1 July 1957 through 31 March 1958,
equalization allowances were revised. During F ,
separation allowances were authorized and, 2 posts
not classified by the State Department were classified
by Contract Personnel Division for general allowance
purposes. In addition, CPD classified 6 posts for educa-
tion allowance purposes only (basically for the purpose of
establishing school facilities on an away-from-post basis).
As of 30 June 1958, CPD records indicate that
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II. Accomplishments and Developments.
A. Contract Personnel
(1) FY1958 marked the first full year during which the
contracting program, both in Headquarters and the field, was
administered under the provisions of I land
accompanying handbooks. As was expected, the Division spent
considerable time in discussing with both Field and Headquarters'
operational and support officers many of the provisions contained
in those publications. Numerous language interpretations were
requested and the policies inherent in the more substantive por-
tions of the regulations (especially the new Career Agent con-
cept) were explained. In general, favorable comments were
received by CPD from the operating components working with
those regulations. Recent field returnees indicated that the
overseas stations now have a much clearer picture of the reasons,
need for, and policies behind the contracting process. Several
changes in the Regulations have been proposed and are either
under study or have been initiated.
(2) A paper on the slotting of Contract Employees and
their relationship to the over-all Agency ceiling was prepared
and is in the coordination stage. As originally prepared, the
paper recommends that domestic contract employees not paid
from specific Agency projects who are performing duties simi-
lar to those performed by Staff Employees, be slotted and
counted against Agency ceiling.
(3) Certain Agency components, notably the Office of
Training and the Office of Scientific Intelligence, have begun to
utilize vouchered rather than unvouchered funds for certain types
of their contract individuals. This change in funding is based
upon the Comptroller's informal request that as many activities
as possible be paid from vouchered funds.
(4) The
program initiated by FDD/OO late in FY1957 has been fully acti-
vated and is approaching substantial proportions. During FY1958,
25X9A2 I ndependent contractor type agreements were drawn with
individuals performing translation, research, editing and various
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clerical activities. In addition, "of those contracts were
amended to provide for changes in amounts and types of pay-
ments and the performance of activities different from those for
which the individual was initially contracted. Also during this
period the Office of Personnel and the Office of General Counsel
agreed that thel tructure could utilize Staff Employees
of the Agency under certain restrictive conditions.
B. Staff Agents.
The final draft of the proposed Staff Agent Regulation,
has been returned to the Regulation Control Staff.
As can be seen from the Statistical section, the number of indi-
viduals utilizing the Staff Agent processing device continues to
decline.
C. Staff Employee (Special)
One of the basic reasons for the decrease in the use of the
Staff Agent procedure has been the initiation of the Staff
Employee (Special) category. This category was informally put
into use during FY 1958 after discussions with various Agency
utilizing components. It is not intended that a regulation covering
this procedure be published at the present time. The Staff
Employee (Special) category is being used when an individual who
is being processed for an overseas assignment does not need the
complete covert processing inherent in the Staff Agent device,
but does need more internal protection than is afforded a Staff
Employee under official cover.
D. Military Details.
For the second successive year the number of Letters of
Authorization for Military Details has decreased. Based upon
this decrease and the fact that those elements in the Agency con-
cerned with the administrative handling of Military Details have
now acquired sufficient experience to handle their processing on
a more routine and standardized basis, a regulation has been
drafted which provides for the elimination of individual LOA' s in
other than special covert situations.
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E. Other Agreements.
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(1) Subsequent to discussions between the Office of Personnel
and the Office of the Comptroller, Finance Division has under-
taken the routine administration of equalization allowances for
Staff Employees, Staff Agents, and Contract Employees, effective
1 April 1958. Changes in the equalization allowance based upon
promotion, PSI' s, additional dependents, etc., can now be
handled without a memorandum or contract amendment from this
Division. The basic responsibility to authorize equalization
allowances is still retained in Contract Personnel Division, as is
the liaison function between CIA and the State Department con-
cerning allowances in general. The responsibility for adjustments
in equalization increments for Contract Agents must remain in
Contract Personnel Division. In these situations, varied indivi-
dual considerations have determined the amount of the increment,
and subsequent changes are not made in conformance with
standardized allowance procedures.
(Z) A study has been initiated to determine the possibility for
revising the basis on which equalization allowances are presently
granted in an attempt to lessen the disparity existing in some over-
seas areas between those individuals under official and non-offi-
cial cover.
(3) The allowance branch of CPD has spent considerable
time during FY1958 in the field of education allowances. Although
this is a standardized allowance, it is readily apparent that CIA
due to its unusual functions, has educational problems much
different from those normally encountered by other Governmental
Agencies.
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(4) An omnibus allowance regulation covering special,
as well as standardized allowances, has been rewritten.
(5) AONotice is being coordinated regarding the
application of the post differential to female employees who
marry while in a differential area.
(6) The draft of a brochure on all CIA allowances,
including a question and answer section for each allowance,
has been prepared. It is presently planned that the brochure
in final form will receive Agency-wide distribution, possibly
through a special issue of the Support Bulletin.
G. General Comment.
The outside briefing function of Contract Personnel
Division continues to increase sharply as the utilizing com-
ponents become more aware of its value. During FY1958,
approximately 85 outside briefings with contract individuals
in all categories were undertaken by CPD upon request. It
is felt that especially in the field of initial briefings, this
service is of substantial value in assisting the individual
under contract to understand his basic relationship to CIA. and
how he will be handled administratively during his overseas
assignment.
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CONTRACT PERSONNEL DIVISION
ANNUAL REPORT
For the Period 1 July 1957 to 30 June 1958
SECTION 2. Objectives for FY1959
(1) A continuing primary objective for FY1959 involves the
publication of certain Regulations relating to the functions of this
Division. High on this list is the Staff Agent Regulation. Other
important regulatory issuances include the omnibus allowance regu-
lation, and the Military Detail regulation concerning Letters of
Authorization.
(2) This Division hopes to expand the use of the Staff Employee
(Special) category during FY1959. More discussions with utilizing
components concerning this procedure will be necessary. In this
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(3) During FY1959 the policy concerning the substitution of Con-
tract Employees for enlisted Military Details will be initiated.
Recruitment of Contract Employees for this program has already
begun and should reach substantial proportions during the next fiscal
year.
(4) The immediate problem facing this Division in early FY1959
is the amendment of several hundred employee-type agreements to
provide for the recent Legislative pay increase. Discussions with
many Agency components indicate that most of the Contract Employees
performing duties similar to Staff Employees will receive, on a pro-
spective basis, an amount equal to the Legislative pay increase
recently granted appointed employees.
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(5) A major objective for FYI 959 in the allowance field will be
the completion of a study concerned with possible changes in the method
and computation of equalization allowances. The present planning calls
for completion by GPD on or before 1 September 1958.
(6) It is expected that th program handled by FDD/OO
will continue to expand. The possibility of a companion overseas
program has been initially discussed between members of FDD/OO and
this Division.
. (7) Although the projection of basic statistics for FY1959 is most
difficult, it is reasonable to assume that the over-all work load of this
Division will increase rather than decrease. A reduction in the Staff
Agent category will be offset by GPD participation in the Staff Employee
(Special) processing. Further, as the use of bona fide non-official cover
increases, the utilization of the Staff Agent processing device will be
more frequently resorted to. It is anticipated that the number of contract
individuals performing staff type duties will continue to increase as a
result of the over-all Agency ceiling on staff personnel. It is also
becoming apparent that many of the functions of this Agency which at
one time were handled by appointed personnel are being contracted out
to individuals with specialized experience and training. An example of
this is the Oprogram already referred to above. Scientific,
economic, political and research projects are more often being handled
by individuals under contract or through agreements with firms whose
capabilities have been established in those areas. In addition, as the
covert operations of the Agency continue to utilize an increasing amount
of non-official cover, a variety of covert support programs in which
CPD plays a roll have been or are being initiated. Cover Division, for
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CONTRACT PERSONNEL DIVISION
ANNUAL REPORT
For the Period 1 July 1957 to 30 June 1958
SECTION 3. Program Outlook for FY1960
Although basic statistics cannot be estimated, Contract Personnel
Division anticipates an increase in its varied activities through FY1960.
Based upon this planned increase in relation to the size of the Division,
CPD will work toward improvement of existing procedures and practices
in order to allow itself ample time to fully participate in the initiation
and implementation of new programs and activities supporting Agency
operations.
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