LETTER TO HONORABLE HUBERT H. HUMPHREY FROM W. F. RABORN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80B01676R000400150035-6
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 13
• Document Creation Date: December 14, 2016
• Document Release Date: December 18, 2002
• Sequence Number: 35
• Publication Date: July 31, 1965
• Content Type: LETTER

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Honorable Hubert H. Humphrey
President of the Senate
Washington. D. C. 20510
3 1 JUL 1965
This letter transmits for the consideration of the Congress
a proposed amendment to the National Security Act of 1947, as amended
(50 U. S. C. 405). The proposed amendment repeals the $50 per day
compensation ceiling on consultant services imposed by Section 303
of that Act and authorises the payment of consultant compensation which
is competitive with that paid by other Executive agencies.
At the time of its passage, the new offices and agencies created
by the National Security Act of 1947 did not have organic legislation to
rely upon for the appointment of advisory committees and the employment
of part-time advisory personnel. Section 303 was incorporated in the Act
to fill this void until such legislation had been enacted.
Organic legislation for the Central Intelligence Agency was enacted
in 1949 (50 U.S.C. 403(a) ). The CIA Act of 1'!49 effectively provided the
Director of Central Intelligence with all necessary appointment and com-
pensation authority with respect to his office and the Central Intelligence
Agency. Nevertheless, the earlier specific language of the National
Security Act of 1"47 on consultant compensation effectively limits the
Director's authority to establish ce pensation for consultant services.
As a result, while the Director may not pay more than $50 per day, other
Executive agencies may pay up to $93.04 per day. and many others. Including
the Atomic Energy Commission, the Federal Aviation Agency, and the
National Aeronautics and Space Administration. may pay as high as $100
per day or more. The disparity between what the Director of Central
Intelligence can pay and the reasonable market value of outstanding con-
sultants who are in high demand is clearly a handicap to this Agency.
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With the repeal of the compensation ceiling in Section 303, the Director
could pay consultants fees under the CIA Act of 1949, as arn,eaded, which
are competitive with those paid by other Executive agencies.
We consider enactment of the proposed amendment ssssential to
the effective performance of our mission and would appreciate early and
favorable consideration. The Bureau of the Budget has advised that there
is no objection to the presentation of the proposed aaneads ant to the Congress
the standpoint of the Administration's program.
Sincerely,
'(signedl W. F. Rabornn
W. F. Raborn
Director
Enclosures 2
Distribution:
Orig & 1 - Addressee
1 -DCI
1 - DDCI
1 -ER
1 - Leg. Counsel subject
I - Leg. Counsel chrono
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3 1 JUL 1965
'tutbowity W" zagpot;
ICYIN qty Act
y
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Si reiv,
'(signed) W. F. Farorn
W.
Distribution:
Orig and 1 - Addressee
1 - DCI
1 - DDCI
1-ER
1 - OGC/LC Subject
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39th CONGRESS
I at SIGN
To araend the National. Sec irit Act to repeal the provisions
h the con pensation of consultants and for other attrposes.
1. it enacted bthea Senate and the House of Representatives
United Mates of America in Congress assembled, That Section 303
National Security Act of 1947. as amended (50 U. S. C. 405), is
further amended by striking out the last sentence of subsection (a) and
inserting in place thereof the following new sentence: "Other r'iier,bere
of such comrriittees and other part-tire advisory personnel so ex plot
serve without compensation or n ay receive compensation at rates
authorized in an appropriation or other act. "
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JUSTIFICATION AND EXPLANATION
to time, the Central Intelligence Agency has found it
necessary to appoint advisory cor inittees and em=ploy part-time advisory
personnel to obtain the vital knowledge and experience of outstanding
experts in a wide range of scientific, economic, and associated disci-
plines. While the contribution of consultants is essential to this Agency's
functions, the competition with Government agencies and indb.istry in a
limited talent market is keen. At present, the restriction contained in
Section 303(a) of the National Security Act of 1447. as amended. which
limits the compensation of such consultants to $50 per day prevents the
g these consultants at rates competitive with those of
Federal agencies or of private industry. This disparity has harr: -
pored the
efforts to obtain readily the services of the highly
qualified advisors which it needs and has forced the Agency to rely an
their patriotism and dedication to serve the Agency at a financial sac-
rifice. Consequently, there is an urgent need for removal of the present
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$50 liwitation to Permit the Agency to compensate its consultants at
rates nsoree comparable to those payable by any other Federal agency.
Extent of Disparity
By statute, the Agency is limited to paying not n ore than $50 per
day for cons
ervices. In contrast, the Administrative Expense
Act, which has general application in the Executive branch, authorizes
consultant fees up to $93.04 per day, the n .aairx+uen rate for a CS-13.
Moreover, a number of Federal agencies. including the Atomic Energy
ommission, the Federal Aviation Agency, and the National Aeronautics
and Space Administration. have been granted legislative authority to pay
$100 per day or acre,.
Section 303(a) of the National Security Act of 1947, as amended
(50 U. S. C. A. 403), was prirr arily a grant of authority to permit the hiring
of advisory personnel by the new offices and agencies created by that Act.
In so doing, it ;sat a $35 per day limit on compensation. At that time, the
daily naxintum. compensation payable under the Classification Act was a
little wworee than $38 per day. When the waxirnum compensation under the
ton Act was raised to a little less than $54 per day in 1949, the
in the National Security &ct was raised to the present
$50 per day. Since 1949, the maxim urn compensation payable under the
Classification Act has steadily risen to a little rroree than $94 per day, at
present, without any corresponding increase in Section 303(a).
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below I. a chronological comparison between:
(a) the consultant pay lie itations in Section 303(a),
(b) the Classification Act rate most comparable to those
not forth in Section 303(a) its 1947 and an-ended in 1949, and
consultant cotrpeneatton payable by other Federal
agencies under 5 U. S.G. 55(a), P. L. 79-680
Year Section 303(a)
1958
1960
196+
1964 (Jan.)
1964 (July)
$35 N. A. $40
$50 $54 $42
$58 $57 $45
$58 $62 $49
$50 $67 $54
$50 $71 $58
$50 $77 $69
$50 $77 $74
$30 $44 $83
Note: Computation of GS daily rates acre to the nearest dollar and
were computed by dividing per annum compensation by the number of
working days in a calendar year (260).
Effect of $50 Limitation in CIA's Recruitment of Consultants
The Agency must be in a position to be able to command the ser-
vices of the country's best brains. The Agency is in competition in a
arket, not only with other Government agencies ao-
and to pay consultant fees of $100 per day, but with industry whore the
only dollar limitation is the amount required to obtain the services net
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In view of the $50 per day statutory liniitation, the Agency has had
to rely on the patriotism of its consultants to accept fees which are much
lower than the compensation they receive in their regular eniploynsent or
the consultant feces which they command elsewhere. However, we do not
feel that we should be forced to rely upon their patriotism and dedication
alone to obtain their urgently needed services.
Wood for Relief from the Limitation an Consultant Fees
between what the Agency can pay and the reasonable
market value of the services of those outstanding professionals is clearly
handicap to the Agency in obtaining the critically needed services of
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 -
..~.. . itin Ii~gia'::.3
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UM FOR: Deputy Director of Central Intelligence
Agency Legislation - Consultant Pay
a r1.ndum for DDCI, dated 9 Sze 1965
Subject: Agency Legislation
3, N E:
Deputy Director of Central. Intelligence. Such recomme ,tl is
nod is paragraph 4.
L This memorandum contains a recorrurmendatien for the sp,
Z. The referenced nemorandun: indicated that certaie of the
Agency's statutory authorities are obsolete and unduly restrictive and
singled out the $50 per day limitation on consultant pay as being one of
them. The Deputy Director of Central Intelligence approved the entering
Into of reril,xnl ry discussion on se+ ing)egislative relief.
3. The necessary preliminary work has now been cotipletod, and
e prepared to submit to the Bureau of the Budget our formal proposal.
to repeal the existing $50 compensation ceiling and substitute language
which would permit the Director of Central Intelligence to pay c eeuttants
aims competitive with those paid by other Federal agencies.
4. It is recommended that the Deputy Director sign the attached
to the Speaker of the House and the President of the Senate.
LAWRENCE R. HOUSTON
General Counsel
Attachments
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STAT
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STAT
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MEMORANDUM FOR: DEPUTY DIRECTOR
DIRECTOR
This is a legislative proposal to repeal the
$50 per day compensation ceiling for consultants
which is imposed upon the Agency by the National
Security Act of 1947. We simply are no longer
competitive with other Federal agencies in the
area of consultant pay. We have checked our
position out with affected agencies and find no
opposition to our proposal. Before the proposal
if formally submitted to the Congress, I believe
we should touch on r
Subcommittees.
LAWRENCE R. HOUSTON
General
FORM NO. 101 REPLACES FORM 10.101
1 AUG 54 WHICH MAY BE USED.
STAT
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