REPORT ON ECONOMY MEASURES WITHIN CIA FOR THE PERIOD ENDING 31 MARCH 1964

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80B01676R000700070007-3
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 6
• Document Creation Date: December 19, 2016
• Document Release Date: January 24, 2007
• Sequence Number: 7
• Publication Date: May 6, 1964
• Content Type: MF

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6 May 1964
MEMORANDUM FOR: Director of Central Intelligence
1U8SECT : Report on Economy Measures Within CIA for
the Period Ending 31 March 1964
I. The following report highlights economy measures taken within
CIA during the first quarter of 1964. The management actions and
economy measures are not finite and, in some cases, cannot be measured
in real savings at this time. Theae steps, however, are commendable
and represent substantive efficiencies.
3. Agency- Wide Economy Measures.
a. Clerical recruitment levels were re-examined and
revised quarterly access
A planned total acessalo
reflects a reduction of
at an anticipated savings
computed and approved.
ericals during FY 1965
ring FY 1963,
in recruitment
and initial orientation an tr n ng casts. In addition, the imple-
mentation of a policy whereby clerical applicants are not brought
on duty until they receive full clearance wherever possible should
result in an additional anticipated savings
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b. The review of printing workload and the a lication of
ore austere and stringent criteria to Directorate printing
requirements levied upon the Printing Services Division ipecially
by the DD/ p has resulted in the elimination of a need for additional 25X1
people andl !increase in funds. 25X1
c. All Directorates have taken action to curtail travel
wherever possible and to restrict first-class travel except where
absolutely essential. A regulation to thie effect is now being
coordinated. A better indication of the amounts saved as a result
of the implementation of this policy may be available at the
conclusion of the next quarter.
4. There has been about a 5% reduction in telephone
service throughout the Agency and a consequent savings'
annually. The goal is a 25% reduction.
a. Individual Directorates were enjoined to reduce over-
time costs with a goal of 25%. Indications are that an 18% reduction
during the past quarter, as compared to the same quarter last
year, may have been achieved, reflecting a savings of about
f. All Directorates were asked to review subscriptions
to newspapers and periodicals and their procurement of books
and publications with a view towards reducing these to the absolute
minimum. They were further cautioned to assure that, in the
future, orders for non-governmental publications are subjected
to severe scrutiny prior to approval. Figures are not yet
available on savings resulting from this action.
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g. Action Memoranda were issued to allocate reduced
Directorate ceiling levels applicable to 'non-permanent' employee
categories, i.e. part-tirne, temporary and Foreign Nationals.
This action was necessary to achieve Bureau of the Budget
authorized end-year strength level by 30 prune 1964. W e 25X1
are nowl over strength in this category, although 25X1
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we have reduced' 'since the 31st of December 1963. There are
infinite problems of definition, counting and reporting of these
categories of employees which we are trying to work out.
. Each Deputy Director has been advised that all
proposed 'actions being submitted for the approval of the DDCI or
the Executive Director-Comptroller which have any financial or
manpower implications are to be reviewed first by the Director of
Budget, Program Analysis and Manpower. This is assuring
maximum attention to standards of economy and essentiality for
each proposed program or project submitted. In the long run,
substantial savings should accrue to the Agency as a result of this
procedure. 25X1
4. The Intelligence Directorate in addition to their contribution
to the reduction in printing workloads, has undertaken the following
economy measures:
b. A thorough survey of the National 1-Iliotographic
Interpretation Center manpower requirements was conducted.
This resulted in a reduction I in the total staffing
requirements submitted for that activity in the FY 1964 and 1965
budgets.
c. Additional savings resulting from such actions as
reductions in the length of contributions to the NIS, streamlining
of various aspects of cartographic support provided, s, simplification
of record-keeping systems in the Map Library, the reduction of
the quantity of material stored in the Record Center, the review
of dissemination lists and the curtailment of official travel, etc.,
have been realised. At the moment, much of the savings are
immeasurable in precise terms; however, they will contribute to
the ability of the Intelligence Directorate to absorb additional work
without commensurate increases in manpower allocations.
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c. The promulgation of reviped standards for the issuance
of executive furnishings and the approval of building alterations
with an anticipated savings a year.
d. A comprehensive examination of each guard post in
the Headquarters area resulted in the closing of some Headquarters
building entrances and the elimination of certain guard posts at an
anticipated savings a year.
e. A reduction of recruiters between
now and the end of 1965 is planned. This will, result in an annual
sevingsl I a year resulting from the cutback in over-all
Agency recruitment requirements.
7. The Scienced Technolo1y Directorate being a new organisation
has accomplished lesser savings. New position requirements exist at
the Directorate level in the Office of Research and Development, and in
the Foreign Missile and Space Analysis Center. Some absorption through
reductions in the allocated strength of the Office of Scientific Intelligence,
the Office of ELINT and the Office of Computer Services have been
possible. The growing manpower requirements of the Office of Special
Activities have been reviewed in detail and partially met by assigning
some of the requested increase of personnel. In general, the Science
and Technology area has demands for manpower and money which far
exceed their ability to absorb. New funds and personnel ceiling must be
found elsewhere in the Agency to accommodate approved expansions.
S. A report on the economy actions they had taken by 31 March was
the subject of a separate meeting with each Deputy Director. Na adverse
impact upon operations was reported resulting from economy measures.
Likewise, the Financial Policy and Budget Committee has been kept
advised of actions under way and have offered no alternatives to the present
approach. There are still more economies to be found, but they will come
slowly. On the other hand, the economy consciousness of supervisory
personnel at headquarters and in the field is responsive.
9. The Agency essentially has passed phase one of the economy
program and we are now entering into phase two with its tougher problem
of elimination of marginal activity. The Agency has very little marginal
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activity in the strict sense, and the focus becomes a matter of selection
between relative priorities weighed against Agency performance.
Decisions to stop or curtail certain programs will require constant
pressure from the Directorate level. Programs such as the CODIB is
recommending should go far to control paper flow; automated systems of
costing, now being planned and implemented by SPAM, should help
define poseiblo economy gaps end improve program planning end directions;
personnel recruitment training, and placement should be able to be
tightened; separation and disposition of marginal personnel can be forced
by coupling our policy for strict ceiling control* with performance evalua-
tions of supervisors. However, all these efforts must be coordinated
with program reviews against which the hard decisions of phase two can
be made. We anticipate strengthening the budget review process and
working with the Financial Policy and Budget Committee and the Deputy
Directors to issue those directives required to assist them in making
further economies and eliminating marginal activities and personnel.
if,. Finally, our Manpower Control staff has made a significant
contribution to the economy drive by providing a weekly analysis of the
personnel requirements of all components wishing to enter new personnel
on duty. The undersigned personally must approve the entrance on duty
of any person joining a component which is at its ceiling or over. The
Manpower Control staff is constantly reviewing the strength allotments
of all units in order to realign positions to meet new requirements.
Working with the Program Analysis staff, it is providing a real and
continua&challenge to all components to justify their usage of manpower
and the -'valitlation of their requirements.
BPAM/Revised:LBK:lh
Orig - DCI by hand
1 - DDCI
1- ER L---""
1 - ExDir
1 - BPAM
t.
(signed) Lyman B. MAW**
Lyman B. Kirkpatrick
Executive Director-Comptroller
icRev 1 1
Ezell:lied fmn, Tiu.1:mlic!
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