INSPECTOR GENERAL'S SURVEY OF THE OFFICE OF LOGISTICS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP85-00988R000500070001-0
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 33
• Document Creation Date: December 22, 2016
• Document Release Date: September 29, 2009
• Sequence Number: 1
• Publication Date: August 1, 1978
• Content Type: REPORT

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INSPECTOR GENERAL'S SURVEY
OF THE
OFFICE OF LOGISTICS
AUGJST 1978
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Introduction
. The Office of Logistics (0,), a major component of the
Directorate of Administration, exists to serve and support all
Agency elements worldwide. This survey, carried out by a
three-man team from the Office of the Inspector General, was
begun in January 1978; the last previous full inspection survey
of OL was completed in 1969.
Our scope is the entire Office of Logistics with
employees and a yearly operating budget of
In the course of the survey several hundred employees were
interviewed privately, ranging from about 50 percent in some
sub-components to 100 percent in others. Excellent cooperation
was received at all levels as OL employees frankly discussed
their work, their goals, their accomplishments, and their prob-
lems. We believe this report fairly describes the situation
prevailing in OL in the first five months of 1978.
This report is organized by components. After briefly
discussing the Office of the Director of Logistics we move on
to three branches which come under the administrative super-
vision of the Executive Officer. The report then covers the
four OL staffs and, finally, the five OL Divisions.
C N r ] E NTIA1
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Our inspection team was acutely aware as it undertook this
inspection that through the years:OL has built, by service, a
well-deserved reputation as one of the finest support mechanisms
in the world. Repeatedly, as we moved through OL components, we
heard such maxims as you call and we'll haul" and "give the
customer what he wants, fast." We found that most OL personnel
are intensely service-oriented and take pride in doing their
work well.
We concentrated in this survey on the Office of Logistics
per se and did not attempt to get a definitive reading on OL
from its many Agency customers -- the people and components it
supports.
inspection
Operations
We did, however, take advantage of a concurrent
of the Latin America Division of the Directorate of
to ask all LA field installations about their views
of the support they ask for and receive from OL. We made similar
inquiries in Headquarters components of all DO area divisions.
Our findings were, with some expected exceptions, that by and
large support from OL is excellent. As a routine measure the
Office of the Inspector General plans, in future component
inspections, to continue specific inquiries about how well the
support needs of such components are being met.
We also looked carefully at contracting procedures and at
the Industrial Security Program as it applies to the Office of
Logistics.
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Our findings lead us to conclude that, overall, the Office
of Logistics is a highly competent, well-run service organiza-
tion. Like any organization of its. size, OL is beset with
problems as the following pages will reveal. The Office of
Logistics management team was aware of many of these problems
and working to solve them as the inspection progressed -- and
we found OL's leadership quite receptive to the findings and
preliminary recommendations relayed to them by the inspection
team.
C ONic ID E N T 'a L
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Office of the Director of Logistics
The Office of Logistics is headed by a dynamic, experienced,
and well synchronized management team. The Director of Logistics
(D/L) is a GS-18 with extensive experience in the contracting
field. His deputy and the Executive Officer, both GS-17s, com-
prise the rest of the front office team which is commonly referred
to by OL employees as the troika." This strong, competent trio
is generally considered a good team to work for.
In addition to the three-man management team now running OL,
the Deputy Director for Administration and his deputy, each of
whom has served in the past as Director of Logistics, are seen as
active alumni who continue to have strong interest in and support
for the office.
In briefings by OL managers, and in frequent meetings with
them as the survey progressed, our inspectors were impressed with
the extent of management awareness of what is going on in their
bailiwick. We were also pleased with their positive attitude
toward the inspection process and their unfailing courtesy and
candor in dealing with the inspection team.
One observation about the OL management team, which surfaced
often enough to merit inclusion herein, is that to the rank and
file, OL leadership seems somewhat remote and isolated. A number
of OL employees said they had never seen the D/L; others remarked
that OL leaders, except for the Executive Officer, seldom stray
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from their own offices. Some in making such observations were
quick to point out that the front office team was probably too
bogged down with work more important than circulating among the
"troops." We brought these employee views -- which were more
in the nature of observations rather than complaints -- to the
attention of the management team and suggested that they try to
find time to do a bit more circulating -- to give their workers
more attention and recognition. We believe such action would
boost morale.
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Budget and Fiscal Branch
?
This branch, which functions under the
Executive Officer, handles budget and fiscal matters for the
Office of Logistics (OL). In most respects its duties and re-
sponsibilities are typical of those of comparable staffs in other
Agency components. Money levels are, however, much higher than
normal. Altogether the staff processes over
the money the Agency uses to buy what it needs. The OL budget
accounts for an additional
spent as Standard Level User Charges (SLUG) -- money paid to the
General Services Administration (GSA).
The workload in the branch builds up heavily at the end of
the fiscal year and the staff works at a hectic pace from mid-
August to mid-November. Preparations for submission of the OL
budget impose a heavy workload in February and March. In be-
tween these peak load periods the staff devotes any slack time
to clearing up old obligations, some of which date back to 1965.
Recently, efforts to cut down this backlog resulted in clearing
obligations for the period 1961-1965. Delayed payment is often
unavoidable as military billings, for example, sometimes are re--
ceived up to four years late.
Staffing levels and personnel assigned are sufficient to
the tasks of this office. Our inspectors noted with approval
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? that the deputy chief of the staff is especially determined to
clear out old paper work clogging the files, in the face of some
"pack rat" resistence. People in the branch are being crossed
trained -?- a healthy development.
Some concern was expressed by persons in the branch that
overtime costs in OL are excessive (see below) and_pay-
ments to GSA are often made for services GSA does not perform.
As a result, in this latter case, OL finds itself obliged to pay
Agency employees to perform these services, with such payments
often made at overtime rates (see attachment on GSA).
Personnel of this staff are quick to spot apparent abuses
in expenditure of funds but feel largely impotent to do anything
about some perceived wasteful practices. We applauded their
cost-consciousness and suggested that they continue to speak out
whenever they feel government funds are being unwisely spent.
We did not find'any evidence of illegalities in connection with
expenditures monitored by this staff.
As noted, our inspection team encountered in this staff some
concern about overtime payments in OL which are expected to ex-
cee in the present fiscal year unless some curtail-
ment is effected. Similar concern regarding overtime expenditures
surfaced elsewhere as the inspection progressed, but we were
pleased to note that OL management was already well aware of the
problem and had arranged for a special study of overtime to be
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made by the Plans and Program Staff. Such up-to-date tackling of
problems is typical of the OL management team. We support the
recommendations set forth in the overtime study while recognizing
that a high level of overtime, particularly in the Printing and
Photography, Logistics Services, and Supply Divisions, probably
cannot be avoided.
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Records and Services Branch
The Records and Services Branch, which functions under the
Executive Officer and is known generally as "Registry", consists
of employees. It is headed by
an employee who has worked for the Agency since 1947. This
branch operates as a normal registry in addition to handling
Freedom of Information Act and Privacy Act requests. Branch
personnel have recently inventoried OL
files held in Agency archives and much of this material has been
marked for eventual destruction.
This little shop is performing well and morale is unusually
high, owing primarily to the enlightened supervisory technique
of the seasoned branch chief. She is doing an excellent job in
cross training of branch employees while keeping them busy and
relatively happy working as a team on essentially routine chores.
Staff levels appear appropriate, and paper work examined by the
inspection team was meticulous.
Interviews elsewhere in OL revealed that this staff enjoys
a good reputation and stands ready to help whenever called upon,
even for assistance beyond what might be reasonably expected --
one employee, needing a steam iron, looked initially to registry
for help!
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Several people in this efficient shop, which is located in
a windowless vault, told our inspection team that they felt
largely ignored by the OL front office and would appreciate a
pat on the back or some evidence of management interest from
time to time. Accordingly, we suggested to the Executive Of-
ficer that he be more demonstrative in recognizing the exist-
ence and work of this smoothly integrated and highly motivated
team, a suggestion which was well received.
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Systems Analysis Branch (SAB)
The Systems Analysis Branch (SAB), which functions under the
Executive Officer, consists of^ employees headed by a highly
competent GS-14 officer who aptly and proudly describes herself
as a "computer person." This branch is the focal point in the
Office of Logistics (OL) for the development and maintenance of
Automatic Data Processing (ADP) applications. It serves as a
bridge between the Office of Data Processing (ODP) and OL and is
seen as a prototype shop which might merit emulation in other
components. In attempting to serve the interests of both ODP
and OL, branch members at times feel they are, as one said, be-
tween a rock and a hard place. In practice, however, the branch
seems to be a viable venture.
The primary activity of the branch is computer software
maintenance, and branch people deal principally with OL employees
in an advisory capacity, although they do have some contact with
vendors of computer software or hardware who may be interested
in receiving Agency requests for bidding proposals.
By training, experience, and inclination, branch personnel
seemed well suited for work in the computer application field
and all were thoroughly engrossed in their work. We were
pleased to note a high degree of job satisfaction among these
employees who enjoy attacking and solving complex ADP problems.
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At the time of the inspection we found SAB personnel
disturbed about what they perceived as unfair pressure from the
Procurement Division to advocate an ADP system (for the General
Procurement Branch) which SAB could not in good conscience sup-
port. In discussion with OL management several weeks later,
however, we determined that SAB views regarding this system had
prevailed.
We suggest that in the future OL management ensure that
pressure not be brought to bear on SAB to support preconceived
solutions to ADP problems; rather, that SAB be encouraged to
formulate its own solutions to such problems, or be specific-
ally tasked to advise on ADP matters on which management
decisions have already been made and indicated.
A problem which had caused some trouble in SAB was referred
to as "unilateral tasking," a process by which some OL component
would unilaterally decide that it needed a computer system with-
out checking with SAB. We were pleased to note that OL manage-
ment had responded to this problem by arranging for SAB to review
appropriate computer-related Management by Objective (MBO) pro-
posals and to negotiate on MBO milestones. We applaud this
sensible use of SAB expertise.
Our interviews in this branch produced information and
views on ADP proliferation in the Agency which we have included
in the attachment entitled: Problems in Procurement and Use of
Automatic Data Processing Equipment.
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The Security Staff
The Security Staff of the Office of Logistics consists of a
chief, a deputy, two security inspectors, an analyst, and two
stenographers. It is assisted by at- 25x1
tached to the DS&T and OTS contract teams but it does not exercise
administration control over these officers. This staff is re-
sponsible mainly for the security of offices occupied by OL and
for the Office of Security's Industrial Security Program, the
latter activity occupying most of its time and energy.
In conducting the Industrial Security Program, the staff
arranges for security clearances on key company officials and
reviews all classified Agency contracts before they are signed
to make sure that appropriate security clauses are included.
After a contract is signed, a representative of the staff or a
security officer attached to a contract team inspects the con-
tractor's facility and, with the firm's security officer, es-
tablishes procedures to protect classified materials and recom-
mends modifications, if required. Finally, the staff schedules
annual inspections of plants engaged-in classified work for the
Agency. In all, it deals with 0 firms with which the
Agency has classified contracts.* - -,
* The Security Staff is not responsible for security aspects of
OD&E contracts which fall within the purview of the OD&E
security staff.
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The problem has grown during the past year because of
greater attention being given to industrial security. Security
officers are now required to provide more detailed inspection
reports than in the past, and the staff is required to supple-
ment the work of the Industrial Security Branch of the Office
of Security. This branch was formed in 1977, after investiga-
tions resulting from the Boyce-Lee espionage case revealed
weaknesses in security arrangements of companies performing
sensitive work for the Agency. It is expected to carry out in-
depth audits of companies which have large and highly classi-
fied Agency projects. In some cases, the OL security staff is
required to review, with the companies concerned, recommenda-
tions contained in audit reports and to oversee security changes
recommended.
Because of an increasing workload,.the staff is developing
a plan to concentrate available man hours on companies handling
the more sensitive projects,
We urge the staff to
formalize such an inspection program as soon as possible.
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Personnel and Training Staff (P&TS)
The Personnel and Training Staff (P&TS), comprised of
employees, functions under the
Director of Logistics. Its chief reports directly to the Deputy
Director of Logistics.. This staff handles routine personnel
matters and is charged with supervision of the personnel panel
system, the basic management mechanism for assignment and rank-
ing of OL personnel. This system, as it is perceived to work
out in practice, presents one of the most serious morale prob-
lems in OL.
In our initial interview with the Chief of P&TS, who has
since been reassigned and twice replaced, we were told in some
detail how the panel system works. We were also told that most
OL personnel perceive the panel system as fair and efficient.
But our interviews failed to support this assertion. Indeed,
our inspectors received more complaints about the panel system
and the lack of career counseling (see below) than about any
other subjects covered in the hundreds of employee interviews
held. The basic complaint involved perception; most OL em-
ployees who commented on the panel system expressed the view
that panel findings are toga considerable extent ignored by OL
management. We were told time and again by apparently sincere
employees that OL management routinely tinkers with panel
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rankings in order to promote favored employees. We are not con-
vinced that the charges leveled against the panel system in
practice -- as opposed to the system in concept -- are accurate.
We are convinced, however, that a majority of the OL personnel
complement feels that the system as practiced has-been unfair.
We had formulated a recommendation on this matter but
deleted it in our draft owing to the issuance of Headquarters
Notice rhich states in part:
"Rankings and recommendations for promotion
made by an evaluation panel can only be changed
by the Di rector. "
We suggest, however, that the D/L review OL panel of rankings
and promotion recommendations for the past three years, compare
these to actual promotion lists, and publicize the statistical re-
sults of this review for the information of OL employees.
Another area of direct concern to P&TS is that of career
counseling. Here again we found a wide variance between the
views of P&TS and the "troops" of OL. In many interviews we
received complaints of lack of career counseling; in others we
were told that seeking career counseling fromP&TS.is or would
be useless since that staff is peopled with personnel careerists
who know little or nothing about logistics. In our inspection
of this staff we found P&TS personnel prepared to give career
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counseling and generally content that they were doing a good job
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Plans and Programs Staff
The Plans. and Programs Staff of the Office of Logistics acts
as an advisory body to the Director of Logistics on matters of
fecti_ng the overall support mission of the office. It assesses
the effectiveness and efficiency of OL functions, projects, and
programs and insures that the applicable policies, procedures, and
regulations are being followed by the various components of the
office. In the pursuit of these responsibilities, the staff con-
ducts reviews, surveys, and audits and deals with other Federal
agencies.
The staff comprises a chief,
Relatively senior in grade, the officers are drawn from various
components in the Office of Logistics. Most look on the staff as
a holding area in which they will remain until other jobs open up.
The turnover rate on the staff is, therefore, quite high.
This lack of continuity reduces the efficiency of the
staff and is the main problem which faces its chief.
The staff performs varied functions for the Director of
Logistics, including:
Review and updating of regulations pertaining to the
operations of the Office of Logistics.
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Preparation of special reports, such as a recent
study on overtime. At the time of our inspection the
staff was preparing special studies on the role of DA
careerists in the DO and on support agreements between
the Agency and other U.S. Government agencies.
Keeping abreast of legislation and executive
orders which affect OL.
Compilation of data on and monitoring of OL progress
against objectives in the MBO system.
Representing the DDA on the Agency's Emergency
Preparedness Committee.
Participating in the metrification of Agency
measurements and specifications.
Handling the EEO function and upward mobility
programs for OL.
Review of claims against the Agency arising out of
personal property lost or damaged while claimants are on
duty. A member of the staff reviews all such claims and
recommends terms of settlement for the consideration of
the Claims Review Board. This same staff member also
investigates Agency claims against employees for damage
to Government property.
The staff performs essential services for the Director of
Logistics. The chief is highly regarded by his personnel as a
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man with many years of experience in Logistics and as one thoroughly
familiar with the complex procedures, regulations, and statutes
which govern the operation of OL.
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Procurement Management Staff (PMS)
This tiny OL staff was created in 1966 when a study of OL
resulted in the creation of the intra-Agency Contract Review
Board (CRB) and decentralized research and development procure-
ment activity.
PMS is one of the most under-
manned and overworked offices in OL.
Overall, PMS handles and gives guidance to the D/L on
procurement policy matters. It is assigned a bewildering list
of tasks. Its chief, among other chores, is secretary of the
CRB; gives direction and guidance to five decentralized contract
teams within CIA,
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Office of Logistics Contract Teams
A far-reaching intra-Agency study in 1966 brought about the
creation of decentralized contracting teams, assigned to major
Agency components to expedite their contract and procurement ac-
tivity. The contracting teams include contract negotiators,
security officers, and Office of Finance audit personnel. At
present there are four such teams handling Agency procurement
programs: three assigned to DDS&T (one each in OSO, ORD, and
OTS) and one small team in NFAC.
A fifth contract team,
focusing on systems development for both Agency and national pro-
curement programs and located at the Chamber of Commerce Building,
was disbanded in March 1978. Its members have been reassigned to
the other teams mentioned above.
senior OL officer sitting in the Office of.the DDS&T coordinates
the other three contract teams operating within the DS&T and is
held accountable by the DDS&T for the activity of these teams.
The teams, each numbering
officers plus
clerical personnel, are expected to take care of. their own
people and administrative problems, although for procurement
guidance and assignment of members to the teams, the DD/OL or
the C/Procurement Management Staff/OL are directly involved.
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A number of OL contract officers suggested that a separate
Office of Procurement be set up, independent of OL, which would
incorporate the Procurement Division, the contract teams, and
As envisaged, such an office
would also create a procurement officer career panel and develop
training programs, and would prepare its employees thoroughly in
the increasingly complex world of compliance and legal strictures
imposed by other U.S. Government bodies. This suggestion is dis-
cussed elsewhere.
Various members of the contract teams had strong views
concerning sole-source bidding as it applies to the Agency. We
have addressed this matter under the Procurement Division sec-
tion in this report.
In the interest of speeding up the contract process, a
number of contract team officers stated that if OL could re
vise its regulations to waive detailed audits on firms being
granted small contracts especially those
firms which have performed reliably and well for the Agency
in the past, considerable savings in time might be realized.
Recommendation 11: That the Director of Logistics
initiate a study of the present contract process
focused on possible discretionary elimination of
detailed audits on firms being given contracts of
less than if those firms have a history of
prompt and reliable performance for the Agency.
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Relations with the General Services Administration (GSA)
The Office of Logistics deals with the General Services
Administration (GSA) in regard to design, building, alteration,
leasing, operation, protection, and maintenance of buildings
which the Agency occupies in the United States. The Public
Buildings Act of 1959 gave the Public Buildings Service (PBS)
of GSA authority over construction of Federal public buildings;
and the Public Buildings Act of 1972, Public Law 92-313, es-
tablished the current method of funding PBS operations through
a special fund, the Public Buildings Fund, which is financed
from charges paid by agencies occupying GSA-controlled space.
The charge is known as the Standard Level User Charge (SLUC).
The Agency will pay under SLUC for FY 1978 about
Direct responsibility for the operation of a Government-
owned building rests with the GSA building manager. Typically,
he is a GS-13 officer who is assigned responsibility for a
number of buildings.
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