FY 1974 PROGRAM ESTIMATES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP86-00244R000200520005-3
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 14
• Document Creation Date: December 9, 2016
• Document Release Date: March 11, 1999
• Sequence Number: 5
• Publication Date: March 9, 1972
• Content Type: MF

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MEMORANDUM FOR: Deputy Director for Support
SUE; ECT : FY 1974 Program Estimates
1. In response to your request and the guidance provided at the 14 January and
1l February 1972 meetings, we are submitting the following in aupport of our FY 1974
Prograin Estimates from which you may wish to extract key portions in the prepara-
tion of the overall Support Directorate pre am memorandum. In compiling this
information, we have structured it to be compatible with the six categories which
are to he addressed.
a. Major New or Decliui AA,:tivities:
(1) The closing of the will have some impact upon the
Office of Logistics (OL). V pile it is too early to assess the total effect, we
do know that certain procurement and supply activities in support of Far
East stations will. of necc ,city, be transferred and carried out by our
activities in DONUS`, I.e., Headquarters, and 25X1 A
. Recognition of this fact was made in the assignment of five 25X1 A
additional positions to the Office of Logistics in FY 1973 to handle this
increase in workload. We are not in a position at this time to assess the
impact beyond the commencement of FY 1974 or after the removal of the 25X1 A
Residual Force from - Events in Southeast Asia (SEA) during this
period will dictate further needs in this area; however, for purposes of
this estimate, we have budgeted for additional funds in FY 1973 .and FY 1974
at our depots for packing and crating efforts formerly performed 2.5X1 A
In addition, we anticipate the General Services Administration (GSA)
reimbursable labor provided at our will increase 25X1 A
approximately 10 percent This latter element is needed
to cover an anticipated 23 percent tacreage in the number of line items
to be handled by tint 3 depot. Total increase for the above 1.9 approximately
$66,000 per year over current levels.
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(2) Printing Services Division (PSD) is continuing its collaboration with
the Office of Computer Services (OC'S.) and intelligence production elements
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of the Agency targeted towards advances in the automated text processing
systems which will more adequately meet their needs. It is anticipated
that, by FY 1974, it may be necessary to install a computer terminal
system in the PSD Building which will interface with OCS and the intel-
ligence production offices which are producing the Agency's publications.
We are unable to estimate the budgetary effect of this change in our
production system at this time. There is little doubt, however, that the
continuing emphasis on high-quality printing in the Agency's publications,
as well as the increasing necessity for speed in their production, cannot
be met unless our production system is automated more effectively than
at present. We also anticipate that the use of microforms in connection
with the information handling and storage operations of the Agency will
continue to expand and at an increasing rate. This will necessitate con-
tinued emphasis on the acquisition of equipment and the development of
facilities which will meet these increasing needs most efficiently. The
funds for this latter effort are included in our estimates and are addressed
further in paragraph f (3), below.
b. Particularly Sensitive Objectives or Issues:
Although we have not included an estimate in either our FY 1973 or
FY 1974 submissions, there has been an objective for some time to
provide or reimburse employees in the metropolitan area who must pay
for parking. We recognize that this is a sensitive issue, but feel that
the equities of the situation call for some form of relief. The annual
cost to the Agency to provide free parking to those employees who are
currently paying to park would be approximately $273, 000.
c. Major Anticipated Problems
We anticipate a number of major problems which are of considerable
concern to us and may have substantial budgetary impact upon both funds
and personnel ceilings. However, the factors surrounding these actions
are in a state of flux and it is not possible or practical at this stage of the
game to attach dollar or personnel figures to them. As an example:
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(1) A major problem which we anticipate but cannot quantify at this
point is the trend of GSA to provide less and less service due to their
severe budget restrictions and their lack of qualitative expertise to
service sophisticated special-purpose areas. We have already experi-
enced some effects from this cumack. One of the most serious areas
lies in the maintenance and operation of utility systems in support of
our special-use areas. GSA considers this outsida their area of normal
responsibility. At the present tisie, a complete study of this situation is
underway; upon col -ipletion of the study, appropriate recommendations
will be m.nade. Depending upon the recommendations made and approvals
given, our entry into fields previously reserved to GSA could have major
impact upon both personnel and dollar resources.
(2) A number of proposals have been put forth involving the consoli-
dation of computer facilities within the Headquarters Building. Each
involves major relocations, renovations, and, to a varying degree,
upgrading of heating, ventilation, and air-conditioning support systems.
Several involve major construction efforts. Until a total plan is approved,
it is not practical to assess the total dollar impact on Agency resources.
(3) Another of our concerns for which a tangible figure is not avail-
able concerns the loss of overseas assets, which have been heavily
25X1 C involved in large-scale activities. The loss of these assets
seriously impacts upon our ability to support such operations should
further requirements arise in SEA.
(4) Closely allied to the above is our concern with the need for
unreduced logistical support to Agency elements both in CONUS and
throughout the world in light of a continuing reduction in personnel to
accomplish this mission.
d. Unfunded Requirements that May Result in lequcsts for Releases
from the Agency's Reserve for Coatin encies During FY 1973:
In light of the definition of the purpose of the reserve, we do not feel
that any high-dollar contingency with which we may be faced will be such
that reserve funds will be approved for use.
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e. Currently Pending or Anticipated Decisions on. New or Changing Activities
for \=,,'hich the Primary Resource Impact on the Agency will Occur Beyond
the Program Period Undcr Consideration (i.e., FY 1974 and Beyond):
(1) For a number of years, the Building Planning Staff, OL, has been
studying various ways in which there could be a consolidation of Agency
components on the Langley compound. Various master plans were developed;
however, the recent acquisition of a smaller tract of land from the Federal
Highway Administration than originally anticipated has caused a re-thinking
of holy best to utilize the land obtained.
One of the elements in the original master plan appears to be worth
pursuing. It provides for an expansion of the current PSD Building presently
located on the compound. As part of the overall Master Plan, eventual
consolidation at Langley will find like functions working in the same areas.
Since the PSD Building already houses a major OL component which by its
nature and special requirements must remain in place, this building is
planned for consolidation by OL. On this basis, it is tentatively planned to
move components of OL now located in the Ames Center and Headquarters
Buildings into the new extension. Space vacated by OL will be backfilled with
other components now located in the Magazine Building. This move will
consolidate OL in the PSD Building, with the exception of the Headquarters
Engineering Branch, Real Estate and Construction Division (HEB/RECD),
certain elements of the Logistics Services Division (LSD) directly concerned
with the operation of the Headquarters Building, and the Special Printing
Plant located on the seventh floor.
While other Agency units could be moved into the extension, because
of its size and relation to the original building occupants, OL is the preferred
new occupant. Space made ava i e n ,li~acf uarter Wilding by yagati
OL units will be made available to the Office of Basic and Gco aDhic In, tel
consolidating ..
a-*- DD/I co onents in the north wi of
licence OBGI further
tale Headquarters Building.
As one aspect of this phase of master planning, the Agency could
return to GSA the "second class" Magazine Building t
o ?q et.F Tho release of the Magazine Building will provide a
cost savings to the Government of $301, 267 is rental per year; it will also
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provide to the Agency an annual recurring savings of $65, 000 through
reduction In the guard force, plus additional savings through reduced
transportation requirements, reduced courier and messenger service,
reduction in telephone mileage charges, and sizeable savings in
personnel time expended in travel to and from Headquarters and Rosslyn.
The present building houses a printing plant and the addition will
provide for consolidating ti ose PSD operations which are presently
located in Headquarters, and the paper storage at The 25X1 A
construction of humidity-controlled space for paper storage is a neces-
sity in present-day computerized printing. Present techniques at
25X1 A for conditioning paper are barely satisfactory. The storage
25X1A requirements at- will be greatly reduced and could release up
to 4, 000 square feet for other storage requirements.
It follows that as long as you have a warehousing requirement
not only for PSD but for the Building Services Branch (i3SB), LSD it is
logical to consolidate warehousing into one location for greater efficiency.
This construction will provide roplacem nt storage space and release
potential office space now used for bulk storage in the Headquarters
Building of approximately 4, 000 square feet. In consolidating the Ground
Floor Printing Plant (Ground Plant) with the ocher printing activities,
approximately 7, 000 square feet of additional Headquarters space would
be vacated. Therefore, by this expansion, we would gain in total 11, 000
square feet in the Headquarters Building to meet urgent expansion
requirements.
As part of this construction, a pedestrian and services tunnel
will connect the Headquarters and expanded PSD Buildings and provide
for services; i.e., extensions of the Headquarters pneumatic tube
systems, secure telephone lines, etc.
The total estimated cost of design and construction for this
addition is $7, 115, 000. This amount includes the construction of
approximately 121, 994 square feet of floor space suitable for office,
special -purpose axes, and storage. It also includes the necessary
installation and connection of all utilities to our present powerhouse
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and the construction of a tunnel linking the PSD Building to the Head-
quarters Building and a small expansion of the present West Parking
Lot parking facilities to accommodate 150 vehicles,. TIds would
meet requirements generated by OL consolidation and is consistent
with the earlier discussed Master Plan.
For budgetary purposes and to achieve occupancy in FY 1978,
It is estimated that $530, 000 will be required in FY 1974 for architectural
and design work with construction to be initiated in. FY 1976. Construc-
tion funds in the amount of $b, 565, 000 will be required In FY 1976.
(2) Included in our Program Plan submission for FY 1973 was a
proposal for the planning, design, and construction of a new building to
25X1 A replace the present NPIC . This new facility is necessary to
provide adequate space and meet environmental conditions required by
sophisticated and sensitive equipment unique to this operation. The
present facility is antiquated by modern and scientific standards and is
25X1 A subject to further deterioration by planned construction programs in the
immediate area;
Our proposed plan estimated the cost of conceptual design,
including ancillary studies, at approximately $1,185, 000 and the basic
architectural and engineering services, including executive agency
administrative costs, at $2,813,000. or a total of $4,000,000. It is
our understanding that the Office of Management and Budget (ONIB) has
authorized only $500, 000 in FY 1973 to initiate the conceptual design
and ancillary studies. In light of this reduced figure, we have developed
a revised plan for the design and construction of the new NPIC building
outlined below:
Based upon the availability of $500, 000 in FY 1973, we
would initiate limited conceptual design efforts and special
studies relating to structure, foundations, liquid waste
disposal, or recycling, ad microseismic surveys. However,
in the event surge funds c:'- yid be made available in FY 1972,
we could initiate a porticni of the above efforts totaling approxi-
mately $190,000 With the balance in FY 1973. Concomitant with
the above, we would need approval for an increase in our contract
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ceiling to hire engineering aad other technical personnel to sup-
plement the present small Building Planning Staff (BPS), OL. It
would be impractical to undertake an effort so complex and of the
magnitude contemplated without an augmentation of this staff.
Necessary changes in cost and ceilings for later years are shown
below.
In FY 1474 the conceptual design and related studies would
continue. The focus of the design efforts would be narrowed and
become more detailed based upon a site selection in the last half
of FY 1973. The total estimated cost of these efforts in FY 1974
is approximately $660,000.
Detailed architectural design and engineering for construction
would be initiated in FY 1975 at an estimated cost of $3, 510, 000
and could be completed in 12 months.
Based upon the foregoing, a construction appropriation and
contract to proceed should be made in FY 1976. The estimated
cost of construction is approximately $49,700,000; and, if con-
tracted for in FY 1976, it is :anticipated that the new building
would be ready for occupancy in the latter part of FY 1978.
Included in the above amount is approximately $2, 500, 000 for a
liquid waste disposal or recycling system. It is a distinct
possibility that we may be faced with such a requirement for
NPIC whether we construct a new building or not. The environ-
mental laws and regulations are becoming more and more
stringent in this regard.
In summary, the budget and personnel estimates by fiscal
year are as follows:
SECRET
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(In Thousands)
FY 73
FY 74
FY 75
FY 76
Special Structural Foundation
and Liquid Waste, Seismic
Studies
220
260
Phase 1, Conceptual Design
280
400
Detailed A&E
3,510
Construction
49,670
$ 500 *
$ 660
$ 3, 510
$49,670
* $190 could be surge funded in FY 1972.
Contract Personnel to be Phased-in as the Project Progresses:
Civil/Structural
Electrical
Mechanical
Systems
Construction
Technic ial-Computer space planners
Architects
Drafts man
Clerk/Steno
Security (Construction Monitoring)
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Contract Ceiling Increases by Fiscal Year:
Increase
l Y
Total
(In thousands)
Salary and Support
ear
Fisca
FY 1973 *8
8
$ 175
FY 1974 3
11
210
FY 1975 0
11
210
FY 1976 4
1.5
470
FY 1977 1
16
550
FY 1978 -4
12
415
* If FY 1972 surge funding is made available, three of these positions will be
required in that fiscal year.
f. Chan&29 in Resource Needs for FY 1973 and FY 1974:
(1) We are currently experiencing a rather substantial increase in
the use and cost of printed forms in FY 1972. Our original budget
estimate based on prior experience was $270, 000. However, a require-
ment to furnish six new forms to be used in conjunction with the ACT
communications system has seriously depleted this account. W 'hile
ACT will not be operational until late spring, it has been necessary to
order the new forms for testing and training, as well as stocking initial
quantities. In the interim, we must still utilizo the old forms which
have also increased because of increased traffic. There will not be a
corresponding nonrecurring cost in the OL forms budget for FY 1973
or FY 1974 as the new forms come into use, since four of the new forms
replace teletype paper which is currently furnished and budgeted for by
the Office of Communications. An offset in our respective budgets is
necessary. The net increase in FY 1973 and FY 1974 is approximately
$60, 000 over current levels. The shortages in FY 1972 will be addressed
in a separate memorandumxz. -
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(2) For the past several years, we have undertaken a planned and
orderly rehabilitation and renovatian program at the . The 25X1 A
current budget provided for the construction of a new rehabili-
tation building and the design of an addition to the equipment maintenance 25X1 A
building and a new carpenter shop. Our original FY 1973 submission called
for the construction of these latter two buildings; however, funds for this
effort were deleted during budget reviews. In order to continue the
program and maintain our planned rehabilitation schedules, we have
resubmitted in our FY 1974 estimate the cost of constructing the main-
tenance building addition and the new carpenter shop and have also
included the planned design and construction of new post engineer shops
and the design for a fire house modernization. The estimated cost of the
above in FY 1974 is $480, 000.
(3) As a result of a survey conducted several years ago by a printing
consultant, a program was established for the planned replacement of
equipment which exceeded its useful life due to wear and tear or obsolescence
and the purchase of new and different equipment to meet changing require-
ments. This program was successfully carried on until FY 1972 and
FY 1973 during which years the budget was substantially reduced to
$122,000 and $220, 000 from $220, 500 and $395, 500, respectively. This
represented substantial reductions in the planned schedule of purchase
and replacements. In order to get the program back on an orderly schedule
and insure minimal breakdown in production and handle the new require-
ments being generated, our FY 1974 submission is being submitted in the
amount of $362,261, or an increase of approximately $142,000.
(4) Recent decisions by governmental and regulatory agencies have
caused substantial increases in the cost of support services provided by
OL which were unprogrammed in FY 1972 and FY 1973 and will continue
in years to come; namely, postage and telephone rates. The impact on
FY 1972 postage costs will be addressed in a separate memorandum.
However, the combined effect of both postage ($42, 320 - FY 1973, and
$48, 420 - FY 1974) and telephone rate increases ($299, 819 FY 1973/74)
result in an increase of approximately $342,000 And $348, 000 in FY 1973
and FY 1974, respectively. In addition, we forecast a continuation of the
nominal increase in services and toll charges we have been experiencing
in past years.
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(5) While not large in themselves, a number of new requirements
have been added under support scrvice3 % hieh have a substantial
cumulative effect and impact seriously on our current budget as well
as FY 1973 and FY 1974. These new requirements can be categorized
as modern or new generation office supplies and equipment. The total
cumulative dollar amount for these items is $195,000. V Chile not all
inclusive, the following are typical examples:
(a) The use of Xerox paper has substantially increased
as a result of Cable Secretariat's use of this method for
duplicating and the ever-increasing volume of communications
traffic ?- $20, 000 per year.
(b) Prior to February 11,171, the cost of Xerox developer
was included in the Xerox equipment rental coat which was
charged to the Individual using component. A change in
Government policy precluded this feature in all contracts
negotiated after this date. Y= hile there is no net increase in
cost to the Agency and savings are realized by the using com-
ponent, it now becomes necessary for OL to separately procure
and stock these items, %.,ith no corresponding increase in our
budget $55, 000 per year.
(c) A similar situation exists within the Agency for the
procurement of microfilm printer Supplies. Each component
utilizing this equipment formerly funded tre cost of its own
supplies. In therinterest of consolidation and more effective
stock and procurement management, this function will be
absorbed by LSD in FY 1973. Again, there is resulting decrease
in component costs, but a corresponding increase must be made
in the OL budget to procure these supplies -- $17, 000.
(d) A recent decision was made to establish the IBM
Selectric Ii typewriter v ith self -obliterating ribbon as the
Agency standard. The self-obliterating ribbon, while lasting
as much as 12 times longer than the one-time ribbon, costs
$6.90 each, versus $ .39 eacii. Because the program is new,
no firm usage rates have been developed at this point. Never-
theless, at the above cost rates and expected life cycle, we
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anticipate an increase in yearly costs for this item, exclusive
of the initial stock procurement costs which must be expended
in the current year -- $20, 000 per year.
(e) In an effort to improve the quality of employees' working
environment, several programs have been instituted in conjunc-
tion with the Agency Fine Arts Commission. One is the gradual
replacement of the standard Class A executive furniture with the
more modern unitized-wood type of furniture. In order to make
these changes, it will be necessary to expend funds at a greater
rate than usual for FY 1973 and FY 1974 in order to acquire an
adequate stock of furniture -- $27, 000 per year.
(f) Several years ago the Office of Security (OS) conducted
a survey of safe filing cabinets and eetermined that certain types
were obsolete: I any Remington Rand, 2 any make with a receding
door, and 3 twist handle Herring Hall Marvin cabinets with the
lock in the middle of the control drawer. The report of the Building
Security Committee stated that "as a start towards the elimination
of obsolescent security containers, any of the above-mentioned
containers which are returned to stock should be surplused as
received. No money should be spent for repair of these containers
and, once returned to stock, they should not be reissued,"
In response to our request in April 1970, OS advised that
we should anticipate 60 condemnations for the balance of FY 1970
and approximately 300 safes per year thereafter until we had dis-
posed of the obsolete equipment. To complement this plan, OS
and OL moved Remington Rand and other obsolete safes from less
secure areas into vaults or other more secure areas as opportunities
presented themselves, thus adding to the general security posture
until these low-security cabinets could be disposed of completely.
-In FY 1971, through use of budgeted funds and supplemental
funding, we were able to procure 237 safes. Through reprogramming
in the current fiscal year of $54, 000 and a like amount in FY 1973, we
will be able to procure 144 safes each year. However, at this rate of
replacement, it will take approximately 26 years to replace these
obsolete safes.
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In view of the foregoing, we have increased our estimates
for FY 1974 and subsequent years to $108, 000, thus reducing the
replacement time to 13 years. This process can be speeded up at
any time by the availability of supplemental yearend funds. The
total cost of the replacement program is approximately $1, 600, 000.
The above are just a few examples and are not meant to be all
inclusive. We continue to face new or additional requirements in the
Administrative Stock area each year and face increasing costs for these
materials and services.
25X1A
In addition, most of our modifications, renovations, and other
reimbursable services at the Headquarters Building are accomplished by
GSA forces In the Wage Board category. The approved and forecasted
salary increases directly affect the cost of the individual projects they
accomplish on behalf of LSD. While we are not able to accurately fore -
cast the total in: reases based on these salary adjustments, we estimate
an increase of $84, 000 and $119, 000 for FY 1973 and FY 1974, respectively,
based solely on the current level of reimbursable work they are performing.
(7) In our Program and Budget submissions for FY 1973, we had
included an amount of $1.9 million for engineering and support projects
to improve or accomplish major modifications to the utility systems in
support of both special-use areas and general office space. We have
since learned that OM approved only $700, 000 of this amount and that
the Office of Planning, Programming, and Budgeting (O/PFB) agreed to
surge fund this in the amount of $435, 000 in FY 1972. This leaves a
balance of $265, 000 for FY 1973, and we are revising our budget to
reflect this amount and indicating those projects which can be
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accomplished within this amount. The remaining $1.2 million of
the original $1.9 million requested and the projects associated
with this amount is included in our i~Y 1974 submission, together
with certain new projects which are planned for that fiscal year.
A list of these FY 1974 projects and explanation is set forth in
Attachment I to this memorandum. The total estimated cost for
FY 1974 is $2,048,000.
(8) For a number of years, GSA, operating under a signed
agreement with this Agency, has borne the cost of disposing of
waste They assumed this
cost anticipating reimbursement
however, no practical or economical method has been devised
for bailing or packaging such material into a salable product.
In view of this, GSA ii informed us that they no loner can
carry out this function without rniniburserent which is estimated
at $75, 000 per annum. We have reminded GSA of their agreement
and have temporarily forestalled this charge; however, it is our
understanding that the Pentagon is currently reimbursing GSA for
this service, in full, and we feet it is only a matter of time
before we will have to absorb the full cost unless a techntque for
selling the waste is developed. In view of this, we deem it only
prudent to include an amount in our FY 1974 budget an antici-
pation of this cost.
2. Our estimates for FY 1973 and FY 1974 make no provision for the imple-
mentation of the SIPS program. We have now been informed by the SIPS Task Force
that they have responsibility for the entire program budgeting.
3. In support of the above Program memorandum, we have attached the
machine run (Attachment 2) detailing our FY 1974 Program Estimates which have
been annotated to snow target priorities and performance evaluations by FAN account.
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