REPORT ON AGENCY PROCUREMENT MANAGEMENT

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP86B00269R000900100001-0
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 4
• Document Creation Date: December 20, 2016
• Document Release Date: July 25, 2006
• Sequence Number: 1
• Publication Date: October 4, 1966
• Content Type: MF

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D L Sno3
'YF
4 O CT 1966
M NNORANDUM FOR: Executive Director-Comptroller
SUBJECT . Report on Agency Procurement Management
1. Forwarded herewith is the re-port -nre-narf-d the consultant
provides
a n1grily perceptive and useful view of the Agency's procurement ac-
tivities and makes a number of very cogent recommendations for the
improvement of our activities in this field.
2. Many of the recommendations are stated in terms of general
principle. They d( not detail specific steps to be taken, how those
steps should be phased, nor the adjustments required of the components
affected. We feel that there is advantage in this, in that consider-
able latitude is available for accommodation to unique problems that
might arise in the course of implementation. Specific details of
implementation were not feasible in a report such as this; nor were
they contemplated. In reviewing the report we have found it useful
to keep its findings and recommendations separated. We believe that
even if the recommendations are not accepted the findings still indi-
cate clearly the need for strong corrective action.
3. The report treats procurement in its broadest sense, includ-
ing purchasing, management of stock inventories, logistics support,
R&D contracting and management, and related production. The report
concludes that there is no central authority below the executive level
over these activities, and recommends that a Special Assistant for
Procurement, under the Deputy Director for Support, be appointed to
function at the apex of the procurement pyramid, to serve as Agency
policy and coordinating officer on all procurement matters. The
actual management of the major procurement activities would be divided
between two directorates: management of the normal supply and logis-
tics procurement activities would be under the Office of Logistics
in the Support Services; R&D procurement and related production (and
the special., procurement of OSA) would be under a new R&D Procurement
Office in the Directorate of Science and Technology. To make these
two separate operations fully effective, each would require the
suppor- of,an automated management information system. The develop-
ment oft?iese management information systems--the consultants see
them as sub-systems of one over-all system--is viewed as an integral
factor in effective implementation of the recommendations. There
are a number of other recommendations that are either part of the
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over-all organizational concept or that are intended to strengthen
current procedures.. These-include the consolidation?of.all audit
functions under the Audit Staff of the Office of the Inspector General.
and establishment of a formal revolving fund for financial management
of the Agency's procurement pool.
4. We strongly commend the report for your favorable considera-
tion and state our endorsement of the main thrust of its findings.
In doing so, however, we wish to note certain factors'that should be
weighed in any decisions to accept and implement the recommendations.
We have also proposed assignments of responsibility for implementa-
tion if the major recommendations are accepted. We have also suggested
in paragraph 10.d., below, the employment of outside assistance in the
implementation of some of the recommendations. Our comments on the
major recommendations, as summarized in Chapter VI of the report,
follow:
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Their contribution to consideration of those problems has been con-
structive.' Their broad basic conclusions about the Agency's organi-
zation for procurement, es-jSecially in the field of R&D, present a
course of action for resolving a problem that will grow in importance
as the Agency finds itself drawn more deeply into complex R&D programs.
Approved For Release 2006/07/26: CIA-RDP86B00269R000900100001-0