COST REDUCTION AND EFFICIENCY

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP86B00963R000200020004-9
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 7
• Document Creation Date: December 16, 2016
• Document Release Date: July 8, 2005
• Sequence Number: 4
• Publication Date: August 27, 1981
• Content Type: MF

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DDS&T-3946-81
MEMORANDUM' FOR: Chairman, CORE Committee
James H. Taylor
Associate Deputy Director for Science and
Technology
SUBJECT: Cost Reduction and Efficiency
1. 1 am attaching some thoughts on cost reduction as
it applies to the Agency in general and to the DDS&T in
particular. Our ideas fall generally into three categories:
Functions Requiring Capital Investment, possible Procedural
Changes, and Programmatic Considerations. We have chosen
this breakdown to highlight the programmatic nature of the
DDS&T's work and, thereby, illustrate how some nonspecific
cost reductions might impact the collection and processing
of intelligence data.
2. Let me know if you have any questions.
amen
Attachment:
As stated
DOWNGRADE TO UNCLASSIFIED
WHEN SEPARATED FROM ATTACHMENT
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I. Functions Requiring Capital Investment
Computer Aids and Automation
Some DDSU offices are already well along in applying
computers and digital techniques to functions that will
help them to improve their efficiency and support. NPIC,
for example, is in the early phase of an extensive upgrade
in image exploitation; new equipment like IDEX will make
heavy use of digital processing to help improve the
interpretation process. In FBIS the MIDAS system, when
complete, will provide for more timely publication of a
larger volume of information than is currently possible.
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A continuing and even larger investment in this area
will "o much toward improving our use of people and the
quality of their product. Some of our overseas activities
are particularly amenable to automation. FBIS, for
example, could process media information more quickly
and accurately by computerizing some of the functions
in its field bureaus; many broadcasts could be monitored
from unmanned facilities by remote control. Modern
communications methods using digital techniques would
speed the transmittal of up-to-date information from
FBIS bureaus Some of the SIGINT
data could, in tact, be preprocessed overseas by use of
digital techniques. The advent of new and increasingly
productive image collection technologies will demand
application of digital methods and equipment to process
and exploit the data with the speed and accuracy needed
to respond to our consumers. (S)
Modern computing techniques are leading us to
consider other
li
ti
W
app
ca
ons.
e will want to bring in
new word processing systems and to move toward the
transmittal of mail by electronic means. Inventory
and stock control methods can be overhauled. The entire
office environment will gradually change with the advent
of more of the new and smaller microprocessing technology.
(U)
New Building
After ODFE and OSO move into the newl building,
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the DDS&T will be using n the
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Washington Metropolitan area with roughly
of
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our total space in the Headquarters building. e
resulting cost in vehicle mileage and man hours lost by
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the Directorate is already estimated to exceed
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annually. The effort now underway to construct a new
building on the Langley compound may someday lead to a
reconsolidation of many of our people at Headquarters.
For at least another six years, however, the Directorate
will be faced with a serious communication problem. An
investment in effective and secure telephone and tele-
conferencing equipment is a priority need in order to
conduct our business and avoid much costly and time-
consuming travel. Such an investment will be useful,
in fact, even after a new building is occupied since
some DDS&T components such as NPIC do not lend themselves
readily to location at Langley. (C)
Specialized Laboratories
New technologies are constantly emerging in many
areas interest to intelligence collectors and processors.
For example, we have been looking recently at new techniques
that can be applied to the fabrication of integrated
circuit chips, items that find wide use in our business.
We will shortly be considering whether a way can be found
to set up a special fabrication facility under Government
control where techniques such as these could be used in
a secure and cost effective way. (C)
Examples
Some specific examples of functions that could benefit
from the application of capital investment funds follow.
1. FBIS is one of two DDSEIT offices with a
significant "production character," NPIC being the
other. As mentioned above, a major NPIC upgrade
is already underway and a part of FBIS is also being
automated. Our next priority in this area would be
to automate FBIS Headquarters Press Translation/
Publication. This would improve the quality and
timeliness of JPRS serial publications. The cost
is estimated at over six years.
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3. The use of more word processing equipment
and the application of electronic mail distribution
systems at NP IC would facilitate the transfer and
acquisition of information. We estimate that an
initial investment of might result in
annual savings of $30,000 and up to two man years.
4. The technical support that OTS provides to
DDO for overseas operations obligates OTS to maintain
si:hsrant ial supplies and equipment in a state of
readiness for use. Automated techniques could be
applied to both the testing and periodic inventory
procedures that OTS must carry out in order to assure
that they have the necessary stocks on the shelf.
IT. Procedural Changes
Much time and money is spent in satisfying bureaucratic
demands that, in many cases, are unnecessary. Most of these
are imposed by regulation, law or some other source external.
to the DDSFT. Nevertheless, we deem it appropriate to suggest
consideration of some relief in this general area. For example,
domestic travel is used extensively by DDS?T in order to carry
out our commercial contracting activities and to remain abreast
of technological developments of potential use to the Agency.
For every trip a voucher must be prepared delineating not only
the transportation costs but also the per diem and miscellaneous
reimbursable expenses. Considerable savings should result
if regulations were modified so that a fixed allowance were
paid that was predetermined on the basis of destination and
time. (C)
The contents and format of our Financial Reporting System
(FRS) and Staffing Complement Report (SCR) could usefully
be revised. FRS contains information that is of little use
to many people and the SCR is redundant to other reporting
systems. Both are viewed less as useful interactive tools
than as often out-of-date record-keeping systems. These are
examples of only two current reporting procedures that need
to be revised to save machine time and personnel resources.
Analogous changes might be considered to improve efficiency
in such areas as the use of petty cash, pouching and shipping
methods and the purchase of airline tickets. (U)
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III. Programmatic Considerations
DDSU`s largest expenditures and, as a result, its largest
potential savings necessarily lie in the development and
collection programs for which the Directorate is responsible.
The development of an advanced system like the EDITS document
copy equipment is costly, running into the millions of
dollars. Operating an overseas bureau for media monitoring
or running a clandestine SIGINT survey is expensive. These
and many other of our types of programs have suffered for
the past decade from very sizeable budget and personnel
'e-'uctions. 1+,'e have oni), recently begun to recover from
some of these reductions and to get some real growth into
too long neglected areas. Programmatic reductions now would
halt or, at least, slow our progress toward rebuilding a
viable capability, using modern technologies, on many fronts.
Significant cost reductions in DDS&T would require cancellation,
deferral or reductions in programs. (S)
In the Production area, for example, we foresee a need.
for I lover the next five years to explore new
technologies to improve the effectiveness of NFAC analysts
and the exploitation of ELINT and other intercepted signals.
Part of this effort will provide for research and development
in analysis techniques and in information processing technology
to support the production of intelligence. It includes the
development of new analytical methods in the fields of
Economic, :Military and Political Analysis and advanced infor-
mation handling concepts and systems to support intelligence
analysts in preparing and communicating finished intelligence.
DDSETT also will continue to provide a flexible and responsive
signal analysis capability to support the specialized
SIGINT collection operations and the key intelligence
production objectives for which the CIA is responsible.
Special attention will be given to high priority weapon
system signals from the many new Soviet programs expected to
be under development. Included here are several Thematic
programs or Production Enhancements designed to improve the
quality of intelligence. These Production Enhancements might
ver the next five years. A reduction
of ess than 10 percent in DDSF,T R&D support to Production,
therefore, could totally stop our efforts in this area.
It could deprive us of some of the R'D being conducted in
geoeconomics, applied statistics, military analysis, political
analysis, and information systems. No less vulnerable are
our efforts to improve our capabilities for the analysis of
telemetry signals. (S)
Imagery Collection and Processing will require 25X1
between 1983 and 1987. NPIC must, of course, continue to maintain
the ability to provide the Intelligence Community with an
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exploited product from imagery collection systems already
in operation while building for the future. We must, at
the same time, provide the resources to manage -
ment of new collection systems.
of the amount to be spent through 1987 is to upgrade NPIC's
facility and give it the ability to exploit the imagery data
that will be received in large quantities from the new and
advanced collection systems which will be in operation in this
decade. The balance will sustain our existing capability.
Major attempts to save money in this area would almost
certainly impact the u~,grade, since NPIC must maintain a
basic level of Community support. Reductions would delay
our preparations for exploitation of important imagery data
beyond the time when the new collection systems begin to
come on line. (S)
As in the case of Imagery, DDSIT conducts an R&D program
to exploit new technologies for collection and processing
of SIGINT data. We also provide the people to manage the
development of new collection systems for National programs.
These efforts must be funded at the projected levels in order
for us to stay abreast. of Community needs. (S)
The DDS&T provides technical support to the DDO through
the development and procurement of agent support equipment
and specialized operational support overseas. The Directorate
also carries out certain technical collection projects in
priority intelligence areas, such as those involving foreign
nuclear developments. Some will be required
over the next: five years to ma ain viable programs in
all of these areas. We and the DDO have been working for
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several years to increase our budget for procurement of needed
o ~ipment, particularly in covert communications. We have
been working toward that end and have factored the DDO's
_eed into our planning. Reductions are always possible,
only at enormous cost in operational security and
of iciency. (S)
.bout will be needed between 1983 and 1987
to continue FB overt media monitoring program, including
tie operation of some Closing bureaus
would save money, but at high cost--by depriving the U.S.
>, e of vital information in areas where there is no
other source capable of providing it so quickly, accurately,
or economically. (S)
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