LETTER TO HONORABLE RICHARD M. NIXON FROM ALLEN W. DULLES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90-00610R000100220001-2
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 8
• Document Creation Date: December 14, 2016
• Document Release Date: June 10, 2003
• Sequence Number: 1
• Publication Date: April 13, 1956
• Content Type: LETTER

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CENTRAL' INTELLIGENCE AGENCY
WASHINGTON 25. 0. C.
vAPR 13 j~ 6
Washington 25, D. C.
Honorable Richard M. Nixon
President of the Senate. .. ... .
Dear Mr. ,Vice President:-
. poses# If together with ?a sectional analysis of that legislation.
There is forwarded herewith a draft of legislation "To amend the
Central Intelligence Agency Act of 1949, as amended, and for other pur-
Intelligence Agency recommends its enactment.
The Bureau oLthe Budget has. advised that it has no objection to the
submission of this proposed legislation to the Congress, and the Central
provide certain benefits to CIA employees serving abroad and their families,
and to make certain technical changes in the existing law.
Section 1 of the proposed legislation contains three amendments to
the Central Intelligence Agency Act of 1949, relating to procurement author-
ities. The first of these is designed to provide this Agency with authority
identical to that of the Armed Services as to the circumstances under which
purchases and contracts may be made without advertising. Although the
volume of CIA purchases and contracts is negligible compared to that of
the Armed Services, we are confronted in general with all of the typical
situations with which the Services are faced in this field. A second pro-
posed amendment provides that Agency contracts in the research and
development field may extend over an initial term of not to exceed five
years, with a possible extension of an additional five year maximum period
if funds are available therefor. I have described to Committees of the
Congress with jurisdiction over CJA matters certain types of special proj-
ects of a unique and important nature which this Agency undertakes from
time to time in the.research and development field. In order to provide
necessary lead time in these projects, we feel we need the authority to
The purposes of this legislation are to provide for a limited amount
of additional flexibility in the procurement operations of this Agency, to
War Crimes Task Force review completed
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Section 3 of the proposed legislation increases from fifte t h
t
e Armed Forces and of the Foreign Service.
- --r----- -++___ .+.c Wprratiron o= bection 3b48 of the Revised Statutes (31
U.S.C. 529) will place CIA overseas personnel on a similar footing with
personnel of th
re ui accordance
with the laws or customs of certain foreign countries, and the inability to
provide them works a hardship on the individuals conr_er>p.rl rl,.* a
Section 4 of the proposed legislation is designed to permit advance
payments for such items as rent, where such payments a
en o
rtv,,
i
five the maximum number of retired military officers which may be err..
ployed by this Agency at any one time. This proposal is consistent with
a recommendation by the Clark Task Force of the Hoover Commission,
and is considered desirable. Although the Agency has been able to adhere
to the previous limit of fifteen retired officers without a serious loss of
efficiency, we feel that there have been cases where more qualified indi-
viduals for certain posts could have been obtained from the ranks of retired
military officers had the authority been available.
Section 5 of the proposed legislation is purely technical, and is in-
tended to correct a typographical error in the original Central Intelligence
'Agency Act of 1949
x'^p,, ~,Y. ~;gt ~
The not incremental cost to the Agency resulting from this proposed
legislation is estimated to be in the neighborhood of $80,000 annually. It
is contemplated that these costs can be readily, absorbed; within our normal.-
operating budget.
A, 1
~,.+. .: :.. ..i. a ~ ~e `~-` .. w .., u ~~ -.i ~~i.e~.:lE `'n~c}'"4 .~ k`~.' ~ t '?;~ _..w ~:..r.. '? - ~?.
s .. _ - ^h t,: r '? c -[~-'s` wR9 3 li:Y t a..
Rya x r `. .:;-t. y.. ,:.v _~., ,s.`;, a .,~nky'~.'..^a'. ?t ap -3 ti?~ 6r' s^ . ,.iM.
It is respectfully urged that the Congress, act favorably on this pro-
posed legislation during-the present Session.
.' :Sincerel
UKL
proved;Foj R4IeaseM20Q3/08/04:: CIA.-RP M6 1R 2g00I-
Director:
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CENTRAL INTELLIGENCE AGENCY
WASHINGTON 25. b. c.
? .)
Honorable Sam Rayburn
Speaker of the House
of Representatives
Washington 25, D. C.
Dear Mr. Speaker:
There is forwarded herewith a draft of legislation "To amens the
Central Intelligence Agency Act of 1949, as amended, and for other pur-
poses, " together with a sectional analysis of that legislation.
The Bureau of the Budget has advised that it has no objection to the
submission of this proposed legislation to the Congress, and the Central
Intelligence Agency recommends its enactment.
The purposes of this legislation are to provide for a limited amount
of additional flexibility in the procurement operations of this Agency, to
provide certain benefits to CIA employees serving abroad and their families,
and to make certain technical changes in the existing law.
Section 1 of the proposed legislation contains three amendments to the
Central Intelligence Agency Act of 1949, relating to procurement authorities.
The first of these is designed to provide this Agency with authority identical
to that of the Armed Services as to the circumstances under which purchases
and contracts may be made without advertising. Although the volume of CIA
purchases and contracts is negligible compared to that of the Armed Services,
we are confronted in general with all of the typical situations with which the
Services are faced in this field. A second proposed amendment provides
that Agency contracts in the research and development field may extend over
an initial term of not to exceed five years, with a possible extension of an
additional five year maximum period if funds are available therefor. I hav'-
described to Committees of the Congress with jurisdiction over CIA matters
certain types of special projects of a unique and important nature w"rich
Agency undertakes from time to time in the research and development field.
In order to provide necessary lead time in these projects, we feel we
nrra
the authority to contract over a period of years, in a manner substantial/
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Section 3 of the proposed legislation increases from fifteen to thiri -
five the maximum number of retired military officers which may be em-
ployed by this Agency at any one time. This proposal is consistent with a.
recommendation by the Clark Task Force of the Hoover Commission, anu
is considered desirable. Although the Agency has been able to adhere to
the previous limit of fifteen retired officers without a serious loss of
efficiency, we feel that there have been cases where more qualified indi-
viduals for certain posts could have been obtained from the ranks of retired
with personnel of the Armed Forces and of the Foreign Service.
Section 5 of the proposed legislation is purely technical, and is in-
provide them works a hardship on the individuals concerned. This pro-
with the laws or customs of certain foreign countries, and the inability to
Section 4 of the proposed legislation is designed to permit advance
payments for such items as rent, where such payments are in accordance
military officers had the authority been available.
posed exemption from the operation of Section 3648 of the Revised Statutes
(31 U.S. C. .529) will place CIA overseas personnel on a similar footing
.tended to correct a typographical error in the original Central Intellic'n -~
The-net incremental cost to the Agency resulting from this proposed
legislation is estimated to be in the neighborhood of $80, 000 annually. It
is contemplated that these costs can be readily absorbed within our normal
o
eratin
b
d
t
t r
p
g
u
ge
b. 7~
It isf respectfully urged that the Congress. act favorably on this pro-
osed legislation during the present Session.
toe ~,,r k ?? ! A s t a t. eta i,-~ x
inter. ely,}
hclosure
haii
Allen W. Dulle s
Director
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v~...__.._ -A'BILL".~
To amend the Central Intelligence Agency Act of 1949, as amended, and
for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled.,!
SECTION 1. Section 3 of the Act entitled the Central Intelligence
Agency Act of 1949, approved June 20, 1949, as amended (63 Stat. 208,
50 U.S.C. 4030 (hereinafter referred to as "such Act"), is amended
to read as follows;:
(a) In the performance of its functions, the Central
Intelligence Agency is authorized to exercise the authorities
contained in sections 2(c), 5, 6, 7. and 10 of the Armed Serrices,
Procurement Act of 1947, approved Feb. 19, 1948, as amended
(62 Stat. 21, 41 U.S.C. 151).
(b) Contracts of the Agency for services and use of
facilities for research or development may be for a term not
to exceed five years, and may be extended for an additional
period not to exceed five years, subject to the availability
of appropriations therefor.
(c) For purposes of this section, the term "agency head"
shall mean the Director and Deputy Director of Central Intel:Ligen`e
and the Deputy Directors of the Agency.
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(2) for rent in foreign countries for such period as
may be necessary to accord with local custom.
SECTION 5. Section 10(a)(1) of such Act is amended by inserting
"Chapter 171 of" immediately before "28 U.S.C."
12
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SECTIONAL ANALySIS OF A PROPOSED BILL TO
ANMD THE CM T. INTELLIGENCE AGENCY ACT
OF 191+9, AS AMEADED, AND FOR O PURPOSES
SECTION 1.
Under Section 3(a) of the Central Intelligence Agency Act of 1949
the Agency is authorized to exercise certain procurement authorities
contained in the Armed Services Procurement Act of 19117. The specific
sections of the Armed Services Procurement Act, the authorities of which
CIA was authorized to exercise, were incorporated by reference In
Section 3(a) of the CIA Act of 1949. Since passage of the CIA Act,
additional functions have been assigned to the Agency. ~L'his, and added
experience, indicate the need to exercise other authorities contained irn
the Armed Services Procurement Act of 19117.
Under Section 2(c) of the Procurement Act, the Armed Services may
negotiate purchases and contracts srithout advertising in sev.nto~!un listed
circumstances. The Agency is authorized by Section 3(a) of the M Act
to negotiate in ten of these circumstances. It is requested that the
remaining negotiation authorities of Section 2(c) be given this Agency.
This increase in Agency negotiation authorities, to make them the
same as those of the Armed Services, would be accomplished by modifying
Section 3(a) of the CIA Act to authorize the Agency to exercise all the
authorities contained in Section 2(c) of that Armed Services Procurement
Act.
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Particularly` of rent. Frequent exceptions have been made to this
provision of law; e.g., for payments made for the Bureau of Customs in
foreign countries (31 U.S.C. 529 b), for the enforcement of cus-.oms -I
narcotics laws (31 U.S.C. 529 f), for the Office of Scientific Research
and Development (31 U.S.C. 529 h), and for advance payments of Office
rent in foreign countries by the Bureau of Foreign and Domestic Commerce.
This statute is also specifically waived for the armed services, and the
Department of State has acquired an exception in its current Appropriation
Act (P.L. 133 of 7 July 1955).
SECT.TON 5?
This provision corrects a typographical error in Section 10(a)(1)
of
ntral Intelligence
Agency Act of 1949. The authority which was
intended to be granted by this clause was the authority to pay claims
under the Federal Tort Claims Act (Chapter 171 ), but the chapter number
was omitted from the final printed versions of the bill as
passed.
1
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