FUNDING FOR THE AGENCY COPIER MANAGEMENT PROGRAM

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP91-01355R000300140003-9
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 10
• Document Creation Date: December 23, 2016
• Document Release Date: June 25, 2013
• Sequence Number: 3
• Publication Date: May 24, 1988
• Content Type: MEMO

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Declassified in Part - Sanitized Copy Approved for Release.2013/06/25 : CIA-RDP91-01355R000300140003-9
ROUTING" AND RECORD SHEET
SUBJECT: Funding for the Agency Copier Management Program
FROM:
TO:
Extention
* Date *
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DS&T/PRS/P&B
6E60 HQS
(Officer designation)
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9.
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SECRET:
NO: DS&T-471-88 25X1
DATE: 24 May 1988
Comments:
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DS&T-471-88
24 May 1988
MEMORANDUM FOR?: Special Assistant/OD&E
Executive Officer/ORD
Chief, Management and Coordination Staff/OTS
Chi,ef, Program Analysis Staff/OSO
Chief, Executive and Planning Staff/FBIS
Executive Officer/NPIC
Director, Management and Planning/OSP
FROM:
SUBJECT:
Chief, Program and Budget/DS&T
Funding for the Agency Copier Management Program
1. In March 1988, the Office of Logistics presented to the Executive
Director a study of the funding history of the Agency's copier management
program. This study indicated that the budget growth for the copier program
had not kept pace with the Agency's requirements, resulting in a backlog of
requests that cannot be satisfied without additional funding. The Office of
Logistics recommended that each Directorate be assessed according to existing
and projected requests for the remainder of FY 1988. A copy of the study is
attached for your information.
2. Also attached is the Office of Logistic's cost projection for active
requests for upgrades to existing copiers and/or new copiers and future
requests. The CURRENT COSTS column represents the monthly cost that is
presently funded in OL's budget for copier upgrades, the PROJECTED COSTS
column represents the projected monthly cost for existing and new copiers.
Taking the difference between the current monthly and projected cost for the
remaining four months of the fiscal year, the Office of Logistics proposes
that $36,316.00 is required from the S&T to fund existing requests and by
analyzing historical data an additional $11,344.00 may be required to cover
future requests for the fiscal year (June through September).
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StA-Kc
Declassified in Part - Sanitized Copy Approved for Release 2013/06/25: CIA-RDP91-01355R000300140003-9
SUBJECT: Funding for the Agency Copier Management Program
Distribution:
1 - each addressee
1 - each DS&T/B0
1 - DS&T/PRS/P&B
25X1 1 - DS&T/P&B
1 - DS&T/PRS rono
25X1 1 - DS&T/L0q
1 - DS&T/Registry,
OS&T/PRS/P&B
3
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7 March 1988
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MEMORANDUM FOR: Executive Director
VIA: Deputy Director for Administration
Comptroller
FROM:
SUBJECT:
Director OE Logistics
?
1-k0L-125X1
Funding 'for the Agency Copier Management Program
1. Attached is a copy of a staff study prepared, by the Printing
and Photography Division (MD), OL, detailing the funding history
of the Agency Copier Management Program (CMP). This study indicates
that the annual budget growth for CMP has not kept pace with the
growth rate of Agency copier requirements, resulting in a backlog of
legitimate copier requests that cannot.be satisfied without an
adjustment to the FY-1988 CMP budget base. The study also contains
a recommendation for the establishment of an annual program,
I b:?;1"r ingl
:: trrplaZc?;ir!:7rUa service.
which industry guidelines etefultfe '
expectancy of copiers.
2. The data presented in this study and the concerns raised are
valid. As of 1 March 1988, the FY-1988 CMP budget of $2.6 million
is 96 percent obligated, leaving only $100,000 to satisfy an
existing backlog of 130 valid copier requests. This amount is
clearly inadequate. It must be noted that we are less than six
months into the current fiscal year, and additional requests will be,
forthcoming. A correction to the CMS budget must be made
immediately, or it will cease to be an effective vehicle for
management and acquisition of.copiers for the Agency.
I3. It is recommended that the FY 1988 base budget for Copier
Management be increased by $1.2 million in order to satisfy existing
copier requests, projected copier requests for the remainder of
FY 1988, and initiate a copier replacement program. This funding
should be obtained by assessing each directorate an amount to fund
for both its existing and projected requests for FY 1988 and 'an
additional amount to establish a replacement program proportional to
that directorate's current CMP budget utilization. The total amount
required from each directorate is as follows: DO - $246,155;
DS&T - $293,885; DA - $252,280; DI - $311,440; DCI - $96,240. These
funds, totaling $1.2 million, should be transferred to the CMP base
budget, FAN 1144.
All Portions Secret
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U;
OL 11015-88
1
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SUBJECT: Funding for the Agency Copier Management Program
4. It iS hoped that this
in a timely manner, as CMP is
'requests.
Attachment
CONCUR:
;
Dhputy u
additional funding can be accomplished
currently unable to fill any new
18 OR 1988
nistration Date
Comptroller
APPROVED:
Executive Director
OL/P&PD
(7 Mar 88)
Date
Date
Distribution:
Orig - Addressee, w/att (Return original to OL/P&PD Official)
1 - Executive Registry, w/att
A-1.--C-Eomptrol1er, w/att
2 - DDA, w/att
1 - OL Files, w/att
1 - OL/P&PD Chrono, w/att
2
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I. Purpose of This Study
This study was undertaken at the request of the Director of
Logistics to detail the history of funding for the Agency Copier
Management Program (CMP).
TI. Statement of the Problem
Since its inception in 1981, the CMP has been funded at levels
sufficient to satisfy only the existing contracts and provide a
small amount of growth in new copier placements. Also, there has
been no funds established to cover the cost of replacing any of the
older, worn-out,ccopiers. Prior to FY-86; the CMP existed as a line
item in the office of Logistics, Peinting and Photography Division's
CtOL/P&PD) budget. Shortfalls in the CMP were covered by funds from
he P&PD budget. In F1-1986, CMP was given its own FAN and
operating budget. Since this time, a'backlog of over 130 copier
requests has developed due to an imbalance between CMP's annual
budget and the Agency's copier requirements.
III. Discussion
A. The CMP was established in F1-81, and in FY-82 its first
budget was funded in P&PD's FAN 1141. These funds came from
contributions from each Directorate based on each Directorate's
FY-81 copier expenditures. At this time it was determined by the
Office of the Comptroller that because of unpredictable changes in
1 copier expenditures resulting from this new program, adjustments
would have to be made to the CMP budget as needed. The ambition of
a copier management program such as this is to reduce unnecessary
. spending by placing the management of the acquisition and
maintenance of the Agency's copier requirements under one office.
Because of the unpredictable changes in both budgetary requirements
and copier requirements, the budget for the CMP is now in need of an
adjustment.
B. Because of the similarities between copier/reprographic and
large-scale printing technologies, P&PD was charged with the
management of this program and its corresponding budget. The CMP's
initial budget in F1-82 came from funding obtained through
contributions from each Directorate amounting to $1.5 million.
Thereafter, to insure that the CMP would have sole authority for all
copier placements, funding came from P&PD's budget. During the
period 1982 through 1986 funding continued to come through P&PD's
FAN on an ".as needed" basis. While this is actually "funding to
meet the demand", it sufficed during the early program years, at a
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time when the program was seeking to streamline and reorganize
existing decentralized copier acquisition procedures. At the same
time, overall Agency expansion created unprecedented growth levels
in copier requirements. As a consequence, no base line funding or
. replacement funding costs were firmly established. Thus, when the
'budget for CMP was separated from P&PD and CMP's FAN 1144 was
/ established in FY-86, the funding was based on dollar amounts that
V P&PD had allocated to this function which had been based on minimal
funds needed to accommodate existing contracts. This placed the CMP
baseline funds at an absolute minimum level making it insufficient
to meet any additional growth in Agency copier requirements. During
FY-86, the financial constraints imposed,by*.the Graham-Rudman-
Hollings bill meant that additional fundcng would not be available
to increase the CMP budget base, and a freeze was placed on the
acquisition of copiers. As a result of the freeze, CMP was faced
with a backlog of about 70 requests for copiers when FY-87 began.
The FY-87 CMP budget of $2.5 million was again sufficient to fund
existing contracts and very few additional requests that year, but
did not appreciably address the backlog. In fact, new copier
requests received during FY-87 increased the backlog to about 130
requests at the beginning of FY-88.
C. In order to address this backlog of over 130 copier
requests, an increase of approximately $500,000 will be required.
The number of active requests for copiers, and the associated
estimated cost to fill these requests is listed, below by
Directorate:
NUMBER OF
DIRECTORATE REQUESTS COSTS
DO 27 $102,625
DS6T 33 $122,625
DA 28 $105,250
DI . 35 $129,500
DCI 11 $ 40,000
TOTAL PENDING REQUESTS 134 $500,000
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D. Based on the six-year history of the CMP, it is projected
that an additional 61 requests will be received in FY-88 requiring
additional funding in the amount of $300,000.00. These projections
are presented below:
NUMBER OF
PROJECTED
DIRECTORATE REQUESTS
DO,
12
DS&T
15
DA
13
DI
16
DCI
5
\
Total Projected FY-88 Costs
PROJECTED
COSTS
$61,500
$73/500.
$63,000
$78,000
$24,000
$300,000
E. Yet to be addressed in the CMP budget is the need for an
ongoing equi?mentreent?ro?r-i. A copier replacement program
should tr-criUbie-ntartedabouttive years after the initiation of
the CMP, since the industry guideline for the life of a copier is
estimated at five years. At th end of FY-87 the Agency copier
population exceeded 500. Of these copiers 58 are well over five
years old and have out-lived their usefulness to the Agency. By the
end of FY-88 there will be an additional 138 copiers, or a total of
196 copiers that will be at least five years old and ready for
replacement. This represents 40% of the Agency's fleet of copiers
and suggests that 20% of the fleet, or approximately100 copiers,
should be replaced annually. At today's rate for rental and
maintenance charges, an average of $5,000 per copier would cover the
cost of replacement. An additional $500,000 per year will be
required beginning in F1-88 in order to initiate a replacement
program. Once a program such as this is initiated, it is
anticipated that the copier population growth will stabilize due to
a continual injection of new copiers upgrading the old out-dated
copiers. Funding for a replacement program could be achieved by
assessing directorates proportionally for their share of the cost of
needed copiers as was done when the CMP was initially established.
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Each Directorate's share in supporting this program is listed below.
The percentages indicated are based on each Directorate's percentage
of CMP budget use.
C.
DIRECTORATE
DO
DS&T
DA,
DI
DCI
IV. Recommendation
AVG PERCENTAGE
REPLACEMENT COST
20.5%
$102,500
24.5%
$122,500
21.0%
$105,000
26.06
$130,000
8.0%
$ 40,000
$500,000
Since consolidation in 1981, the CMP has been a viable and
valuable program, saving considerable money and duplication of
effort in copier acquisitions and support. It has been a cost
effective and efficient program for maintaining the Agency's fleet
of copiers. Benefits derived from consolidation include the
reduction of the average cost per copier by approximately $2500.00,
and the reduction of the number -Of copier related contracts by
nearly 800%. Prior to FY-81 copier related contracts numbered over
250. Due to consolidation, this number has been reduced to about 30
in FY-1988, saving many man-hours in administering,
contract-writing,-and negotiating. However, because of the high
rate of growth in the Agency and the corresponding increase in
copier requirements, the annual budget allocated to the CMP is
grossly under-funded. The CMP budget for FY-88 is set at $2.6
million. This amount will barely support the cost of maintaining
the existing contracts and provides minimal funding ($100,000.00)
for new copiers. Of the existing 134 outstanding requests, only 20
can be addressed with the remaining $100,000. In order to properly
manage this Agency's requirement for office copying needs, it is
estimated that an adjustment of 1.2 million dollars is required for ?
CMP's budget for FY-88 and this amount should be included in the
base each year. Of this amount $700,000 would fund for existing
'requirements ($500,000 for pending requests, $300,000 for projected
requests less $100,000 FY-88 budget increase), and $500,000 would be
utilized for the first year's funding of an ongoing Agency copier
replacement program. Initially, funds should be obtained by
assessing each Directorate as indicated in this report until the CMP
can adjust its budget base in FY 91.
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