REDUCING TRANSACTIONAL COSTS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP91-00981R000100150004-5
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 20
• Document Creation Date: December 27, 2016
• Document Release Date: February 7, 2013
• Sequence Number: 4
• Publication Date: September 14, 1988
• Content Type: MEMO

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14 SEP 1986
MEMORANDUM FOR: Deputy Director for Administration
VIA: Executive Assistant to the DDA
FROM: John M. Ray
Director of Logistics
SUBJECT: Reducing Transactional Costs
1. Attached are action/status reports for each of the 17
transactional costs issues the Office of Logistics (OL) was
assigned to.respond to in September. Responses were collected
from the responsible components within OL as input to OL's
reply. Where suggestions regarding issues are to be adopted,
timetables for implementation are provided. Where suggestions
are not deemed to be acceptable for the Agency, reasons are
provided.
STAT 2_ If you have any questions,. please contact
STAT
STAT
Executive Officer/OL on extension
ohn M. Ray
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STAT
SUBJECT: Reducing Transactional Costs
EO/OI~ Iba (14 'Sept 88)
Distribution:
Orig - Addee
1 - IMSS/Official
1 - IMSS/Chrono
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ATTACHMENT
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ISSUE ACTION/STATUS
ti
Improve delivery of immediate priority The Office of Logistics (OL) feels that it may be
mail to customers. feasible to develop a reliable, controllable method
of moving and tracking time-critical material through
the use of OL resources, coupled with the Information
Service Center (ISC) and Registry (REG) network. As
conceived, the mechanism to accomplish the movement
of immediate/priority (I/P) material requires the
following:
Development of a means of distinguishing and
segregating I/P material from routine
material.
? Creation of two additional document
distribution runs (DDRs) serviced by two
dedicated, internal couriers. These DDRs
would be distinct and separate from the
routine courier runs currently provided to
customers.
? Providing I/P service to the I'SC and REG
network, only. This service would 'result in
visits to ISCs and'REGs four times per day,
in order to "guarantee" delivery of I/P
material within one workday, for material
originating from or destined for addressees
outside Headquarters Building, and delivery
of I/P material within four working hours,
for material originating from and des ni ed
for addressees inside Headquarters Building.
OL will complete a feasibility study on this
subject within 30 days. If deemed feasible, OL will
implement within, 90 days, which will allow for the
acquisition of needed equipment, the preparation of
procedures, and for the coordination of activities of
the various components involved.
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ISSUE ACTION/STATUS
Provide shuttle service to and from The Headquarters area does not have a parking
central commuting areas to alleviate problem and none is anticipated in the foreseeable
future parking crunch. future. Based upon OL's present staffing levels and
existing transportation requirements, additional.
service could be provided to outlying commuting areas
early in the morning from 0600-0730 hours. The
majority of shuttle runs do not start until 0730
hours and we would be able to provide this type of
service until that time when we would begin our
normal daily bus runs. Service in the. afternoon,
however, would be limited as OL personnel would still
be out on their regular runs. The best we could hope
for would be one. 37 passenger transit bus in the
afternoons unless the commuting areas were located
close to one of our existing shuttle routes.
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ISSUE ACTION/STATUS
Improve delivery of items to
destination; e.g. lost and misplaced
items, infrequent delivery runs.
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ACTION/STATUS
STAT Improve delivery of items to
destination; e.g. lost and misplaced
items, infrequent delivery runs. (cont)
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ISSUE ACTION/STATUS
Ensure supply rooms in outbuildings. are Surveys have been undertaken by the Office of
kept adequately stocked. Logistics (OL) to identify deficiencies in stocking
external building supply rooms. Included have been
onsite unannounced inspections and scheduled meetings
with Logistics Officers, Administrative Officers,
secretaries, and other component representatives.
Recently, service was increased to each building to
include two surveys for stock replenishment and
actual replenishment effected two days per week. In
the past, only one employee was handling this
requirement. With two employees there have been
minimal complaints from outlying buildings.
Additionally, a campaign has been launched to
advertise that assistance can be obtained from the
Headquarters Supply Room.
OL will also improve its service to supply room
customers via a reorganization that will.occur on
1 October 1988. Briefly, the responsibility for the
management of supply rooms, stock, inventories,
issues, etc., will be transferred from the Facilities
Management Division to the Supply Group, OL. It is
felt that this transfer of responsibility places the
supply room function in its proper organizational
niche and that significant improvements will be
apparent to customers almost immediately.
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ISSUE ACTION/STATUS
Reduce the burdensome procedures and The Fine Arts Commission (FAC), at each monthly
approval time required by the Fine Arts meeting, reviews proposed projects that affect the
Commission's regulations. appearance of public areas of Washington Metropolitan
Area facilities. A decision is normally made at the
same meeting. Occasionally the determination will be
delayed until the following month so members can
inspect the area to be changed. These requests
pertain to signs, colors, plants, exhibits, and some
physical structures.
Employees may perceive that the FAC controls
selection of furniture, carpet, and accessories. It
does not. These are controlled by federal regulation
and, in many cases, are regulated by Congress. The
Office of Logistics is charged with verification of
compliance concernin these rules. The regulations
are defined in and are
illustrated in several, frequently updated
publications of standard, approved furniture and
furnishings. All items shown in these publications
are manufactured to Government standards for safety,
economy, comfort, durability, uniformity of style,
and practicality.
Review and approval of those orders which are in
compliance with the standards are acted upon
immediately and forwarded for processing in the next
courier run. Orders that have errors or that do not
comply with standards must be delayed until they are
made acceptable for processing. FAC is of the
opinion that a more responsive action on requests'is
unattainable.
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ISSUE ACTION/STATUS
Improve the quality of janitorial Janitorial Services in the Ames Building are
services in Ames Building. provided by Dominion Management, the Building
Manager, who subcontracts for these services. These
services are monitored by the Office of Logistics.
The restrooms, elevators, lobbies, and hallways have
been found to be exceptionally clean. Improvement is
needed, however, in the vaulted areas. The vaulted
rooms must be cleaned during the regular work day
hours to allow access for cleaners. The amount of
vaulted space has more than doubled in FY 88 and
management is currently increasing the daytime
cleaning force to handle the additional workload. OL
expects a noticeable improvement in this building's
vaulted areas and will monitor the situation
carefully in the future to ensure that our
expectations are in fact fulfilled.
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ISSUE ACTION/STATUS
Expand the use of Form 2420 to include The Office of Logistics (OL) is actively pursuing
procurement of goods. a practical means to consolidate procurement request
forms 2420 and 88. The goal is to have the new form
in use by 1 October 1988. A working group has been
established with representatives from several
components in OL and a component logistics officer.
The working ,.group has reviewed the form 88
(Requisition for Material) and the Form 2420 (Request
for Procurement Services) to determine if the forms
could be consolidated and made more user friendly.
After several meetings and lengthy discussions, the
working group has developed a consolidated form. The
proposed form will be sent to all groups, divisions,
and staffs in OL for review and comment. It is
anticipated that a final decision will be made by 1
October 1988 regarding the feasibility of the new
form. This would be an interim solution since this
would occur electronically when the Commercial
Logistics Applications System is fully operational in
October 1989.. A menu screen will be utilized to
request either goods or services and, hopefully, for
inventory issues as well.
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 STAT
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ISSUE ACTION/STATUS
Raise the dollar threshold required for The dollar threshold for ACRB review was
Contract Review Board action. increased via Procurement Note 140, Revision 7, from
29 July 1988.
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ISSUE ACTION/STATUS
Institute procedures for notifying When a contractor encounters difficulty in
originating offices (of Form 88s) meeting the delivery schedule or date, the contractor
expeditiously when items will not be is required to notify the Office of Logistics (OL)
received by.required delivery dates. contracting officer in writing. It then becomes the
contracting officer's responsibility to notify the
appropriate officers of failure to meet the delivery
date. OL has emphasized to its contracting officers
that this procedure should be followed when
possible. Inasmuch as contracting officers are
responsible for as many as 100 contracts and more,
the futility of applying this procedure in every case
becomes apparent.
Additionally, procedures are available from the
Materiel Support Branch, Supply Group, OL
(MSB/SG/OL), which enable customers to query the
Inventory Control System database to determine the
status of their requisitions. One of the objectives
now being developed is to issue retrieval passwords
to customers and instructions for querying the
Inventory Control System. The MSB will notify
requisitioners of all items being issued from stock
which will not meet the required delivery dates at
the time requisitions are edited. Subsequently, the
customer will be able to query the system or contact
the MSB for status information. The customer may
also contact them in order to expedite the order.
The Data Management Branch, Supply Group, OL,
encourages customers to use the query function. OL
officers are available to train all customers,
interested in this procedure.
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ACTION/STATUS
The Office of Logistics intended to complete an
appropriate response to these issues in this
reporting period after conducting a survey on the
subject. Unfortunately, we have had to curtail this
effort, which involves procurement activity, due to
the heavy workload we are experiencing in end-of-year
procurement actions. OL will complete its study and
report on its findings in the next period.
Increase the contracting delegation of
STAT authority to offices from
STAT
STAT Increase from I I the
office limit per line item not requiring
Agency Contract Group's approval.
STAT Increase the amount of office
funds and office authority to make local
procurements to at least double the
present level.
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 STAT
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ISSUE ACTION/STATUS
Automate forms required to initiate Automation of forms can be responded to in two
various actions (procurement; repair, ways:
etc.) and allow for on-line coordination.
1. Automation in terms of creating
electronic versions of forms: The Office of
Information Technology has begun'a project with a
goal to capture Agency Standard forms in an
electronic format from a control design station,
and electronically disseminate them through the
mainframe computer to decentralized stations
where they can be accessed on a computer
terminal, filled out and "demand" printed on a
laser printer. This will enable forms to be
revised in a more timely fashion, and will
eliminate the need for formal printing and
stocking of forms in supply rooms. It will also
prevent stocking outdated forms. It will not
automate the approval cycle. The Office of
Logistics (OL) has volunteered to. be the initial
decentralized test bed site for this project, and
it should be implemented on a test basis during
FY 89.
2. Automation in terms of electronic
approval and routing: For some forms this has
already been instituted via AIM (Form 73, Visitor
Request Form, etc.). Other forms that require a
minimum of approvals are candidates for this
solution, such as PTI forms. However, forms that
require multiple approvals, such as the Form 88
or 2420., are more difficult to automate in. the
Wang due to the reluctance of managers to accept
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ISSUE ACTION/STATUS
Automate forms required to initiate electronic signatures or to utilize terminals to
various. actions (procurement; repair, provide the required electronic signatures that
etc.) and allow for on-line coordination. only they can provide. OL and the Office of
(cont) Finance have planned to automate the approval of
requests for goods and services and inventory
issues through the BARS/CLAS system when it is
fully operational in FY91. The software will
queue these requests to the appropriate officials
for financial and logistical approvals in the
proper sequence. However, special approvals will
continue to be obtained in hard copy for items
such as ordnance.
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ISSUE ACTION/STATUS
Authorize office directors to approve up Personal property claims are settled under the
to $1,000 in claims. authority of the Military Personnel and Civilian
Employees' Claims Act of 1964, as amended, which is
implemented in the Agency
Per the Legal Advisor, HCRB, the Government has
strict statutes governing the settlement of claims
requiring legal knowledge only lawyers or claims
experts can provide. To protect office directors
from violating Federal law by approving a claim that
is not allowable under the law, this suggestion
should not be adopted.
The adjudication of a claim, which can be very
complex in nature regardless of its monetary value,
requires a working knowledge of the law, past Agency
policies and precedent, and a consistency in arriving
at the final determination to provide a fair and
equitable settlement to the claimant and the U.S.G.
These judgments and technical yardsticks can best
be applied by professionals who work with the subject
on a daily basis. Each claim must be researched to
determine such considerations as:.
? Is the employee an eligible claimant under
the Act (staff employee, staff agent,
contract employee, detailee, survivor(s) of
employee, etc.)? Independent Contractors are
not covered under the Claims Act.
iR
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ISSUE ACTION/STATUS
Authorize office directors to approve up ? Has the claim been filed with the Agency or
to $1,000 in claims. (cont) other U.S.G. office within the mandatory
2-year timeframe required by law (2-year
_ timeframe cannot be waived)?
Is the loss considered incident to service
(lost,. damaged, or destroyed during
authorized Gov't. service)?
? Is there negligence (any degree) present on
the claimant's part, his agent, or his
employee which would bar payment under the
Claims Act?
Is there enough credible evidence to support
the claim? Evidence includes details of the
circumstances of loss including signed/dated
inventories noting loss/damage, written
repair estimates, appraisals, etc. Police
reports are needed for POV accidents. Police
reports are also needed for thefts along with
details of the theft noting what extra
precautions were taken to protect the
item(s), particularly in loss of cash and
other small easily pilferable items such as
jewelry,-watches, etc. Was there positive
evidence of theft or was the loss an
unobserved mysterious disappearance?
Thefts/losses assessed as mysterious
disappearances or having no positive evidence
of a theft normally are not allowable under
the Claims Act.
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