INTERM REPORT OF THE NATIONAL ACADEMY OF PUBLIC ADMINISTRATION PANEL

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90-00530R000100010002-3
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 24
• Document Creation Date: December 23, 2016
• Document Release Date: February 22, 2013
• Sequence Number: 2
• Publication Date: May 1, 1988
• Content Type: REPORT

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6-
/NAPA
1 National Academy of Public Administration
Chartered by Congress
INTERIM REPORT
OF THE NATIONAL ACADEMY OF PUBLIC ADMINISTRATION PANEL
FOR THE
STUDY OF INTELLIGENCE PERSONNEL SYSTEMS
MAY 1, 1988
1120 G Street, N.W., Suite 540 Washington fl C lnnn
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INTERIM REPORT
STUDY OF THE INTELLIGENCE PERSONNEL SYSTEMS
Organizational Status
As required in the Intelligence Authorization Act for
Fiscal Year 1988 (Title VII, Section 701), the Director of
Central Intelligence contracted with the National Academy of
Public Administration (NAPA) for a comprehensive review and
comparative analysis of the civilian personnel management and,
compensation systems of the Intelligence Community (IC). The
Academy has convened a Panel of public and private sector
officials (Attachment A), some of whom have held seni r
intelligence posts, to assess the current situation and
recommend any legislative or regulatory changes deemed needed
to improve the effectiveness of IC personnel systems.
The Panel is assisted by a project staff which develops
options and recommendations for the Panel's review. The staff
is composed of former intelligence agency employees, experts in
federal human resource management issues and experienced
analysts. The combination of diversity and experience will
permit critical analysis within a knowledgeable environment.
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As specified in Section 701(e), the Director of the
Intelligence- Community Staff has provided the requested support
and access to necessary information. Panel members and project
staff have been provided security clearances. Secured office
space was provided. To facilitate.access and coordination, the
Intelligence Community staff established a Study Steering Group
of senior representatives of the personnel functions from each
intelligence organization and this group has been meeting every
week to facilitate the work of the project.
The contract for the study was signed February 17,
1988. Pertinent background papers leading to the contract
are: ) the Terms of Reference generated by the Intelligence
Community, dated January 19, 1988; and b) the National Academy
of Public Administration's proposal, dated February 12, 1988.
Both are included under Attachment B.
Agency Initiatives
One of the objectives of the two interim reports -- this
one and the one on August 1, 1988 -- is for the Panel to
address proposed changes to personnel management and
compensation systems that intelligence organizations believe
are important to implement before the overall study is
completed.
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All of the agencies were asked if they had proposals
they wanted the Panel to evaluate in this context. The Central
Intelligence Agency (CIA) identified the concept of a flexible
benefits program as a change they would like the Panel to
address. Under it, staff will have more flexibility to select
benefits, paying for them with the government's contribution
supplemented by employee contributions. A report on this
initiative, with Panel recommendations, will be provided as
soon as the analysis and Panel review can be completed.
It is possible the Panel may examine and make
recommendations on NSA's proposals for a flexibile pay system
and for a bonus program before the Panel's January 1989 report.
The CIA has a number of other changes that they want to
undertake which they believe are not significant and do not
have Community-wide implications. The project staff has been
briefed on them and will discuss them with the staffs of the
Senate and House Intelligence Committees and the Panel Chair
before advising CIA whether or not to proceed.
Development of the Baseline Comparison
Prior, to beginning detailed field work, the project
staff requested comparable personnel-related data from each
agency. The information was organized as follows:
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Organization of Agency
Legal Basis for Agency Personnel Programs
Changes in Personnel Programs since 1978
Major Issues/Problems in the Agency
Personnel Program
Changes Considered to be Needed in Controlling
Personnel Law and/or Regulation
Significant Changes Considered Needed in Personnel
Program and Which can be Made within Existing
Authorities but are Being Delayed by the 1988
Appropriation Act Conference Report Language
Experience in Recruiting and Retaining People
with Critical Skills
Addressing the Future Workforce Needs of the Agency
Overview of Current Personnel Policies and Practices
Competition between IC Agencies in Personnel
Programs
To further familiarize themselves with each agency's
personnel system and to become better acquainted with
cross-cutting issues, the project staff held an intensive
two-day meeting with representatives of the IC Staff, the
Central Intelligence Agency (CIA), the National Security Agency
(NSA), the Defense Intelligence Agency (DIA), Military
Intelligence, the Federal Bureau of Investigation (FBI) and the
State Department's Bureau of Intelligence and Research (INR).
This off-site session provided the requisite background for
project staff to develop separate profiles and issue statements
for each of the agencies.
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After analyzing the information on each agency, project
staff developed a matrix which compared like data, with
emphasis on the history of changes to the different personnel
systems and on changes now perceived needed. This matrix will
be further refined throughout the study, and will provide the
framework for the comparative analysis requested by the
Intelligence Committees of the Congress.
Using this information, the NAPA Panel held its first
meeting on April 1, 1988. During that session, its members met
with staff of the House Permanent Select Committee on
Intelligence and the Senate Select Committee on Intelligence
and, separately, with senior leaders of the Intelligence
Community agencies. Discussion with Committee staff provided
background on congressional rationale for the study and
expectations for results. Senior agency representatives
further discussed employment trends and impediments the current
personnel systems impose on effective operations.
Early Observations
The IC personnel systems range from close adherence to
Title 5 of the U.S. Code, relating to personnel and overseen by
the Office of Personnel Management, to more flexible systems
such as those of CIA and DIA. A major difference between
staffs of intelligence agencies and those of other government
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entities is the security requirements: the ensuing lifestyle
limitations while employed and the constraints placed on
employees once they leave employment with an intelligence
organization. This is often cited as the major reason IC
agencies believe their staffs should be compensated
differently than other civil servants.
There is an increasing demand by executive branch
agencies for greater flexibility in managing their human
resources. The climate for change in federal personnel
management has contributed and will continue to contribute to
the intelligence agencies having more flexible systems. The
Office of Personnel Management, through delegation and
deregulation, and the Congress, through specific demonstration
authorities, like those recently given the National Bureau of
Standards, are responding to these demands. These are largely
driven by the mission requirements of these agencies.
Central to this study will be the Panel's assessment of
the "uniqueness" of the missions of the intelligence agencies
and the implied need for even greater flexibility to support
them. To some extent, this flexibility justification is
already reflected in authorities granted to the various
intelligence, agencies. However, these authorities need to be
assessed in terms of the consistency of their application among
intelligence agencies and between the intelligence agencies and
the rest of government.
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In examining staffing patterns and vacancy rates
available to- date, the Panel does not see clear patterns of
staff shortages in the critical skill areas of engineering,
computer science, languages or mathematics. What cannot yet be
determined is whether the quality of candidates now recruited
is as high as that of the past, or whether the more attractive
private sector salaries and benefits are attracting the best
recent graduates or most talented current employees. Because
the IC agencies report little long-range workforce planning, it
is not clear whether staff shortages will be a more critical
problem in the next 10 years. Further investigation will be
conducted in this area.
STAT
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Issues to be Analyzed
The Panel will examine the issues outlined below in the
context of the existing missions of the IC agencies. The
Panel's will consider the strategic trends in the intelligence
function and the economic, social and demographic trends in
U.S. society.
However, given the
future missions, emphasis will be
uncertainty in projecting
on suggesting changes that
would permit agencies to design systems sufficiently flexible
to meet a wide range of operating circumstances and changing
needs.
The Panel concluded that the primary areas of
investigation will be total compensation, training and career
development, staffing, equal employment opportunity, and future
human resources management (HRM) needs of the IC agencies.
These areas will be examined in the context of the broad
issues stated in the Authorization Act and the contract:
whether the present and planned HRM systems will be able to
attract and retain the highest quality personnel; whether there
is a need to significantly alter HRM systems to meet future
change; and whether there are significant differences in the
HRM problems confronting the intelligence community agencies in
contrast to other federal agencies and in contrast to each
other.
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There will be several lines of inquiry for each area:
1. Total Compensation
--Two aspects on pay: the impact of the pay cap
and the need for increased agency flexibility in the use of the
pay system within cap limits.
--Two aspects on benefits: to what degree the
nature of intelligence Work justifies benefits enhancement and
to what degree the intelligence agencies need increased
flexibility in using benefits to better meet the needs of a
changing workforce.
--Compensation and benefits comparability for
staff in overseas assignments, including a comparison with the
Foreign Service, and a comparison of compensation practices in
high cost of living areas within the United States.
( --Specific pay and benefit issues -- cited in the
contract and/or developed in the course of the study -- which
affect the ability of the intelligence community agencies to
compete with the private sector and with other federal agencies
for top quality personnel.
--Comparative data on the costs of federal staff
as compared to contract staff.
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--The dual compensation provision for retired
military officers as an impediment to recruitment for positions
that require specialized military intelligence experience.
2. Career Development and Training
--Career development programs: how they support
current and projected staffing and skill needs of the agencies.
--Training and retraining programs in the agencies
and how they are linked to improving job performance and
meeting current and future skill needs.
--Adequacy of resources for training and career
development programs.
--Use of workforce and succession planning
programs to define and guide staffing, training and career
development program needs of the agencies.
3. Staffing
--Current and projected skill shortage and
retention problems which threaten accomplishment of agency
' missions.
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--The impact of the more stringent personnel
security requirements of the IC agencies on the ability of the
agencies to compete in the labor market. Included here will be
whether the length of time between an offer of employment and
entry on duty causes some good candidates to accept other
positions.
--Projections of agency staffing needs from the
current staff base. The impact of congressional personnel
authorizations for the IC agencies and the effect of
congressional action on pay and benefits will be assessed.
--Possible means of evaluating the quality of new
staff being employed and retained now and in the future.
4. Equal Employment Opportunity
profile.
--Analysis of each agency's equal employment
--What each agency is doing to enhance the
representation of female and minority staff in the organization.
5. ,Organizational Issues
--The role of the DCI in providing guidance and
direction to the intelligence community agencies' HRM programs
and for performing an on-going oversight of HRM.
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The Panel also considered examining the potential impact
of wartime operations on those intelligence functions heavily
dependent on civilian personnel. While recognizing the
importance of this issue, the Panel believed it to be beyond
the scope of the study envisioned in the Authorization Act.
The study will be directed primarily to the CIA, NSA,
DIA, and FBI. Redesign of the civilian personnel systems of
the military intelligence agencies is underway, and is not
scheduled for implementation until October 1988. The Panel's
findings and recommendations should be useful in assessing
these changes. Study of the State INR activity will be
limited, given its size and the fact that it is so integrated
into the regular Foreign Service and civil service personnel
systems of that large Department.
Schedule for Studies
The Panel's work is organized to reflect the interim and
final reporting dates specified in the Authorization Act.
Between May 1 and August 1, the Panel will review issues
associated with staffing, equal employment opportunity, career
development and training, and will complete a baseline compari-
son of the agencies personnel systems. The August 1 report
will have findings and tentative recommendations in these areas.
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By early October 1988, the Panel expects to complete its
work on total compensation and organizational issues. It will
meet to discuss these issues and the overall thrusts of the
final report. By early November, the project staff will
prepare the initial draft of the January 1989 report, and the
Panel will meet to review it. Thus, by December 1988, the
final report should be nearing completion.
Attachment A: Panel Biographies
Attachment B: Terms of Reference and NAPA Proposal
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NAPA PANEL FOR INTELLIGENCE
COMMUNITY PERSONNEL STUDY
PHILIP ODEEN* - PANEL CHAIR: Regional Managing Partner, Coopers
and Lybrand. Served as Vice President for Wilson Sporting Goods,
Co.; Director of Program Analysis, National Security Council and
Principal Deputy Assistant Secretary of Defense for Systems
Analysis. Is Chair of the Washington World Affairs Council and
Subcommittee Chair on President's Commission on Military
Compensation. Assisted Frank Carlucci in transition to becoming
National Security Council Advisor.
JULIUS BECTON - Director, Federal Emergency Management Agency,
retired as a Lieutenant General of the U.S. Army in 1983 from the
position of Deputy Commanding General of the Army's Training and
Doctrine Command. He had been Commander of the 7th Corps in
Germany and of the 1st Cavalry in Fort Hood, Texas earlier in his
career.
JAMES COLVARD* - Assistant Director for Tactical Systems, Applied
Physics Laboratory at John Hopkins Universtiy. He has served as
Deputy Director, Office of Personnel Management; Deputy Chief of
Naval Materiel; Technical Director, Naval Weapons Laboratory; and
Technical Director, Naval Surface Weapons Center.
BOBBY INMAN* - Chairman and CEO, Westmark Systems, Inc. Former
Chairman and CEO of Microelectronics and Computer Technology
Corporation. Served as Deputy Director of Central Intelligence
and Director of the National Security Agency.
CAROL LAISE* - Ambassador, Retired. Served as Assistant Secretary
of State for Public Affairs, Director General of the Foreign
Service, Ambassador to Nepal, and Director of the Division of
South Asian Affairs. Member of the Council on Foreign Relations.
FRED MEUTER - Manager, Executive Compensation, Xerox Corporation.
Twenty-nine years of broad-based compensation experience with
major corporations, e.g. TRW and 3M. Combat Intelligence Officer,
U.S. Air Force during Korean conflict. FBI Special Agent for six
years.
WILLIAM MILLER* - President, American Committee on U.S. Soviet
Relations. Has served as Associate Dean and Adjunct Professor,
Fletcher School of Law and Diplomacy, Tufts University; Staff
Director, Senate Select Committee on Intelligence; Special
Assistant to Senator John Sherman Cooper of Kentucky; and as a
Foreign Service Officer in Washington and Iran.
*Academy Members
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.January 20, 1988 Attachment B
Study Of Intelligence Personnel Systems
Terms of Reference
Background
The Intelligence Authorization Act for Fiscal Year 1988 (Title VII,
Section 701) requires the Director of Central Intelligence to contract with
the National Academy of Public Administration (NAPA) for a comprehensive
review and comparative analysis of the civilian personnel management and
compensation systems of the Intelligence Community. The analysis is to
include an assessment of the adequacy of existing personnel systems to support
the missions of the various intelligence organizations. NAPA is also directed
to make recommendations for additional legislation and regulatory or other
changes that are deemed advisable to improve the effectiveness of the separate
systems.
Scope and Emphasis
For the purpose of the study, the "Intelligence Community" will be CIA,
NSA, DIA, State/INR, FBI/FCI, and the intelligence elements of the military
services.
The study is intended to be an objective, classified review of the
Intelligence Community's personnel management and compensation systems. The
aim is to provide a baseline understanding of the effect of these systems on
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the ability of intelligence organizations to perform current and future
missions. In carrying out the study, NAPA will examine issues and programs
bearing on recruitment, retention, and effective management of employees.
Attention should be paid to the consequences of pay and evaluation aspects of
personnel systems and to programs related to needs for certain critical skills
and occupations. Career development and employee support programs should also
be examined, as should infrastructure support for personnel management. The
interim and final reports should also provide NAPA's recommendations regarding
proposed and potential legislation affecting the intelligence personnel
systems.
Broad Objectives
The study should achieve the following broad objectives:
o An examination of the need for significant change in existing
Intelligence Community human resource management systems implied in
current economic, social, and demographic trends.
o An examination of present and planned Intelligence Community
personnel systems to ascertain if they will be able to attract and
retain the highest quality personnel through the 1990s, including
identification and specification of necessary improvements and
required legislative proposals.
A comparison of Intelligence Community personnel systems with the
federal civil service, including identification and analysis of
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personnel issues facing the Intelligence Community that differ
significantly from those facing the federal government in general.
o A comparison of the personnel needs and requirements facing the
individual members of the Intelligence Community, with due regard for
the differing missions, risks, job requirements and environments of
the agencies, departments, and offices involved.
? Recommendations, if warranted, for legislative, regulative, or other
changes in personnel and/or compensation programs based on the unique
nature of intelligence activities.
Areas of Inquiry
In the course of meeting the broad objectives, the study should address
? the following specific areas:
o Competition Intelligence Community competition for human resources
is primarily with the private sector. The total compensation package
(pay, benefits, and awards) should be evaluated to determine what
needs to be done to make the Intelligence Community competitive in
the 1990s in the private sector market in which it competes.
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o Rewards Mechanisms and programs for rewarding employees should be
evaluated.
o Training The resources necessary for retraining to meet changing
staffing requirements should be analyzed. Areas that should be
assessed include the adequacy of current training and employee
development programs throughout the Intelligence Community (as they
relate to occupational skills training and the availability of
training) and the adequacy of resource commitments to these endeavors.
o Work Environment The quality of work environment in each agency,
including availability of appropriate facilities and equipment,
should be compared with corresponding elements in the private sector.
Retirement Systems Existing retirement systems should be evaluated
as both a managerial tool and an employee incentive. The focus here
should be derived from the vagaries of ceiling and special skill
needs and the consequent expectation that age and promotion bubbles
will arise. The evaluation should emphasize problems of plateauing
and the need to ensUre appropriate employee throughput.
o Flexibility The changing and expanding nature of intelligence
requirements and the growing interdisciplinary, interagency character
of intelligence work require managers to have greater staffing and
pay flexibility in organizing the work force. The study should
explore the appropriateness and feasibility of establishing
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tb
alternatives to the General Schedule and/or restructuring the General
Schedule to provide greater management flexibility.
Occupational Pay Occupational pay should be evaluated as an approach
to pay administration.
o Leave and Benefits Alternative leave and benefit programs should be
evaluated with respect to the need to accommodate the modern work
force, which contains an increasing number of dual-income families
and single parents.
o Career Development The adequacy of career development programs in
the face of dynamic change should be examined. Attention should be
paid to existing and potential programs, including efforts to
recognize the roles of both managers and specialists.
Wartime Operations The potential impact of wartime operations on
civilan personnel should be addressed, especially with respect to the
need for continuity of critical functions in the US and overseas.
Steering and Guidance
A Study Steering Group (SSG), chaired by a member of the Intelligence
Community Staff, with representatives (one each) from the Central Intelligence
Agency, the National Security Agency, the Defense Intelligence Agency, the
Department of State's Bureau of Intelligence and Research, the Federal Bureau
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?
of Investigation, and US Army Intelligence (representing all the military
services) will be formed to guide and facilitate NAPA's work, to assure that
necessary support is provided from participating agencies, and to assist the
Intelligence Community Staff in carrying out its role as agent for the DCI in
reviewing and overseeing the study. The Intelligence Community staff will
provide the Contracting Officer's Technical Representative (COTR) for the
study.
The SSG will identify within each participating agency or entity a focal
point for all study-related activity within that organization, including
responses to NAPA's requests for information. NAPA will coordinate all of its
activities through these focal points. Both NAPA and the focal points will
keep the COTR and SSG aware of progress and problems.
The SSG will receive guidance and overall direction from a Study
Management Policy Group (SMPG). The SMPG will be chaired by the Director of
the Intelligence Community Staff and will be composed of NFIC-level
representatives of the intelligence organizations participating in the study.
The SMPG will act for the XI in the review of the interim reports and will
make recommendations to the DCI regarding the final report.
Security.
Names of the NAPA study team and panel will be provided to the COTR prior
to commencement of the study to assure that necessary clearances are obtained
from participating organizations.
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provided with suitable secure office
The COTR will determine that NAPA is P
space and storage facilities. The focal point for each organization will make
such arrangements as may be necessary for office space and secure storage
facilities in individual organizational locations.
Methodology and Study Organization
NAPA shall be responsible for the proposal of a study methodology and
organization which shall be subject to the approval of the COTR after
consultation with the Study Steering Group. The COTR will convey to NAPA any
special study focus and guidance received from the Congressional Oversight
Committees when it becomes available. In defining the study's scope and
tasks, NAPA's proposal shall take into account the funding constraints in the
authorizing legislation as well as timing and other considerations required
for the interim and final reports.
Timing and Reports
The study will begin as soon as practicable after 1 January 1988. NAPA
will provide interim reports on 1 May and 1 August 1988. The study will be
concluded and a final report provided by the DCI to the Oversight Committees
on or before 20 January 1989.
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The purpose of the interim reports is to provide a means for an assessment
by the Congress of new or substantially modified programs and compensations
planned for early implementation. In view of the limited time available to
develop the interim reports, the SSG should advise NAPA early in the study
which such programs should be evaluated. In addition to a report of progress
on the study in general, of particular interest is an analysis of existing or
proposed changes to personnel management and compensation systems aimed at
recruiting or retaining individuals with skills critical to the missions of
the Intelligence Community.
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