LOGISTICS PLANNING CONFERENCE

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP85-00988R000100040080-0
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 12
• Document Creation Date: December 16, 2016
• Document Release Date: August 9, 2005
• Sequence Number: 80
• Content Type: REPORT

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Logistics Planning Conference
The Logistics Planning Conference was opened by Dan King
expressing his intent to get away from the pressures of the
daily routine and establish a sense of the future. A review
was requested of the Office of Logistics' (OL) original 5-year
plan with its changes, assumptions, goals, and impact. From
Mr. King's perspective, 1983 was a very good year for OL. Even
with more work and lean manpower, the morale was high. Respect
for the Office is universally good due primarily to the higher
profile of the covert activities in which we are involved. Our
well-qualified people can serve in a variety of jobs, be moved
and readily reassigned at all levels, and this is not the case
with all offices in the DDA. It is forecast that 1984 will
probably be a peak year for the OL budget and personnel. This
cyclical peak will be followed by a downswing. If this peak is
well utilized it should carry us through the next few years with
new initiatives and resources.
Following the opening session, each division and staff chief
gave a presentation on the new initiatives OL might request for
the 1986 budget. Each component's current status on the 5-year
plan, their accomplishments for the past year, and their
expectations for the oncoming year were also discussed. Further,
each chief addressed a topic of interest in which innovative and
controversial ideas were freely discussed and analyzed.
The following subjects were discussed during the two-day
conference.
New Initiatives for FY 1986
1. Interns for a long-term Logistics Officer Training
Program.
2. Furniture purchases for both stock and standardization,
the latter to utilize interchangeable and modular
components for new systems.
3. Assumption of the O&M for Headquarters Building and
the powerplant, as well as all other federally-owned
and leased space.
44. Alternative and more efficient secure trash disposal
methods and facilities.
Construction n annex or new storage facility for the
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6. Development of an expanded offshore capability and
7?
proprietary in Europe.
Expansion and capitalization of P&PD bindery, press, and
equipment enhancements.
25X1
MBO Discussion
OL had supported the MBO concept as a convenient tool
to cover the range of services that OL provides. Previously,
we made our strategic plans without the input of other Agency
initiatives we would have to support, forcing us to anticipate
the average number of support personnel. The DDA and other
Agency components are now presenting their future plans first,
giving OL the opportunity to respond with more accurate support
estimates. Although these MBOs do give a general idea of what
is happening in each office and allow an interface and a dialogue,
there appears to be too many MBOs to deal with effectively. The
concensus advocated delegating the MBOs and letting the staff
concentrate on major level items. MBOs should allow individual
components possible success or failure in meeting their MBO's
and to adapt as required. OL's flexibility and dynamic change
give us the incentive to succeed in the use of these MBO's
and to produce tangible results.
Standard Support Requirements
I reviewed the history of the DDA budget, which
previously had 1 tle support from the other Directorates. Now
the DDA reviews the other directorates' initiatives first, and our
resources can be applied to provide the correct response and
support to them. A formula has been developed that will generate
the number of personnel required for a specific level of
increased service. All the chiefs were asked to review this
formula for its implied impact on OL support capabilities, and
provide the appropriate feedback as it concerns their division or
staff.
Im rovin the Re uisitionin Process
indicated that he did a survey among some
Procurement Division (PD) and Supply Division (SD) personnel to
find out the areas of most concern regarding the adequacy of
requisitions. Problems identified are listed as follows:
(1) non-existent or inadequate sole source justification;
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(2) unrealistic delivery dates with the time critical requirements
being unknown; (3) insufficient item identifications; (4) too
man items or unrelated items on a single re uisition? lack
1 71 25X1
(6) necessary approvals missing when required by regulation;
(7) contract officer unaware of true requirement; (8) insufficient
use of imprest funds.
The potential solution to these problems could evolve
from a constructive educational program designed to put more
discipline in the system by emphasizing the key role the
requisitioner plays in the logistics process. The necessity of
knowing how to identify requirements and to be aware of necessary
management approvals will become more and more important when
LIMS comes on line. uggested that some degree of
fanfare should accompany any major initiative to improve the
requisitioning process. This could include anything from a
simple Logistics notice to an organization change to establish
an up front review committee to include representatives from
the Procurement and Supply Divisions.
Another area of concern mentioned was the end-of-the-year
crunch. Istated that the inefficiencies built into
the annua year funding constraint are readily apparent to even
the most casual observer. Stricter enforcement of cutoff dates
would help, but the main contributor to the problem is the fact
that all Agency funds are "annual funds." As long as the Agency
is faced with annual-year funding, this problem will probably
continue; therefore, both the Offices of Logistics and Finance
should encourage the Comptroller to look at these inefficiencies
and recommend multi-year funding as the most practical way to
better manage the Agency's financial and personnel resources as
they pertain to the procurement process.
next turned to a rather controversial
concept related to the assignment of requisitions and the goal of
increasing responsiveness. The punchline was that by increasing
the throughput time for each of the elements in the Procurement
Division, the responsiveness of the Division as a whole would
increase. By assi nin additional requisitions to the Small
Purchases Section (SPS) of the General Purchasing Branch (GPB),
there would be a slight increase in the throughput time for that
section. The other two sections of GPB, would also experience
some increase in throughput time because the overall complexity
of their workload would also change because they would no longer
be handling a lot of small dollar requisitions. Work from the
ADP & Engineering Branch and the Production and Services Contract
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section. The other two sections of GPB, would also experience
some increase in throughput time because the overall complexity
of their workload would also change because they would no longer
be handling a lot of small dollar requisitions. Work from the
ADP & Engineering Branch and the Production and Services Contract
Branch could then be moved back to GPB, thus allowing personnel
in these two branches to concentrate on more complex procurement
actions. As a result, PD would be able to increase its overall
responsiveness and yet free up more time for such things as com-
petitive procurements and cost of price analysis both of which
could result in significant cost savings.
I then proceeded to highlight the merits of
competition in the procurement process. He indicated that more
and more of the requirements personnel, including the office
directors, are recognizing the benefits to be gained from
competition. These benefits include such things as cost savings
and better products and services. Reactions to these comments
varied from the perspective of the participants in the conference.
The Director of Logistics wanted more responsiveness vis-a-vis
the additional time and effort involved in running competitive
procurements. Chief, SD felt that responsiveness was more
important and could be enhanced by transferring more actions to
OL proprietaries and with better utilization of SPS. The Chief,
Procurement Management Staff, stated that he leaned towards
responsiveness and that too much competition may be going on
which would hinder the throughput time for processing requisitions
and cause a drain on our scarce personnel resources.
Type of Organization Responsible for
Expanded Headquarters
began discussed significant future occurrences.
A drastic change is anticipated for the Logistics Services
Division (LSD) in 1986 and 1987 with the impact of handling the
O&M of the Washington area locations- 25X1
A name s ou be considered or
both the new and old buildings to alleviate any psychological
differences and competition between the different residents.
Many renovations and capital investments will have to be con-
sidered for the 25-year old present Headquarters Building.
suggested that the organizational changes
could be made in combining the present LSD and Real Estate and
Contruction Division (RECD) into a Facilities Management Division
which would coordinate support both to the physical workplace and
individuals. Four further sections would be established covering
(1) O&M - HVAC, A&D, custodial, utilities, and maintenance;
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(2) Space Acquisition and Management - parking, space main-
tenance, domestic acquisitions, contract administration and
property management; (3) Design and Engineering - interior
decoration, Headquarters, and pneumatic tube
operations; and (4) Services - mail and courier, building services,
executive dining room and transportation. OL will also take over
all the receiving, shipping and transportation for the new
building. The work will increase, but so will the efficiency and
professionalism.
Alternative suggestions to this presentation ranged from
contracting out a majority of these functions, shifting the safe-
house section to covert support, transferring mail and courier
services to the Office of Information Services and retaining RECD
for overseas responsibilities alone. These suggestions could cut
down on the number of overhead support people need for the
Headquarters buildings and retain a staff that handles a scope
of activity and administrative skills, but had the greater number
of personnel working outside the Agency, employed by private
contractors.
25X1
I I- Impact on New Building on OL Responsiveness
Reminding everyone that the move would be very traumatic
if the changes are not considered and dealt with now '25X1
suggested that a single building manager would be necessary
to supply all OL services and provide quick reaction capabilities.
Distribution services must be co.Qoated with combined office copy
rooms and registries on each floor.`'4 Besides a building manager,
OL should still retain a separate field engineering organization.
OL personnel will peak in 1986 and 1987 for the transition period
only, and OL should contract out for these additional resources.
OL must take control and manage the shipping docks by considering
the security aspects, the accountability, better delivery,
coordination, and the storage problems. The procurement function
anticipates a centralized paperless atmosphere, but it is our
responsibility to coordinate this with the receiving and
distribution duties that will be under our purview.
Quality Circles Revisited
The two major objectives of the Printing and Photography
Division (RECD) Quality Circle (QC) Program are: (1) to improve
the quality of work life in P&PD, and (2) to improve productivity
and produce quality products. These objectives evolved from a
Division-wide survey conducted by a Quality Circle consultant in
November 1982. Subsequent to the survey, Division management
(branch and above) arrived at a consensus concerning the goals of
a Quality Circle Program in P&PD and developed a governing policy
statement. All first-line supervisors participated in a full
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,up, Iftap,
week of instruction in the Quality Circle process and group
dynamics. The program commenced in early January with the
formation of seven teams. Each team consisted of a first-line
supervisor (Leader) and personnel from the same work unit. All
personnel are volunteer. The team training phase lasted until
mid-May 1983. The teams utilized a series of twelve, one-hour
video taped instructional sessions in their training. By
mid-May, all teams were fully trained and were actively involved
in identifying work-related problems for consideration.
In late June 1983, our quality circle consultant con-
ducted an interim survey of team progress. He found the real
progress had been made in establishing an appropriate environment
and structure to permit the program to flourish in P&PD. He did
point out that there was a sense among some employees that not
all managers were fully supportive of the program.
Since full-scale operation commenced in May, the
following QC initiatives have taken place:
Team
Item
Benefit Savings
Press Branch
Rehabilitate Press
Skids
Safety and
Efficiency
$3,000
Photography
Analyze videotapes
returned from
Defective tapes $5,000
identified prior
Field for reuse
to reuse
Prepress
Branch
Revise stripping
production process
for CBJB
Reduce errors
and save material
$2,000
Although the primary purpose of the program is to
improve the quality of work life and the quality of P&PD
products, tangible savings are possible as demonstrated above.
The program currently costs the Division approximately 33 hours
of production time per week (approximately $500). The tangible
savings, to date, do not cover the program's costs, but we are
optimistic that substantial dollar savings will be realized in
the near future.
We are in the process of developing tools to measure the
value of the program to the Division. One interesting insight is
the finding that employees in the program are utilizing sustan-
tially less overtime than other employees. It should be noted
that these employees are volunteers and are also some of the most
productive and motivated personnel in the Division. An Agency-
wide customer survey of P&PD services was conducted in July.
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Initial survey results indicate that P&PD's responsiveness and
product quality is very good. We will follow up on the problems
and recommendations made by our customers. By the end of
December, we hope to be in position to objectively judge the
success or failure of this pilot program.
Some of the lessons learned from the pilot Quality
Circle Program to date are: establish a full-time facilitator/
administrator to the program, ensure that management at all
levels is fully committed to the program, and ensure that the
program receives continuous and enthusiastic support by all
managers. Employees are naturally cautious of management
initiatives and will not become totally involved unless they
perceive there is real management committment to the concept
of employees solving their own problems.
During the development stage of LIMS, the salient
challenge had been to secure user involvement in the iden-
tification of requirements and then subsequently to verify
that the identified requirements were accurately translated
and included in the contract for system development. The
challenge was difficult because LIMS is large and complex and
its operation crosses many organizational lines, with attendant
problems of communication and parochial interests competing with
efficiency and sound system logic. Although the documented LIMS
requirements are massive and technical, and thereby somewhat
difficult to relate to the real world operational needs, each
division did provide component personnel and project leaders are
satisfied with this stage of development.
The project has not matured and the character of user
involvement is changing. Even more user involvement will be
required for future tasks. Involvement may now be classified as
functional/technical as one area and managerial as the other.
Concerning the former, specialists will be required to help
devise the test plan to ensure that the delivered system meets
requirements and therby ensures LIMS will be a most useful tool.
The test plan will require innovation and creativeness and must
attempt to make the system fail by introducing mistakes and
atypical data that are likely to be generated in system use. The
plan must test that the system has the appropriate verifications,
edits, and logic to produce complete, accurate, timely, and
reliable data. As a result of these tests, feedback will be
provided to correct system bugs or institute system enhancements
required to meet the functional objectives of each division. In
the latter area of management, each division chief will have to
identify the data necessary to effectively manage his respective
activity. The data then must be reliably captured at the most
convenient point and the computer programmed to manipulate the
data so that user output is available in convenient format.
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Anticipating and capturing data at the most judicious point in
the data flow and the provision of a powerful user-friendly
reports writing package through active user involvement will lead
to definitive requirements and thereby will ensure that LIMS will
indeed be an essential tool, allowing OL to professionally and
responsively meet Agency support requirements.
11Career Management in OL
The question of whether OL should have a systematic
ro ram for employee career development, was discussed by
25X1 He defined career management as "the fullest
25X1
development of an employee's knowledge, skills and abilities.
Personnel feedback to OL's expectation that each employee take
the initiative in managing his/her career resulted in some dissa-
tisfaction with this approach and the feeling that OL management
should initiate more action. There is formal training and a
variety of assignments for new and junior employees; however,
at the mid-level grades and beyond, initiatives for career
management should be a shared responsibility between the
employee and OL management. Experience is often used as a basis
for assigning people, rather than giving people new experiences
for their personal development. This is primarily to satisfy the
needs of the service versus the needs of the individual. It
should be a management initiative to design and implement this
development and to emphasize to the panels their role of spotting
people for placement into new opportunities and programs.
Recruitment and Management of New,
Sophisticated OL Talent
The challenge for OL is to tap, challenge, and utilize
the resources of new college professionals without alienating
the presently employed OL core group. These newer graduates
appear to have very different values from our long-time employed
managers. Some appear to want short term and immediate oppor-
tunities and to start at higher salaries, they have a broader
education and ask what we can do for them rather than the
reverse. Also, the private sector in competing for these
graduates has a much quicker hiring reaction, perceived
better salaries and benefits, and stress a greater opportunity to
participate in the mainstream of technology and management.
There does not seem to be as many disadvantages in competition
with other government agencies for such talent except for our
lenghty hiring time and security requirements.
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Recruiters have not had the resources or specific
knowledge of OL needs to interface with the specific skill
requirements that we seek. OL must package, market, present and
sell the total logistics system. Then either the Office of
Personnel recruiters or our own personnel could provide a better
understanding to the college placement people of our requirements
and present a new thrust that would challenge and motivate as
well as exploit the skills we need. Other selling points in an
OL brochure might emphasize rotational assignments, a student
trainee program, Agency involvement with state of the art tech-
nology, professionalism and intellectual growth, etc. The SOT
program, as an example, sells variety versus specialization.
OL must also exploit the Officer Career Program, develop skills
and provide job enrichment with objectives and goals for personal
development. A task will be to establish an
interactive study group of 4 or 5 recent EODs to work on ways
that we might use their newer educational skills, talents, and
ideas in improving the way we da to our daily work.
Reassessment of Industrial Security
Program
Discussing better ways to relate to the major problems
faced by Security Staff (SS), resented three
problem areas.
(1) The proliferation of information in the computer
area by both the Agency and contractors results in the
availability of too much unknown data. Access to terminals,
tempest considerations, the physical building security, and
paper retention desired by contractors who may need the data for
later expertise knowledge, make the security officer's job very
time consuming as well as difficult. To handle this, security
officers must investigate and polygraph the contractors and then
trust the contractors to do their jobs.
(2) The control of clearances in private industry is a
major problem. Requests for clearances have been increasing at
a phenomenal rate. Matching names in the system, eliminating
names because of and changes of contractors, and
reverifying the I I names in the system cannot be pro-
perly done by the present staff. Only by utilizing retirees does
there appear to be the answer for keeping this massive pool
of information current and up-to-date.
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(3) The education and reeducation of the contractors'
security officers are handled by phone whenever possible.
Solutions to contractors' problems and the interface with them
occupies extensive time. The acquisition handbook is being
rewritten to enable the contracting officer's technical represen-
tative to be more knowledgeable of the requirements levied on
them and the contractors regarding security issues and thereby
assist their contractors in security and contractual problems as
they arise.
Reorganization of OL to Support SD and PD
Process
The advent of LIMS will require some realignment, both
functionally and organizationally, of Office of Logistics line
activities. The Supply Division and the Procurement Division
will particularly be impacted by the new system and we forecast
a closer amalgamation of these disciplines. With LIMS two years
away, it is too early to forecast the exact impact of this auto-
mation on our organization, but we do know that the environment in
which we all work will be less paper dependent, bring all line
activities closer together, provide management with information
that will allow it to closely monitor and measure the respon-
siveness of the system, and call for more discipline.
Bringing on line with Headquarters is
viewed as a major enhancement in our ability to support covert
actions. Future management of Agency inventories will be more
along Depot lines than commodity lines as is the process today.
Future requisitioning processing will require a more educated and
disciplined customer and the new organization will require front
end policing actions levied on the Office of Logistics. This new
organization will be staffed by both procurement and supply pro-
fessionals responsible for material and services source selection,
prioritization of requirements entering OL, material management
of Depot stocks, a services activity which will audit/monitor
system responsiveness, and serve as a point of contact for all
customers of the system.
Changes in the Procurement System and Senior
Management Rotation
In the field of procurement, changes in federal laws
requiring procurement reforms with the development of an Agency
procurement executive, regulations to improve the access of
small business advertisement requirements, and approvals for sole
source contracts are all currently being handled. PMS is looking
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at the delegation system using centralized controlled data and a
warrant system, as well as a single rather than dual delegation
of procurement authority. The constant influx of changes in
procurement has PMS responding in the appropriate and specialized
manner as it concerns the Agency and its regulations.
A discussion of the senior rotation policy within OL indicated
that rotation is generally good in that it raises the professional
management skills for OL and allows for different perspectives in
each job. It should, however, be done slowly and not be
disruptive to the overall OL operations.
Daniel C. King - Summary
Mr. King felt that the meeting was well worth the time
to establish a sense of where the Office was going, and to enable
all to understand the necessity of compromise as well as cohesion.
Last year saw many capital improvements, travel, and the spending
of much money. Now it is important for us to recognize our
resources and risks and to concentrate on what we want to do in
1984, realizing the limitations that may be imposed in 1985.
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