OMB CONCEPTS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82M00531R000400220006-5
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 4
• Document Creation Date: December 16, 2016
• Document Release Date: February 14, 2005
• Sequence Number: 6
• Publication Date: February 4, 1972
• Content Type: MF

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CIR 72--0024
4 February 1972
!%MORANS FOR: D/DCI/NIPE
SUBJECT 0MB Concepts
1. As I advised you and the Director, I have been closely
following Dull' s current thinking about the DCI's community responsi-
bilities. In view of the Roger Jones, ball, DCI scheduled sessions,
Hall's own concerns over the contact teams, and the need to explain
to Congress what this is all about, I have described below some of
the more important aspects of OMB's approach to this matter.
2. First, OMB would like intelligence activities presented and
justified as a single package; this package being shaped and sized
in response to substantive factors, rather than by fiscal considera-
tions, as is the case in DOD. Intelligence programs in DoD must now
compete for funds in a somewhat arbitrary fashion with other programs.
The funds the intelligence programs receive depend upon whether Doi
as a whole has been given a liberal budget or has been squeezed. By
".building a fence" around the intelligence programs (i.e., removing
them from competition with other Do! programs), 0MB believes that intel.li-
geace resource needs can be determined in relation to substantive
requirements. (I agree with them and have urged they place emphasis
on these points.)
3. The guidance now provided Doi? intelligence program managers
is almost totally of a fiscal nature. 0MB sees it as the DCI's job to
provide substantive guidance to intelligence program planning and to
review substantive issues influencing resource needs. Substantive
guidance would have to be issued well in advance of program planning
(about two years in advance) if it is to be useful to DoD. It would
provide to the community the DCI's advice regarding (a) major develop-
ments which are anticipated in political, economic, military and
scientific affairs; (b) the likely impact of these developments an
intelligence requirements and priorities; and (c) the important gaps
and deficiencies against which the programs should focus. (I agree
with this position and have urged its inclusion in the memo.)
4. 0MB sees the "issuer" process as a very important and fus:ida-
mental part of the program/budget process. The DCI's examinations of
substantive issues, and his recommendations resulting from these exami-
nations, would serve at least four purposes: (a) to identify areas
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requiring resource management attention (e.g., improvement in the
application, use, and coordination of resources and assets); (b) to
provide specific guidance on the legitimacy and priority of require-
ments and programs; (c) to assess alternatives with respect to both
requirements and programs; and (d) through the above, provide additional
substantive basis for fiscal guidance to program managers. 41M sees
the DCI relying almost exclusively upon CIA's production offices for
the identification of substantive issues. (0MB is aware that we have
already begun down this path - an obvious point.)
5. OMB's current thinking is that the DCI would use I_RAC for
the coordination and review of planning guidance, issues, special
studies, and coordination of congressional presentations on resources.
6. OMS believes that the DCI's staff should be involved in the
program review processes of CDIP, CCP, etc. They see this role as
somewhat passive, but agree with me, it would not be so far removed
that they would be simply observers. 0MB sees the contact teams as
identifying specific program issues which would support the DCI's
positions with ASD/I, NRO, and even W. The DCI's issues would be
expressed in Program Decision Memoranda which pose alternatives and
in development of the Consolidated Program Budget.
7. I got the impression that 0 BB has not yet figured out just
now deeply the DCI should become involved in the DoD budget process
(as distinct from program review). It is my firm belief the XI Staff
must be involved in the Budget decisions also, and I believe I have
convinced 0" of this. Experience shows that important decisions
are frequently made during budget formulation and execution. If the
DCI is to know the extent to which his guidance and decisions have
been followed in the actual budgets presented to 0MB and Congress,
his staff must monitor the budget process. Similarly, since manpower
decisions are very frequently made outside the program review process
but inside the final budget judgments, this aspect of resource review
must be closely monitored as well.
S. I talked to 0MB about the manner in which the DCI would pre-
sent the Community program/budget to the President through the Director,
0MB. I stressed the view that the DCI input and presence on the
decisions impacting on intelligence should parallel that of the Secretary
of Defense on the Defense programs. I feel this is essential as a power-
ful support to the leadership assignment. On the format of the Con-
solidated Program Budget, it seems clear that 4MB wants to see the pre-
sentation made in terms of functional categories (e.g., collection,
production, processing) and in terms of issues relating to these cate-
gories. Some expression of geographic and functional targeting will
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also be expected, such as identifying collection resources against
Soviet strategic weapons systems, Soviet ground forces, and so forth.
into data base for this analysis, however, must reflect actual account-
ing data and be able to track resource needs back to the appropriation
structures as well. (I agree with OW8 here.)
9. A f iual draft on the "Concept Paper" is about to appear.
rt almost certainly will cover in greater detail the points which I
have discussed above. I have a pretty clear idea of what in a .patted
and I will begin soma fairly specific planning to cope with what lies
ahead just as soon as we get the Director's congressional presenta-
tion boiled down. Your good efforts vis-a-vis Hall and the letters to
the program managors begin to get this on the road.
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cc; Executive Director/CoVtroller
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