INSPECTOR GENERAL'S SURVEY OF THE OFFICE OF LOGISTICS JUNE 1961

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP65-00005R000100020001-1
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 293
• Document Creation Date: December 16, 2016
• Document Release Date: March 16, 2005
• Sequence Number: 1
• Publication Date: June 1, 1961
• Content Type: REPORT

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INSPECTOR GENERAL'S SURVEY
OF THE
OFFICE OF LOGISTICS
JUNE 1961
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INSPECTOR GENERAL'S SURVEY
OF THE
OFFICE OF LOGISTICS
TABTR OF CONTENTS
Page
A. GENERAL 1
Purpose and Scope 1
Office of the Director of Logistics ? ? ? ? 2
B. STAFFS 11
Administrative Staff:
Personnef and Training Branch 11
Administrative Staff:
Records and Services Branch
Administrative Staff:
Mail and Courier Branch
Administrative Staff:
Budget and Fiscal Branch
Administrative Staff:
Graphics Unit
Planning Staff
Security Staff
C. PROCUREMENT DIVISION
17
21
27
28
37
47
Administrative Control Staff 57
General Purchases Branch 62
Interagency Purchase Branch 66
Production Contract Branch 75
Research and Development Contract Branch . 77
RETIJMI To tiCORIIS
IMMEMTELV hU
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Contract Administration and Termination
and Settlement Branches
Page
80
Inspection Branch
85
Snepipi "Prnig, q+n-P-P
91
25X1A6A
109
Depot Purchasing
Services
113
25X1A6A
Activities
119
Procurement
D.
SUPPLY DIVISION
121
Field Support Staff
125
Inspection and Inventory Staff
127
Stock Management and Catalog Branch ? ?
?
.
132
Building Supply Section
134
139
25X1A6A
151
159
25X1A6A
162
25X1A6A
166
25X1A6A
Support Activities
179
25X1A6A
185
187
E.
TRANSPORTATION DIVISION
189
Planning and Control Staff
193
Cargo Branch
196
Passenger Movement Branch
205
Highway Branch
208
F. REAL ESTATE AND CONSTRUCTION DIVISION
.
215
Records and Files Unit
Construction Engineering Branch and
220
Utilities Engineering Branch
223
,
Acquisition Branch
229
Space Allocation and Facilities Branch
?
?
234
Telephone Facilities Section
239
Building Planning Staff
248
G.
PRINTING SERVICES DIVISION
256
25X1A6A
262
Printing Branch
264
Photographic Branch
268
Administration Building Plant
274
K Building Plant
282
Q Building Plant
287
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A. GENERAL
Purpose and Scope
1. The purpose of this survey is to describe and assess tha
Office of Logistics and make any recommendations which seem ap-
propriate. The last Inspector General's survey of this office,
finished in January 1955, covered the history of logistics in
this Agency and stressed analyses of regulations, organization
and procedures. The present survey emphasizes the working-level
view and pictures the office as it operated in the Spring of 1961.
2. Our scope is the Office of Logistics itself, which
25X9A2 employs slightly over people and for Fiscal Year 1962 has a
25X1A1A budget of just over . We are not limited by the defi-
nition of logistics as a system for obtaining, storing and de-
livering supplies, since the Office of Logistics goes further
with such services as printing or answering telephones. Neither
do we include all of the Agency's logistics, since there are
substantial logistic functions outside the Office of Logistics.
3. Four members of the Inspector General's staff began the
survey in January 1961 and by June had personally interviewed an
estimated 90 per cent of all employees, from the Director of
Logistics to warehouse laborers. In addition, inspectors talked
to many of the people who used logistics services within the
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Agency and to some of the higher ranking Government and military
officers with whom Logistics personnel deal. During the survey
representatives of the Inspector General visited every permanent
Office of Logistics depot in the United States and abroad as well
as both overt and covert procurement offices.
4. Early in the survey it became apparent that the team
must make a practical adjustment to two special conditions:
preparations for the Cuban operation, which had an overwhelming
impact on many parts of the Office of Logistics, and plans for
moving to the new Agency building, which were only partly within
that office's jurisdiction. Neither could be inspected thoroughDy
without interference in rush programs, and neither could be as-
sessed fairly while in progress. Consequently we considered
these special projects only as they affected normal operations.
We also avoided some procedural matters, such as reorganization
of paper flow in stock control, on which Management Staff was
working during the survey.
Office of the Director of Logistics
5. The Director of Logistics is a tough and able man with
long experience in management and logistics and a wide range of
useful contacts in Government and private industry. Be demands,
and usually gets, unswerving personal loyalty from his subordinates.
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Organizational charts show that he is aided by a deputy director,
executive officer, assistant executive officer, and a series of
staffs. In fact, the director easily stands out as the dominant
force in his organization. He sets the policy and makes the bas.c
decisions, he knows what is going on, and he does a great deal of
it himself. Because of the unusual concentration of action and
authority in the person of the director, some broad management
problems are discussed in connection with his office.
6. Since the present director took charge in October 1951
the Office of Logistics has had six different deputy directors,
of whom four were active or retired Army officers. One of the
civilians was last deputy in 1951, then military men were deputies
until a civilian served a few months in 1961. As of June 1961
there was no deputy. The executive officer had an administrative
rather than logistics background, and the assistant executive
officer was a detailed lieutenant colonel scheduled to leave in
July.
T. At this moment, the Director of Logistics has no heir
apparent. There is a gap in stature between the director and his
division chiefs; while they are competent in their fields, none
is the acknowledged No. 2 man for the entire office. The director
holds that several of his senior career employees could perform
well as deputy, but the fact is that none in Washington ever has
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been a permanent deputy and none has been specifically designated
or is being trained for the position. Meanwhile, the director
himself is involved in details and decisions which should be
delegated to a strong deputy.
8. Webster's New Collegiate Dictionary recognizes "logistics"
only as a military term, and certainly a military background is
helpful in many of the Office of Logistics' activities. Perhaps
this is why military men have been deputy directors for nine of
the past 10 years. Presumably these officers did their work well,
but they provided no continuity at the top and their personal ex-
perience is not now directly available. This Agency is mature
enough to be developing its own leaders. Failure to do so leavef
it vulnerable in key positions.
9. The Office of Logistics needs a strong and permanent
civilian deputy director whose stature and abilities approach
those of the director. As of early June 1961 the director described
his plans as flexible; he expected to wait until the move to Langley
and then have two top assistants, one in the new building and one
downtown. We doubt that such a division of responsibility will
meet the need for a single recognized deputy with enough experi-
ence and authority to mak,- him practically interchangeable with
the director.
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It is recommended that: No. 1
The Deputy Director (Support) instruct the Director of
Logistics to choose promptly a full-fledged deputy from
among Agency career employees and to delegate suitable
responsibilities and authority to him.
10. From the director down to the lowest storekeeper, the
motto of the Office of Logistics seems to be "Satisfy the Customer!"
This attitude is commendable, but sometimes exaggerated customer
demands have led to overbuilding, overstocking and overstaffing.
Elaborate logistic facilities like those in
abandoned with heavy losses. On a smaller scale, project planners
have tended to ask for too much rather than too little. Theo-
retically Logistics officers may question unreasonable demands
and at the higher levels they sometimes do, but the lower-level
logistician who questions a minor order can usually be overruled
on grounds of alleged operational necessity.
11. The cornucopia concept of logistics is encouraged by a
system under which middle-grade Logistics careerists are assigned
to other parts of the Agency for two years or more, during which
time the host division writes their fitness reports and influences
their promotion. Too often division logistics officers are rated
in terns of how much they can get and haw easily they can get it,
rather than how well they represent the Office of Logistics. Sore
of these logistics officers have spent years in a division without
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ever being visited there by a top officer of their career service.
It is only natural that they should temporarily identify them-
selves with their operating division.
12. Most divisional logistics officers were satisfied with
their roles and said that operations personnel often and eagerly
sought their advice in planning a project. However, we retain
some doubts about the logistics officers' real influence in an
operating division, and these are reinforced by the odd jobs
assigned to them. In one division the logistics officer is
responsible for security, administers the suggestion awards
program, and helps on miscellaneous administrative work. In
another the logistics officer said his effectiveness was measured
not in how well he handled a $100,000 requisition, but by how
efficient he was in keeping the division conference room neat,
orderly, and at the proper temperature.
13. The problem is how to coordinate operational and
logistic planning at the level of policy decisions. This is a
two-way street: the operators must know what support is available
and the logisticians must know what will be expected of them in
the future. The Cuban project solved the problem by borrowing
large numbers of Logistics employees and throwing them into its
own relatively short-term organization. This emergency measure
worked, but it set no pattern for the broader and longer-range
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logistic planning which should be developed for the entire opera-
tional area.
14. Realistic forward programming based on accurate opera-
tional estimates could save much time and money. It requires a
greater appreciation of logistics on the part of operational
planners, plus a sound mechanism for coordinating operations and
logistics at two levels: through the Logistics Planning Staff
for broad long-range programs, and through division logistics
officers for daily needs. Even speculative estimates, properly
weighed and coordinated, would be useful. Like a fire brigade,
the Office of Logistics must meet emergencies as they arise. It
should have the best possible information on the patterns and
probabilities of emergencies.
15. This problem is discussed in greater detail later in
this report. At this point, however, the following general
recommendation is in order:
It is recommended that: No. 2
a. The Deputy Director (Plans) make a basic knowledge
of logistic planning one of the requisites for appointment
to key operational positions, and
b. The Director of Logistics select only top-caliber
officers for detail to other parts of the Agency, relate
his selections to the logistical problems involved, and
develop a program for continuing liaison with these officers
in their temporary assignments.
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16. In the first half of 1961 the Office of Logistics had
too many officers holding positions on an acting basis, due largely
to unusual temporary duty requirements. Office of Personnel charts
produced at the Director of Logistics' request showed that his
office generally lagged behind other parts of the Agency in grades
and promotions. The director planned to work on both these prob-
lems, and may be aided by specific recommendations on personnel
management made later in this report. As a general suggestion,
we believe the director and some of his division chiefs should
take a greater personal interest in supervisor-eixip1oyee relations
at the lower levels, especially among employees (like printers,
bus drivers, or telephone operators) who cannot qualify as general
logisticians.
17. Several studies of the Office of Logistics, including
the Inspector General's 1955 survey, have suggested regrouping
units and functions to separate pure logistics, such as procure-
ment and supply, from services, such as vehicle maintenance and
couriers. During the current survey this question was being
discussed with the Director of Logistics by the Management Staff,
and preliminary work had been done on organization charts divid-
ing the Office of Logistics into two broad areas.
18. We believe there is merit in the idea of centralizing
Washington services under the Agency equivalent of a military
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Headquarters commandant. We believe such a unit might include the
space allocation and telephone services now rendered by the Real
Estate and Construction Division; the shuttle bus, passenger car,
and motor maintenance services of Transportation Division; the
courier service and graphics aids of the AdmInistrative Staff,
and perhaps other services now scattered through the Logistics
divisions. We believe reorganization would be especially effec-
tive if it gave the ordinary Agency employee easier and quicker
access to the control point for services. Obviously no firm
plans should be made until after the Agency is established in ity
new building and the planners can see what is needed.
19. However, we do not believe that the Printing
Services Division should be grouped with other Headquarters
services. Printing is a specialized job which has little in
common with any other function of the Office of Logistics. It
would fit no better after a separation of services from pure
logistics, but its sheer size would balance these areas and
create a temptation to adopt a double-deputy organization. We
believe that a central services unit, not including printing,
should be considered as soon as the Agency is well established
in Langley. It should be a semiautonomous division designed to bring
together in one easily accessible office all routine Headquarters
housekeeping and services..
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It is recommended that: No. 3
a. The Deputy Director (Support) instruct the Director
of Logistics to prepare plans for a semiautonomous division
to include all routine Headquarters services, except printing,
now performed by the Office of Logistics, and
b. The Deputy Director (Support) consider adopting tlieBe
plans after the new Agency building is occupied.
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B. STAFFS
Administrative Staff:
Personnel and Training Branch
1. The Personnel and Training Branch is adequately staffed
by a GS-14 personnel officer, four assistant personnel officers,
a training officer, and two secretaries. The branch performs all
aspects of personnel administration for the [1employees authorized
for the Office of Logistics. These flpositions do not include ln
25X9A2 additional= logistic slots carried on the tables of organization
25X9A2
of other Agency components, for which the Director of Logistics
must furnish qualified personnel,
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2. Of about
Logistics careerists, oniyTl are qualified
and eligible for rotation into approximately overseas logistic
slots. The remainder perform services for which there is no corre-
sponding overseas requirement. They include printers, truck drivers,
telephone operators, chauffeurs, storekeepers, and maintenance
personnel who for the most part are classified wage or labor board
employees.
3. Within the past three years the Director of Logistics
25X1 has effected more thad----linvoluntary separations, either by
resignation, retirement, or under the selection-out process. At
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the time of this inspection on the on-board strength was within
one or two of the personnel ceiling of established for Fiscal
Year 1961. The constant pressure to reduce personnel ceilings is
inconsistent with demands for qualified logistics personnel to
support special operations.
25X1 4. From
gistics careerists were on detail to a
single DD/P project in the spring of 1961. Their loss affected
the Office of Logistics in two ways: by forcing it to curtail its
own work, and by requiring temporary shuffling of duties and
assumption of "acting" titles. The Logistics personnel ceiling
has been lowered to a point where the loss of a few persons in
any component places a heavy burden on those remaining.
5. It is practically impossible for the Director of Logistics
to live under a rigid personnel ceiling for still another reason.
25X9A2 The Logistics slots controlled by components outside of the
Office of Logistics are often cut by those components to show a
reduction in personnel strength. When this happens, the logistics
officer filling the slot must be absorbed in the personnel ceiling
of the Office of Logistics on his return. Under such conditions,
it is nearly impossible for the Director of Logistics to exercise
proper control over the Logistics personnel ceiling.
It is recommended that: No. 4
a. The Deputy Director (Support) authorize whatever
flexibility is required in the Office of Logistics develop-
ment complement to absorb Logistics careerists returned after
elimination of support positions in other Agency components, and
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b. The Deputy Director (Plans) instruct chiefs of major
components to consult with the Office of Logistics six months
in advance when it is contemplated that they will delete
Logistics positions, and in all cases to include these changes
in the career staffing authorization planning paper for each
fiscal year.
6. The deputy chief of the Personnel Branch devotes 30
per cent of his time as secretary to the Office of Logistics
career board. Assisted by another senior personnel officer he has
the responsibility for assembling and reviewing all personnel
records and preparing briefing papers for changes in assignment,
rotation and promotion. He also prepares field dispatches in
reply to Field Reassignment Questionnaires.
7. The Logistics career board meets monthly to consider all
overseas assignments projected six months in advance of the expi-
ration of an incumbentts tour of duty. Selection for a particular'
assignment is based on professional competence and availability.
If two persons of equal ability are considered for the same assiga-
ment, the one longest back from overseas is considered most availa-
ble. With a rotational pool of1111 Logistics careerists, the
Office of Logistics has no difficulty keeping then logistic 25X9A2
slots at overseas stations filled with competent personnel. Under
normal conditions, officers may expect a four-year tour at Head-
quarters before rotation to another overseas assignment. The
personnel officer is able to advise every overseas returnee
several months in advance of his return to what major Logistics
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component he will be assigned, and in many instances his specific
job within that component. The career board acts on
overseas assignments a year.
8. Promotion panels meet twice a year to select employees
for promotion in GS grades -7 to -10, and once a year to fill
vacancies in GS grades -11 to -15. Promotion opportunities in
the Office of Logistics have shown an increase in the past few
years due to replacement of military with career personnel
(military personnel on detail to the Office of Logistics have
25X1 dropped from a total ofnin 1958 to a present total of
and as a result of selection-out procedures. Promotions for
calendar years 1959 and 1960 were as follows:
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9. The Director of Training budgets for Logistics training
requirements and a GS-13 training specialist monitors and coordi-
nates training activities. The basic training objective is to
improve the quality of Logistics support by increasing individual
potential by formal and on-the-job training. This is accomplishea
by developing training progrnms far enough in advance to assure
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the student's availability at the time the course is presented.
The Director of Logistics personally supports the training effort
and insists the chiefs of components make available all employees
selected for training.
10. There has been only token participation in the Junior
Officer Training Program due principally to lack of interest on
the part of trainees in a Logistics career. Of the four JOT's
sponsored by the Office of Logistics, only one has demonstrated
enthusiasm for Logistics work; the remainder have chosen a less
specialized career as generalists in administration. Action has
already been started by the Office of Logistics to increase its
enrollment of JOT's to two per year. A special inducement to
encourage trainees to follow a Logistics career is to make an
overseas assignment available as soon as possible after formal
and on-the-job training in the Supply Division.
11. Several sections of this report emphasize the need for
an increased appreciation of logistical problems among other
Agency components. Even if it did not increase the flow of JOT's
into the Office of Logistics, the JOT program should provide a
general introduction to the procurement, supply, transportation
and logistical planning problems which young officers may face
later in many parts of the Agency. Training officers themselves
describe the present JOT program's attention to logistics as
"minimal, if any."
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It is recommended that:
No. 5
The Director of Training increase the emphasis on
logistics, especially as applied to station and project
management, in the Junior Officer Training Program and in
general orientation courses.
12. As of 1 June 1961, approximately 60 Logistics careerists
had received internal training in 17 training programs since
1 January. In the same period, 24 others had participated in
external training courses. The Director of Logistics has estab-
lished a minimum training program that all Logistics' careerists
below GS-14 must complete before they are eligible for promotion.
The training officer organizes special training courses on demand.
Details of the course are worked out with the requesting component
and full use is made of Logistics specialists recently returned
from overseas. A two-day printing services seminar for non-
logistics personnel is conducted periodically, and is discussed
more fully in the section of this report on the Printing Services
Division.
13. A 20-hour Special Contracts Familiarization Course was
set up in 1960 at the request of OSI for the purpose of educating
its personnel on contracting procedures peculiar to that office.
It was attended by 24 OK personnel, and was so well received
that at the request of the Director of Communications, the same
course will be repeated during the coming year for Communications
personnel.
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14. The biggest problem the training officer must face is lack
of adequate classroom space. The Office of Training is aware of
this situation, and is hopeful that facilities in the new building
will bring permanent relief.
Administrative Staff:
Records and Services Branch
15. The Records and Services Branch of the Administrative
Staff is the Office of Logistics' advisor on procedures for
producing and storing papers. This is no small task, for if
all Logistics Headquarters file drawers were laid end to end
they would cover more than a mile.
16. Fortunately the branch is headed by an experienced
female GS-11 who has worked almost 10 years in the office of
the Director of Logistics, is thoroughly familiar with paper
work, and has the patience and personality to make her advice
effective. Her unofficial deputy, a female GS-91 has been
with Office of Logistics almost as long and has worked with
the branch chief since 1954. Besides these two, the branch
includes a young man who routes and hand-carries cables and
two young women who handle dispatches and mail distribution.
17. Form 238 (Document Control), the familiar six-page
routing slip, is used to record most documents. After the
document is routed two copies of Form 238 are filed in Records
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and Services Branch, one copy numerically and the other by office
of origin. Divisions are expected to answer routine cables in
three working days and dispatches in five, and the branch keeps
a tickler file which permits it to prod tardy correspondents.
18. TOP SECRET documents are controlled by Form 1225 (TOP
SECRET Control Record), which was developed by the Office of
Logistics in 1958 as an Agency-wide form. It is similar to
Form 238 but includes space for entering the date and time a
document changes hands and the signature of each recipient.
Theoretically Form 1225 is available for general use and might
greatly reduce the need for TOP SECRET logs; in practice the
form appears to be used only by Office of Logistics, and random
telephone calls to five DD/P and DD/I officers concerned with
recording TOP SECRET material uncovered no one who had even
heard of Form 1225.
It is recommended that: No. 6
The Agency Top Secret Control Officer study the appli-
cability of Form 1225 to other parts of the Agency and either
promote its general use or inform the Office of Logistics
that it should be redesignated as an internal Logistics
record.
19. The branch chief serves as Office of Logistics' Records
Management Officer and makes periodic and conscientious surveys,
actually opening files and asking questions, in an attempt to
have Office of Logistics follow clerical procedures and hold
down paper work. She briefs all Office of Logistics' secretaries
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at least once a year on correspondence procedures and enjoys
enough personal prestige among them to assure compliance with
suggestions.
20. Logistics officers are authorized to correspond directly
with their counterparts abroad on logistics matters and normally
send routine papers and forms under the transmittal manifest system
introduced several years ago. The branch chief estimates that this
manifest system alone has reduced Offiae of Logistics' correspondence
by 5,000 dispatches a year. Where dispatches are required, secre-
taries often have trouble keeping abreast of organizational and
address changes in DD/P components. They rely in part on personaL
contacts for this information and often have difficulty addressing
correspondence to such units as the CA Staff. In view of the
extensive correspondence between the Office of Logistics and DD/P
units, the chief of the Records and Services Branch should have
some directory which would assure accurate addressing.
It is recommended that: No. 7
The Chief, Operational Services, DD/P, authorize the
Records and Services Branch, Office of Logistics, to receive
such directories as mny be necessary to assure accurate
addressing of correspondence TIIPSP
ii necessary.
21. The branch is the focus for Office of Logistics' vital
materials program, under which basic documents are preserved at
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. Through the branch flow copies of
all contracts let through Office of Logistics, as well as catalog5,
supply manuals and technical mflnuals. The branch chief is a member
annual exercises, and
of the Logistics team which goes to
she has started a program to review vital records and weed out
expired contracts.
22. The Records and Services Branch performs a series of
miscellaneous functions. It prepares a daily cable reading file
for the Director of Logistics and maintains his permanent files,
It approves requests for creation
of new Logistics forms and maintains the central library of Agency
regulations. Finally, the branch handles United Givers' Fund and
similar charity campaigns within Office of Logistics.
23. The branch appears to perform efficiently. Its chief is
a superior employee whose influence is based more on experience
and personality than on official authority. This influence spreads
throughout Office of Logistics and has to some extent simplified
and streamlined recordkeeping, but it cannot be expected to have
a major impact on so great a volume of paper work. One area for
possible simplification is in the use of standard forms, of which
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there are 232 applying only or primarily to the Office of Logistics.
The DD/S Support Procedures Committee already is working on the
elimination or consolidation of such forms, so no broad recom-
mendation on the subject is made here.
Administrative Staff:
Mail and Courier Branch
24. The Mail and Courier Branch, located in Q Building, is
the focal point for coordinating the receipt and dispatch, collec-
tion and distribution of all official Agency and Post Office mail
consigned to it for processing. On 8 May 1961 the Inspector
General submitted a special report on the security aspects of
Agency courier activities. This section in limited to management
and staffing problems as they relate to Paragraph i (2) (r),
which assigns responsibility for the official Agency mail and courier
service to the Director of Logistics.
25. The branch chief, GS-11, has served in the Mail and Courier
Branch of every predecessor organization of the Central Intelligeqce
Agency since 1941. His assistant, a GS-9; two sections chiefs, and
three GS-7 and -8 working supervisors direct activities of 50 mail
and courier staff employees and six Wage Board heavy-duty truck
gm4, The branch operates on an annual budget of approximatelT
of which 70 per cent is for personnel services. Its
25X1A1A
per year,
major operating expense is postage, amounting to
and it handles more than 7 million pieces of nail annually.
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26. Internal pickup and delivery of classified material is
made torlestablished registries on six courier runs per day.
Schedules are arranged to guarantee maximum two-hour service be-
tween any two registries. There are 10 one-man courier posts at
strategic locations to speed deliveries.
27. Interagency service extends to approximately 140 federal
agencies, embassies, legations, and military establishments in the
25X1A2G
Washington area. Scheduled runs are made to I 1, the
?5X1A6A
and the Atomic Energy Commission at
Germantown, Maryland. An average of 25 to 30 special courier runs
are required daily. Armed couriers are furnished on call.
28. During the initial phase of the move to Langley, the
currently authorized strength of
staff employees and
vehicles will be inadequate to maintain satisfactory courier
service to widely scattered components. An increase of 15 couriers
in grades GS-4 and -5 and three additional vehicles, asked by the
branch chief in January 1961, is fully justified. The leveling-
off figure cannot be determined until all components are settled
in the new building and the problems of distances and routes are
explored. Restriction of the George Washington Memorial Highway
to passenger vehicles only, disinclination of the Washington Post
Office to deliver mail to Langley, and increased requests for
special runs are typical of some of the problems to be encountered.
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Present plans call for locating an 18-man substation in the RecreEL-
tion and Services Building, with the remaining Flcouriers on the
ground floor of the east wing of the new Headquarters building.
29. The shortage of couriers under the current T/0 has led
to improper use of supervisory personnel. Ninety per cent of their
time is devoted to non-supervisory functions such as sorting mail
and making special courier runs. It is essential that these
supervisors be relieved of these tasks during the early part of
the move to Langley so they may give their full attention to main-
taining security, service, and morale among couriers themselves.
30. Individuals assigned to the Mail and Courier Branch are
young married high school graduates recruited as GS-4's, who as
a general rule show remarkable stability until they reach GS-5.
The more ambitious ones grow restive at this point because
vacancies occur at a very slow rate in the 10 GS-6 slots held by
senior couriers. There is little or no opportunity for Logistics
couriers to move into the GS-7 courier slots approved under the
tables of organization of other Agency components, such as OCT ani
PIC, where it is customary to fill courier positions from within.
31. Dissatisfaction grows when Logistics employees are un-
able to get information on other Agency assignments for which they
might consider themselves qualified. The practice of OCT and
other DD/I components of circulating internal vacancy notices was
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frequently proposed by Logistics couriers. To circulate vacancy
notices in the large number of service-type components in the
Office of Logistics is impractical. To improve morale and not deny
a courier the opportunity to demonstrate his potential in another
field of endeavor:
It is recommended that: No. 8
a. The Director of Logistics cause the records of all
GS-5 and GS-6 couriers to be reviewed annually for the purpose
of placing these individuals in another component of Logistics
if they are qualified and a vacancy exists.
b. The Chief, Administrative Staff, Office of Logistics,
encourage and assist the progression of senior couriers in the
Mail and Courier Branch, Office of Logistics, to courier posi-
tions of higher grade elsewhere in the Agency.
Administrative Staff:
Budget and Fiscal Branch
32. A GS-13 professional and five assistants assigned to the
Office of Logistics by the Comptroller's office are responsible
for fiscal control over the expenditure of funds for stock procure-
ment and direct purchase for all Headquarters-controlled activities
including the direct procurement service
Fiscal records are mair?
tained on each of the 20 accounts in order to give the Director of
Logistics an accurate status of bulk stock allotments as of any
specified date. In addition, the budget officer and his staff
prepare a consolidation of the budget estimates of each of the major
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staffs and divisions of the Office of Logistics for budget presenta-
tion purposes, and supervise the management of this budget which
for Fiscal Year 1961 amounted to
33. A decision by the Comptroller in Fiscal Year 1956 to de-
centralize fiscal control of bulk stock allotments to the Director
of Logistics has worked out well. Under this procedure the
Comptroller automatically withholds from each component that portion
of budget estimates intended for Headquarters property procuremeht
and allots these funds to the Office of Logistics for control.
Armed with budget estimates of the various components and with
fiscal control of funds, the Director of Logistics can follow the
anticipated requirements of each component for property procure-
ment in the ensuing fiscal year.
34. Fiscal control of bulk stock allotments has contributed
to greater economy and flexibility in meeting operational needs.
For instance, if a component has budgeted for 10 typewriters and
there are 50 in stock, funds earmarked for this purpose can be
used for stock replenishment of items in short supply. Likewise,
if budget estimates disclose that 100 tape recorders are needed
and only 50 are in stock, this projection will support bulk pro-
curement which is much inure economical than purchasing tape
recorders a few at a time over extended periods.
bulk stock allotments amount to approximately
25X1 This amount rose t
25X1
On an average,
25X1A1A
a year.
in Fiscal Year 1961 as a result of
operations.
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35. The mechanics of fiscal control involve (a) certifica-
tion by the requestor on the face of the requisition that the
item is authorized and requisitioning cost authority will not be
exceeded, and (b) verification by the Office of Logistics budget
officer that funds in fact do exist and the items can be properly
charged to an approved allotment. This simple procedure becomes
complex when applied to processing 4,000 or 5,000 requisitions a
month and maintaining accurate records of commitments, obliga-
tions and expenditures of vouchered and unvouchered funds in 20
Headquarters accounts.
36. Only one 03-7 experienced fiscal accounting clerk is
available for this important work. It is practically impossible
to produce up-to-date figures on any one category of funds on
short notice without serious interruption to normal routine.
Changes occur by the minute and the monthly status-of-funds
report is perhaps the best approximation at any specified date.
The installation of a Burroughs Sensematic accounting machine adds
to neatness, uniformity and accuracy of accounting records, but
does not reduce the worrisome, time-consuming effort now expended
in acquiring correct figures from a variety of sources to show
the status of funds.
37. This situation becomes particularly acute near the end
of every fiscal year when requisitions arrive in increasing numbers.
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The Director of Logistics has had to establish an arbitrary date
late in the fiscal year when stock procurement must be suspended,
except under the most urgent need, in order to be assured that
unreported obligations and late requisitions will not exceed the
approved allotments. In addition, a cut-off date reduces expen-
sive last-minute buying.
38. To achieve greater refinement and accuracy in fiscal
accounting and to assist the present fiscal clerk in a prodigiouu
task, another fiscal clerk is needed.
It is recommended that: No. 9
The Director of Logistics ask the Comptroller to assign
an additional experienced fiscal clerk to the Budget and
Fiscal Branch to help control property procurement allotment
accounts.
Administrative Staff:
Graphics Unit
39. A two-man graphics unit prepares charts, posters, signE,
cartoons and other graphic aids for all DD/S components and
occasionally for other parts of the Agency. Graphics products
are by nature eye-catching, and their production requires spread-
ing classified material over a wide area of drafting boards, silk-
screen tables, and spraying rooms. During this survey the in-
spectors made, and the Logistics Security Staff promptly accepted,
some suggestions for more secure handling of graphic material
previously exposed to casual scrutiny.
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40. Illustrators in the graphics unit are classed as
Logistics careerists, though they have little in common with
logisticians. This designation prevents the senior illustrator,
a GS-11 with a Master of Arts degree, from being considered for
vacancies in several other graphics units such as those main-
tained by OTR, OCI and TSD. These units probably are too small
and too closely geared to their own components to permit consolida-
tion, but qualified personnel from one unit should be considered for
vacancies in another.
It is recommended that: No. 10
The Director of Personnel consult the supervisors of ail
graphics units in the Agency and arrange to have qualified
technicians considered for vacancies regardless of their
career designations.
Planning Staff
41. The Planning Staff performs functions outlined generally
in Logistics Instruction No. 1-140-4, dated 22 November 1957.
Activities can be separated on a functional basis but cannot
easily be divided on a geographic basis. Yet the instruction
specifies a Europe/Near East/Western Hemisphere Branch and an
Asiatic/Pacific Branch. This statement is ignored as a practical
matter and the branches are referred to as Branch 1 and Branch 2.
Both are involved in basic planning activity and in specific near-
term and continuing projects. Branch 1 activities are weighted
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primarily on the planning side and Branch 2 primarily on the
specific projects. The impractical aspects of the division of
responsibilities as stated in the 1957 instruction were recognized
in the Planning Staff and during 1960 a revised statement of
organization and functions was proposed, but no formal action
was taken.
It is recommended that: No. 11
The Director of Logistics promptly issue a revised
statement of organization and functions of the Planning
Staff.
42. The Planning Staff is headed by a GS-15 in a GS-16 posi-
tion. He assumed his position after the survey began in a transfer
from Special Planning Assistant to the Deputy Director (Support).
The T/0 was reduced in January 1957 from positions and
again in February 1958 to npositions. There are Oprofessional
positions, of which five are military. Three civilians and one
25X1 A8A
military officer on the staff Tb O were detailed to at the
time of the survey.
43. Continuity in the Planning Staff has suffered from the
rapid rotation of personnel. The average period of duty for
those civilians beginning and ending their tours with the staff
during a four-year period, 1957 through 1960, was less than 12
months. Military officers provided more continuity, averaging
18 months. There was more continuity in the position of chief
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than in the staff as a whole. One military officer and one
civilian covered a span of about four years.
44. Logistics planning and forward progrnmming is a compleK
problem, particularly for the Agency. To be effective it requires
professional experience and substantial knowledge of Agency opert-
tions. Military officers with advanced training in logistics
planning have particular value in the Planning Staff. They are
handicapped by their lack of familiarity with the Agency, but
even so, we were impressed with their contributions. The Office
of Logistics has not developed a contingent of career employees
who could be classed as professionals in logistics planning.
It is recommended that: No. 12
a. The Director of Logistics provide for continuity of
experience in the Planning Staff.
b. The Director of Logistics select career employees
who hold promise as professional logistics planning and
programming officers and arrange special training for them
within or without the Agency.
45. The plans and project activities originate outside the
Office of Logistics, from the Director of Logistics, and within
the Planning Staff on its own initiative. Some of the plans ac-
tivity is of a continuing nature, such as war plans, logistics
plans for major paramilitary operations and limited plans for
specific clandestine operations. Some projects have little rela-
tionship to true planning but are problems assigned by the Office
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of the Director of Logistics. The Director of Logistics needs
an organized group to handle problems which initially do not fit
the line divisions. He uses his Planning Staff for this purpose,
and it is considered proper that he do so.
46. The planning experience of the staff members, the
flexibility of the staff, and the availability of essential data
permits them to handle some problems more efficiently than other
Logistics components. Such projects help keep the Planning Staff
alert to current activities of the Logistics organization and
safeguard against a tendency to withdraw and plan in a vacuum.
The practice of using the Planning Staff for special projects is
good, provided it does not force the important planning activity
into a subordinate and neglected category. There is no reason to
believe that the Planning Staff activities are out of balance in
this respect.
47. If planning and special project work are to stay in
reasonable balance, as new projects are undertaken by the staff
other projects must be disposed of by completion or transfer.
One project serves to illustrate the principle. The Office of
Logistics' participation in plans, organization and designation
of personnel for the Contingency Force was handled by the Planning
Staff. That staff should continue to monitor the Logistics policy
and planning aspects. However, such matters as redesignation of
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specific individuals as part of the Contingency Force, as required
by normal rotation and transfer, should be transferred to the Office
of Logistics AOministration Staff as a normal personnel function.
48. If the Office of Logistics is to operate efficiently in
terms of manpower and money and avoid failure in Agency missions
through inability to meet demands for logistics support, planning
and forward programming are essential. Reduced to the minimum,
realistic planning requires four primnry steps:
a. General operations concepts.
b. General logistic concepts.
c. Detailed operations plan.
d. Detailed logistic plan.
49. The Planning Staff undertakes to educate others on the
need for the four essential planning steps. The general opera-
tions concept, or a substitute therefor, is the point of departure.
The Planning Staff logically wants full, authoritative and docu-
mented general operations plans. However, firm and documented
policy guidance is not absolutely essential, and insistence on
this can be self-defeating, for the ebb and flow of Government
policy and attitudes make it difficult for the Deputy Director
(Plans) to provide long-term guidance for the Office of Logistics.
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50. The Planning Staff can work on speculations and assump-
tions by DD/P organization and has proved that it can prepare
general logistics concepts or plans on rather thin advice and
guidance. The Planning Staff has been wise in studying National
Intelligence Estimates and, as a result, is in a position to
anticipate needs. However, it cannot and should not try to bride
completely the gap between National Intelligence Estimates and
general logistics plans without guidance from the Deputy Director
(Plans).
51. During the past few years there have been exchanges of
information and views between the DD/P complex and the Office of
Logistics. The
, has displayed under-
standing and appreciation for the problems of the Office of
Logistics in regard to adequate lead time. The development of tle
25X1 A2C
operations and logistic plan for an NE Division project,
is an example of what can be done even with a less than perfect
exchange. NE Division is working on area plans which will give the
Planning Staff a point of departure for general logistic concepts
even though the NE work may be based, in part, on professional
speculations rather than approved conclusions. On the other hand,
the Planning Staff has received nothing of significance from DD/P
components for Africa which could serve even as tentative guidance
for general logistic planning.
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52. Development of correlated detailed operations and detailed
logistic plans is a problem of the decade of the 1950's rather
than the 1960's even though difficulties in execution remain. The
basic immediate problem is the development of correlated general
operations and general logistic concepts or plans. Until this iB
solved, the Office of Logistics cannot do a meaningful job of forward
programming but must rely on guesses, luck, and stockpiles.
53. The Planning Staff has demonstrated that general
logistic concepts can be developed with guidance based on pro-
fessional operational opinions rather than formal policy statements.
The NE Division has demonstrated that an area division can give
adequate guidance for tentative or general logistic concepts. The
Deputy Director (Plans) has, or can provide, the organization to
coordinate general guidance of the divisions and avoid doubling
the logistic revirements. The Special Planning Assistant, DD/S,
is in a position to coordinate the interest of the offices of the
DD/S area.
It is recommended that: No. 13
a. The Deputy Director (Plans) provide the Deputy Director
(Support) forward guidance at least annually on the general
operational activities foreseen on a global basis by area and,
as significant, by country.
b. The Director of Logistics ask the Deputy Director (Plans)
to provide additional guidance on prospects for operational
activity on specified areas or countries as is found essential
in forward logistics progrprming.
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c. The Deputy Director (Plans) and Deputy Director
(Support) approve and encourage direct informal exchange of
information for logistic plans and concepts between the
Planning Staff, Office of Logistics, and DD/P components.
d. The Director of Logistics and the chief of each area
division jointly develop a statement of duties and responsi-
bilities for the senior logistics officer of each division,
including his role in the development of logistics plans and
programs.
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57. The Planning Staff has successfully handled a variety of
special problems. Individual members have shown initiative in
solving problems and generating constructive projects. We believe
that the efforts of the military officers warrant special note.
58. One project assigned to the staff by the Director of
Logistics in June 1959 succumbed to ineffective action. This
concerned the analysis and evaluation of "Agency-wide systems fo:-
prouurement and distribution of materiel in support of foreign
operations." Components such as the Office of Communications and
Technical Services Division are involved along with the Office
Logistics. Questions of compatibility of their different system
and duplication of facilities tended to arise. The new chief of the
Planning Staff has revived the project.
59. As a practical matter, we do not believe that the
Planning Staff can go beyond proposing an approach to the problen
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because DD/P components as well as other DD/S offices are directly
concerned. Nevertheless, the analysis and evaluation of the
various Agency logistic systems as envisioned by the Director of
Logistics should be considered. A complete study could require
extensive man-hours and travel, and before it is undertaken the
Deputy Director (Support) and the Deputy Director (Plans) should
make a determination regarding its probable value.
It is recommended that: No. 14
The Deputy Director (Support) and the Deputy Director
(Plans) appoint representatives to explore the problem of
compatibility of Agency logistic systems and report within
30 days their determinations in regard to the probable value
of a detailed survey.
Security Staff
60. The Security Staff, placed immediately under the Director
of Logistics, is primarily responsible for the Agency's classified
contract security program and additionally charged with internal
security in the Office of Logistics. Authority for the primary
program is contained in
which, in slum-nary, mskes the
Director of Logistics responsible for approving the classification
of contracts, clearing contractor personnel through the Office of
Security, briefing contractor personnel and obtaining secrecy
agreements, and inspecting plants to make sure they meet and main-
25X1A13B
tam n physical security standards. I
2_5X1A13B
1
Ithe Office of Security, which also
provides technical guidance to the Logistics security officers.
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65. Many companies already are equipped to protect Agency
materials and documents, but in some cases even companies with
Department of Defense contracts must install extra partitions,
safes, or procedures to meet the Agency's higher standards. In
such cases the company may ask the Agency to pay for extra pre-
cautions, or to lend the company safes and security equipment.
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is about $1,000, and in many companies producing intrinsically
classified equipment there must be added the cost of partitions,
locks, and possibly guards. The chief of the Security Staff
estimates that $50,000 to $75,000 a year could be saved if Agency
standards for industrial security did not go beyond those of the
Department of Defense. An informal study already is underway to
see what savings can be realized without undue risks.
It is recommended that: No. 15
The Deputy Director (Support) instruct the Directors of
Security and Logistics to pursue the study of Agency industrial
security standards as compared with those of the Department of
Defense, in order to realize any savings possible without com-
promising security.
25X9A2
66. The Security Staff is composed ofl
125X9A2
lir
Jae
officers all are Office of Security careerists detailed to their
present assignments. The chief and his three male officers cover
the entire United States and spend about one-third of their time
travelling. Under a plan approved late in 1960, a full-time GS-12
25X1A6A
procure-
25X1A6A
ment office to cover contractors in and one in
or -13 security officer will be added to the
67. Five employees in the Office of Security's domestic field
offices have been trained to conduct industrial inspections, but
their help is strictly limited by over discrepancies. Perhaps
nothing can be done to cut the travel load further, but one step
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can be taken to reimburse security officers for out-of-pocket expenses.
During their plant visits these officers often are entertained by
company officials. Such entertainment is normal and not lavish,
often consisting of a simple lunch in a company cafeteria. Agency
officers usually feel under obligation to repay the hospitality
and thus far have done so at their own expense. The amounts in-
volved are not large, but since they are spent as a direct result
of Agency work they should be reimbursed to the extent they exceel
normal travel costs.
It is recommended that: No. 16
The Director of Logistics authorize officers dealing with
contractors, such as members of his Security Staff, to claim
reimbursement for reasonable entertainment costs incurred as
a direct result of their official duties.
68. The very nature of security work makes careful and
voluminous records essential. All five officers type their own
rough drafts and turn them over to a single secretary. As of this
inspection there was a time lag of about three weeks between an
officer's rough draft of routine reports and their return from the
typist. Although this delay was due in part to the Security Staff's
habit of writing formal memoranda on matters which might have been
handled orally, it also reflected a genuine overloading of one
typist.
It is recommended that: No. 17
The Director of Logistics temporarily assign another
clerk-typist to the Security Staff, and instruct the Chief,
Security Staff, and the Chief, Records and Services Unit,
to determine whether more of the staff's internal records
can be kept in rough draft or handwritten form.
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69. In its relations with other parts of the Agency, the
Office of Logistics has attempted to emphasize the importance of
checking with Logistics before making even the most preliminary
of procurement inquiries in industry. Agency Notice
requires that "all CIA headquarters personnel should coordinate
with the Security Staff, Office of Logistics, any initial contacts
with commercial firms, universities, etc., when the purpose of
the contact is contemplated Agency procurement contracts, both
classified and unclassified." This notice expired 1 August 1960
and was not renewed because of plans to include its provisions
in a proposed new regulation. Unfortunately, the new regulation
was issued on 1 April 1961 without the substance of the
expired notice. Even while in force, the notice was often over-
looked by overt Agency employees who did not realize that pre-
liminary inquiries on behalf of CIA might affect a company's
ability to conceal Agency interest in confidential work which,
unknown to the overt employee, might already be in process under
a classified contract. According to the Security Staff, the
tendency to make uncoordinated approaches and to misunderstand
cover problems is most often found in DD/I employees unaccustome6
to clandestinity.
It is recommended that: No. 18
The Deputy Director (Support) reissue Agency Notice
and the Deputy Director (Intelligence) call it to the attention
of employees under his jurisdiction.
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70. For at least five years there has been a misunderstand-
ing between the Office of Logistics and the Technical Services
Division, DD/P, over responsibility for the security of TSDIs
classified contracts. Agency Regulation
makes the Director 25X1
of Logistics responsible for "determining that the contractor ha,
or will establish, adequate physical security safeguards and per-
forming security inspections." This regulation applies to the
entire Agency and specifically covers both the masking of Agency
association with a company and the protection of intrinsically
classified supplies and services. Nevertheless, TSD maintains its
own security staff and has consistently claimed the right to handle
security inspections of TSD contractors. TSD's position is
25X9A2
supported within the DD/P area by I
12_5X9A2
'which states that TSD security staff
"maintains liaison with the Office of Security, provides security
services to TSD, and conducts security inspections within TSD and
its contractors/ facilities to ensure that the Agency's security
program is being carried out" (underlines added). The two regula-
tory issuances appear to be in direct contradiction.
71. The Director of Logistics reasonably wants to retain
command responsibility for the security of contracts let through
his office, but the Logistics Security Staff lacks the manpower
to perform inspections for TSD. In former years there were heated
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arguments over each component's "rights" in the matter. Fortunately
the chiefs of the Logistics and TSD security staffs have worked out
a modus vivendi which seems to satisfy both. In effect, the Office
of Logistics still claims responsibility but delegates actual in-
spections to TSD security officers, who keep Logistics informed of
their findings and recommendations. This informal arrangement has
worked well for more than a year, largely because of good personal
relations between the officers involved. To prevent misunderstard-
ings in the future, the present arrangement should be regularized
by removing contradictions in regulations.
It is recommended that:
No. 19
a. The Deputy Director (Support) revise _o as
to authorize the Director of Logistics to de classi-
fied contract security inspections, at his discretion, to
qualified security officers of other Agency components, and
25X9A2
b. The Deputy Director (Plans) revise so as to
acknowledge the Director of Logistics' basic responsibility
for the security of contracts let through his office and re-
quire any DD/P component Trinking delegated inspections to
channel its security reports and recommendations through the
Security Staff, Office of Logistics.
72. On 15 August 1958 the Director of Security recommended
that the Office of Logistics "establish a centralized log on each
classified document and all material sent to and received from
specific contractors in relation to a specific contract, even
though originating in other Agency components." This desirable
objective is not likely to be attained. The Office of Logistics
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does maintain an accurate log of its own classified correspondence
with contrattors? but it has never been able to keep track of the
classified but often informal correspondence sent to the same
contractors by other Agency components. It is equally unable to
control the guidance and background papers handed to contractors
during visits to plants.
73. Even if they had a complete list of tlassified papers
given to a contractor by all Agency components, Logistics security
inspectors could not make more than occasional spot checks. A
complete inventory would prove little about a company's security,
for it would not show whether a document had been copied or
compromised. For practical purposes, once a document has been
given to a contractor the chief guarantees of its security are
the honesty and discretion of cleared officials.
74. Within the Office of Logistics the Security Staff has
all normal security responsibilities plus some unique to the
logistics function,
LOA !MI ID
of surplus property
before disposal. I6 is technically responsible for the security
25X1 A2
of Project
but has not actually made any security inspec-
tion of this project since it was started in 1954. The exemption
5X1 AG
of Project Efis based on the coincidence that it is handled
by a former career security officer. A recommendation on the
security of Project I I is made in paragraph C-106 of this
report.
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C. PROCUREMENT DIVISION
1. The Central Intelligence Agency Act of 1949 authorizes
the Agency to procure supplies, equipment and contractual servicea
and to exercise certain authorities contained in the Armed Service
Procurement Act of 1947. Under Agency regulations the Director of
Logistics is directed to (a) effect procurement of and obligate
Agency funds for all supplies and services, (b) redelegate procure-
ment authority to the extent deemed necessary to other officials
of the Agency or individuals acting for or in behalf of the Agency,
(c) designate contracting officers and establish their contractuat
monetary and other limitations within the scope of the authority
delegated to him by the Director of Central Intelligence. Instruc-
tion No. LI 1-140-6, dated 3 June 1959 and issued by the Director
of Logistics, presents the organization and functions of the
Procurement Division. The division is assigned the responsibility
for procurement of materiel and non-personal services (except reaL
estate and construction), including staff support to the Director
of Logistics concerning all procurement programs.
25X1A1A
2. The dollar value of procurement actions was
in Fiscal Year 1960, which was about 1 per cent over the Fiscal
Year 1958 and 1959 level. Procurement by contract represented
64.9 per cent of the total and over half of that was under research
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and development contracts.
25X1A11A
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125X1A11A
3. Procurement actions totaled about 17,300 for Fiscal Year
1960, which was slightly under the Fiscal Year 1958 and 1959 leveL.
For the first eight months of Fiscal Year 1961, the number of pro-
curement actions was about equal to the same period of 1960, but
the dollar value increased.
4. There are three primary segments in the Procurement
Division's activities.
The
division is organized into five branches under a deputy chief for
contracts, two branches under a deputy chief for purchases, a
Special Projects Staff, and an Administrative Control Staff. The
Office of Logistics uses the term 'branch" to identify the sub-
divisions under the deputies for contracts and purchases, whereas
the Office of Personnel in the Position Control Register uses the
term "section." The size of the subdivisions and the scope of
their activities would indicate that "section" is more appropriate.
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5. There is something more important than semantics in the
titles and organizational breakdown of the Procurement Division.
9A2 25X9A2
Of the /0 positions for the division,E1 are under the deputy
X9A2
a
for contracts and under the deputy for purchases. Therefore,
17 positions are not under
the jurisdiction of either deputy.
Three of the 17 positions are in the office of the division chief,
nine in the Administrative Control Staff,
Projects Staff. Those units are
directly
whose supervision of the Special Projects
and five in the Special
under the division chief,
Staff is only theoretical.
6. Giving the titles of deputy to the chiefs of the contracting
and purchasing activities tends to conceal the fact that the chief
of the Procurement Division does not, in practice, have a full
deputy. The true situation is obvious if we refer to the deputy
chief for contracts and deputy chief for purchasing as branch chiefs
and use the term "sections" for the next subdivisions. The smallest
subdivisions, whether called sections or branches, range from three
to 11 persons, so no supervisory problem exists at the lowest levels
of management due to excessive numbers of people in the units.
7. Over-titling the lowest units may flatter egos and serve
as a false argument for higher grades, but it serves no useful
purpose. On the other hand, at the lowest levels it may do no
great harm. It is at the higher levels in the division that the
distortion becomes serious. The Procurement Division needs a
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full-time, qualified deputy with responsibilities covering the
whole range of division activities, and the failure to designate
such a deputy tends to weaken the management structure between
the Director of Logistics and the branch- or section-chief level.
It is recommended that: No. 20
The Director of Logistics promptly designate a deputy
chief with appropriate responsibilities for the full range
of Procurement Division activities, redesignate the posi-
tions of deputy for contracts and deputy for purchases as
chiefs of a Contract Branch and a Purchasing Branch, respec-
tively, and redesignate the subordinate units as sections
rather than branches.
8. During the past four years four persons have served in
the position of chief or acting chief of the Procurement Division,
and six in the position of deputy or acting deputy for contracts.
The position of deputy for purchases during the same period was
stable with one man serving the entire period. At the time of
the survey the deputy chief for purchases, without an assistant
in that position, was also serving as acting chief of the division.
Both the deputy for contracts and his assistant were in an acting
capacity. In the seven branches under the two deputies three of
those in charge were on an acting basis, with one serving as chief
of one unit and acting chief of another.
9. The Director of Logistics faces a difficult problem in
handling personnel assignments in order to meet demands for over-
seas positions and priority programs. It is obvious that in the
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past he has chosen to sacrifice continuity in his headquarters
organization to meet the demands of other components. The Director
of Logistics' reputation for meeting deadlines and crash demands
is noteworthy and we do not disagree with the principle which
appears to underlie the compromises which he has made in the past.
However, for the future we believe it imperative that he assure
continuity of management between him and branch and section chief.
Indiscriminate or excessive use of acting positions tends to
weaken management and discourage leadership.
It is recommended that: No. 21
a. The Director of Logistics promptly review assignments
made on an acting basis in the Procurement Division and con-
vert all to regular assignments except those which can be
clearly identified as necessary for short and specific
intervals.
b. The Director of Logistics regulate the assignment of
key personnel in the Procurement Division so as to provide
continuity in management.
25X1A1 1 B
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25X1A11B
11. In the Productions Contracts Branch and the Research ana
Development Contracts Branch, the division of work among contract
negotiators is based primarily on the Agency component originating
the requirement. This arrangement takes into consideration the
special needs of components such as the Office of Communications,
TSD, etc. The Contracts Administration Branch divides its work
according to the geographic areas of the United States to reduce
travel. The Inspection Branch of Procurement Division, which is
more of a technical or materiel advisory staff than an inspection
unit, has responsibilities which necessitate field visits; the
Security Staff of the Office of Logistics must visit contractors'
installations; and the Audit Staff of the Office of the Comptroller
must make field audits. Representatives of the component origina-
ting the requirement such as Communications and TSD make exploratory
and follow-up visits to the contractors.
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12. There is no ready way to determine the number of man-visits
to all contractors in a year. Over 1,300 contracts are under adninis-
tration with some contractors having more than one. This does not
include fixed-price contracts and purchase orders where no admiffs-
tration is required. There are hundreds if not thousands of visits
to contractors throughout the United States each year with a variety
of individuals, representing different components and different
viewpoints, making the contacts.
13. The factors of security and costs are recognized, but what
is not generally recognized is the public relations aspects cf these
visits. Most of the visits relate to the contractors' pocketbooks,
i.e., the profit incentives of private enterprise. The contractors
have access to their congressmen, state officials and the press.
Different individuals from different components with different
objectives calling on the same contractors are a potential source
of trouble.
14. Yet the visits are essential in the Agency's business.
Agency components responsible for a program must have some freedm
in explorating ways of meeting their needs. The Office of Logis-
tics must handle the contract and equipment and make certain inspec-
tions. The Office of the Comptroller must perform its functions.
We believe that the chiefs of the components concerned must take
the responsibility not only for limiting the visits to those
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essential, but also for the awareness of their representatives of
the public relations aspects of dealing with contractors. Agency
representatives must be emissaries of good will.
15. Procurement Division has made a reasonable effort in
limiting contractor visits. About
25X1 of over
contracts out of the total.
require full administration. Negotiation, inspect Lon
25X1
and administration during Fiscal Year 1960 requiredrifield trips 25X1
25X1 for visits to Ti contractors . The division knows that many of
the contracts are too small to be of real interest to large com-
panies and that the good will of the contractors is important.
16. In some casesthe Agency must persuade contractors to
accept work. Branches responsible for administration, termination
and settlement of contracts are separate from those responsible
for negotiation. This provides an additional safeguard of the
interests of the Government beyond that provided by the Comptroller.
Reorganization of Procurement Division could theoretically reduce
the number of individuals visiting single contractors. However,
we believe that the division is being effective in holding down
the visits and that the present arrangement is reasonable and
practical.
17. The responsibility for visits to contractors rests with
DD/I and DD/P as well as DD/S units. In some respects, repre-
sentatives who are exploring solutions to Agency problems and who
"NW
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are not trained in negotiation of agreements between the Government
and private industry represent a greater hazard to good relatioml
with contractors than representatives of the Office of Logistics.
We believe that subordinate DD/S, DD/I and DD/P components shoula
accept responsibility for the public relations as well as securi-v
and costs of contractor visits.
It is recommended that: No. 22
a. The Deputy Directors confirm to the chiefs of their
subordinate components their responsibility for the security,
cost and public relations aspects of visits to contractors
and potential contractors, and
b. The Deputy Directors direct the chiefs of their sub-
ordinate components to report to the Director of Logistics
any significant developments in the Agency's relations with
contractors or potential contractors.
18. The Director of Logistics has delegated procurement
authority and designated contracting officers in accordance with
the authority delegated to him by the Director of Central Intel-
ligence. The Procurement Division periodically reviews the
procurement activities of the
25X1A6A
Procurement Office, the
and the Office of Operations. In Headquarters some
components have authority for use of imprest funds. The division
the
25X1A6A
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It is recommended that:
No. 23
The Deputy Directors authorize periodic reviews of
direct procurement activities of components under their
jurisdiction and the Director of Logistics assume responsi-
bility for the periodic reviews as specified from time to
time by the Deputy Director (Support).
25X1
Administrative Control Staff
20. The Administrative Control Staff with a Tb O of is 25X1
under the supervision of a former intelligence analyst, GS-12.
This staff reviews and edits all regulatory issuances affecting
procurement, prepares staff studies and statistical reports,
digests and consolidates the monthly accomplishments and objec-
tives memoranda of all division components, and prepares for-
warding memoranda for the division chief's signature. At speci-
fied periods it helps prepare the Procurement Division budget.
21. A $3,500 electrically operated multilith machine was
installed in 1958 for use by all components of Procurement
Division and responsibility for its operation and maintenance
assigned to the Administrative Control Staff. This machine is
both a luxury and a headache, since 90 per cent of reproduction
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requests number in tens instead of hundreds. Printing Services
Division has refused to set up a machine for such small runs.
The single operator (a GS-4, in grade since 195)-i-) is the only
person willing to submit to its messy operation and frequent
cleaning. While several women in the division are qualified to
use this equipment, no one will venture near it voluntarily and
during extended absences of the regular operator all requests
for multilith printing stack up awaiting her return.
22. The multilith machine should be replaced by other equip-
ment. Satisfactory equipment is available at a much lower cost.
The elimination of an objectionable and distasteful task and the
inherent personnel problem warrants reasonable replacement costs.
We suggest that the Director of Logistics direct the chiefs of
the Procurement and Printing Services Divisions to present a
solution to the small-lot printing problem.
23. By far the most important function of the Administrative
Control Staff is the control exercised over procurement actions
initiated by Supply Division and follow-up action taken to assure
delivery. Procurement action depends on many factors and may be
handled well under a number of different requisition routings.
For instance, what might be handled as a procurement action by
the Interagency Procurement Branch and levied on the Armed Services
today might under certain conditions be assigned to Special Projets
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Experience appears
to be the best teacher in this regard and sufficient flexibility
exists between the Administrative Control Staff and procurement
and contract officers in the division to transfer action if another
procurement source appears to offer advantages.
24. The purpose of screening all requisitions (Forms 88) at
a central point, in addition to establishing control over procure-
25X1A1 1 B
ment action, is to ascertain the degree of required,
check deadlines established by the user, and verify and record
the correct disbursement authority under applicable vouchered or
unvouchered funds. The deadlines for delivery appearing on the
face of requisitions often are so unrealistic as to disclose total
ignorance of procurement procedures on the part of the requisi-
tioner and approving authority. The pressures created by unrealis-
tic deadlines disrupt normal procedures, encourage sloppy adminis-
tration, create consternation at all levels and add to the cost
of the end-product.
25. The lack of appreciation of supply discipline on the
part of most operators is appalling and is tersely expressed in
a cliche over the desk of one procurement officer: "The person
who knows it can be done is the one who doesn't have to do it".
This does not imply that Procurement Division is indifferent to
the demands made upon it. On the contrary, Herculean efforts
are made, regardless of costs, to achieve the desired results.
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26. As a result or reorganization of the Office of Logistics
in 1955 the technical library, which had formerly existed as a
separate component, was assimilated as part of the Administrative
Control Staff and the chief librarian's slot (GS-12) transferred
to the Chief, Administrative Control Staff.
27. The library was set up separately from the main CIA
library in 1953 to meet increasing demands from the Planning
Staff and contract and procurement officers for quick reference
material from commercial and military supply catalogues, trade
magazines and bulletins. Its facilities are used by all Agency
components. The original staffing authorization included a chief.
GS-12; an assistant, GS-11; two trained librarians, GS-9 and GS-7;
and a clerk/typist. Reorganization and personnel cuts abolished
the two top grades and the library now is functioning well under
a GS-9 (formerly with Documents Division/ORR); two self-trained
assistants, GS-7 and GS-5; and a GS-3 clerk/typist.
28. Time-consuming research is required when original requi-
sitions or cable requests inadequately describe an item or limit
its purchase to a specifiF brand or manufacturer who may no
longer stock the product or may be unable to meet Agency speFi-
fications or delivery requirements. The rigidity of stock control
nomenclature contributes to unnecessary delay in procurement. We
believe that the Office of Logistics should explore means of
gaining latitude in selection of substitute items.
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29. A card index file is maintained on approximately
commercial companies from which the library has received one or
more documents. Alphabetically arranged by vendors' names and
addresses, the file assists in locating the document within the
library. Additional data is entered on the card indicating the
purchase order number, date and catalogue reference of items
purchased. Documents ranging from a single-page price list to
a volume four inches thick are added to the library at an average
of 100 new items a month.
30. The vital documents program of the Office of Logistics
25X1 is limited to listing some
vendors with whom the Agency does
business. There is no provision, however, to preserve the alpha-
25X1 betical listing of all
''11111111F
potential vendors. In order to
re-establish a complete logistics library if such emergency
should occur,
It is recommended that: No. 24
The Director of Logistics consider microfilming the
locator and vendor file as part of his vital documents
program.
31. A formal arrangement exists with the Army and Air Force
for automatic distribution of their supply publications and
addenda to the Logistics library. The Navy furnishes the same
material upon requisition. The scope of the library operation
can be best ascertained from the monthly average of 300 telepho e,
200 written, and 700 personal requests for information.
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General Purchases Branch
32. More than half of the
professionals assigned to
the General Purchases Branch have served continuously in the same
assignment since 1952. Its chief, a 06-13, has had 20 years'
experience in procurement and supply with CIA and its predecessors.
33. Numerically about 40 per cent of all procurement actions
are handled through General Services Administration or Government
Printing Office supply channels under the provisions of Federal
Supply Schedule contracts negotiated by GSA and GPO. These
establish fixed prices for stated periods on 60,000 items which
may be purchased by the using agency directly from the supplier.
34. Moneywise the bulk of General Purchases Branch purchases
are made under Federal Supply Schedule contracts and contact with
90 to 95 per cent of the suppliers or their representatives is
made in the Washington area. The branch chief or his senior
assistant receive two or three visits a day from company repre-
sentatives or contract personnel soliciting purchase orders or
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seeking information on service contracts. The peak of this actLvity
occurs during the fourth quarter of every fiscal year in connecion
with the annual renewal of contracts and last-minute obligation of
funds.
35. Sixty per cent of the actions taken by the General Pur-
chases Branch involve independent contracts with commercial vendors,
institutions for the blind, and procurement of specific items
from Federal prisons. Approximately 200 actions per year invol-re
renewal of service-type contracts for repair and servicing of
electric typewriters, rental of IBM and RCA electronic computer:;
and printing of special forms not used by other agencies and no
obtainable under GPO-negotiated contract. Prior approval of tho
Management Staff (Forms Management) is obtained before a printi)ig
contract is negotiated. Print jobs costing more than $20,000 axe
habitually let under contract to the lowest bidder. Printing work
under $20,000 is accomplished under purchase order without bids.
Five million Agency forms were printed under special contract for
Fiscal Year 1960 at a cost of $177,000 as compared to 2,000,000
printed in 1957 at a cost of $110,000. Rentals on electronic aud
teletype equipment from manufacturers amounts to approximately
$700,000 per year.
36. An imprest fund amounting to $1,000 is used to defray
costs of purchases or services when, in the judgment of the chief
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or senior assistant in his absence, time and labor can be saved
and prompt delivery is essential. During Fiscal Year 1961 approxi-
mately 1,700 actions involving approximately $10,000 paid for
from this fund without the formality of requisition or purchase
order. The Director of Logistics limits use of this fund to
single purchases not exceeding $50 and prohibits its use to defray
transportation (taxi) costs.
37. A modest imprest fund that eliminated 1,700 formal actions
in a single year constitutes a valid argument for greater use of
this tool for procurement.
It is recommended that: No. 25
The Director of Logistics increase the size of the
General Purchases Branch imprest fund and extend the limi-
tation on expenditures to purchases up to $100.
38. There are no rigid areas of procurement responsibility
for procurement officers. Responsibility for procurement of
electronic, communication and photographic equipment is restriced
to two officers, not because they are technical specialists in
these fields, but because they have developed good rapport with
users and suppliers. The same applies to two officers primPrily
concerned with advertising, negotiating and awarding contracts
for automotive repairs, accessories and spare parts, repair of
protective clothing, and laundry service.
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39. Procurement officers must spend an abnormal amount of
time correcting nomenclature of requisitions to conform to sup-
pliers' catalog listing of the product. This often requires
library research. Substitute items are often recommended where
unusual savings can be demonstrated. For instance, a gummed-
tape dispener -- an $85 model under the stock number of the
requisition -- was cancelled by the user when the procurement
officer suggested a $27.50 model that would meet the same
specifications.
4o. Delays in procurement often occur when unusual items
bearing a minimum of descriptive data are requisitioned by over-
seas stations. While the validity of the requirement is seldom
disputed (i.e. a hydraulic nail puller), lack of specifications
as to size make it impracticable for the Purchase Branch to pro-
cure a $165 item such as this without assurance it will fill the
station's needs. Such items are usually cancelled from the
requisition pending receipt of additional data.
41. Hundreds of requests for emergency services such as
cleaning and repair of office furnishings and floor coverings
and minor repairs to office equipment are handled without a
contract. Requests are normally channelled through the Building
Supply Officer to the General Purchases Branch which maintains
contact with 20 or more local service organizations that respond
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to telephone requests without the formality of a work order and
are paid from imprest funds.
42. To perform effectively the General Purchases Branch
must have immediate access to a great variety of buyers' cata-
logs and brochures. This has led to an accumulation of 80 square
feet of shelving space, two four-drawer safes and a number of
desk drawers full of vendors' literature that is duplicated in
the Logistics Library. Since this material is in constant use
we depart from normal policy of criticizing duplication.
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Production Contract Branch
59. The Production Contract Branch is responsible for
procurement of Government- or Agency.
production or 25X1
supply items by advertised or negotiated contract. The branch
25X1A111
also procures items of
if they are not listed in
the Federal Supply Catalog and the total contract exceeds $5,000.
The branch has five contract negotiators and two secretary/steno-
graphers, plus a secretary on loan from the Contract Administration
Branch. All contract negotiators have college degrees in fields
related to their work.
60. Within the branch, a fundamental objective is to give
professional guidance to Agency components on contractual procure.
ment and protect the Agency's interests in the production or modi-
fication of new items. This is achieved by continuing liaison
with the Agency's technical components. Work is assigned on an
Agency component basis. One negotiator is assigned to procure-
ment requests of the Office of Communications, another handles
TSD, and a third handles the requests of OCR, ORR, OTR, and Supply
Division, OL. In addition to his supervisory duties, the GS-14
branch chief also helps in contract negotiations work.
61. The branch chief has been authorized to execute procure-
ments up to $25,000. Procurements between $25,000 and $100,000
must be approved by the deputy for contracts. Procurements above
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$100,000 must be approved by the Director of Logistics. All
procurement actions are subject to review by the Procurement
Review Committee.
62. Four basic types of contracts are used for most procure-
ment. They include: (a) fixed-price, the most prevalent; (b)
fixed-price-redeterminable, with variations such as downward-only
or incentive redetermination, which permit audit and adjustment
of prices on varying formulas; (c) time-and-materials, used mostly
for maintenance jobs; and (d) cost-plus-fixed-fee.
63. Branch records show a workload that has been steadily
increasing each year. In the first half of Fiscal Year 1960, the
branch handled 309 requisition actions with a total value of
For the same period in Fiscal Year 1961, the branch
handled 399 requisition actions with a total value of
While the total represents an increase of approximately 31 per cent
the actual increase on the headquarters branch is less than this
since some of the actions were referred to the West Coast Procure-
ment Office.
64. The biggest problem of the Production Contract Branch is
the large increase in activity at the end of the fiscal year. Th3
magnitude of this increase can be realized from the following. In
Fiscal Year 1960 requisition actions handled by the branch number:A_
25X9A2
709 with an accrued total value of . For the month of
June 1960, however, the branch handled 196 procurement actions for
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Obviously this concentrated volume
of spending produces a marked effect on branch operations. The
effect liked least by contract negotiators, however, is the knowledge
that they just do not have enough time to do their jobs as thoroughly
as they can during the normal workload period. There have been no
reported incidents where a poor contract has been placed or too
high a price paid due to this rush, but the nagging fear remains
that this will happen if given enough opportunity, and the Agency
is providing opportunity each year.
65. This problem of June spending is not unique to the Agency,
but it is an area where overall improvement can be made. Current
Agency efforts to cut down the rush take the form of a notice,
dated 15 February 1961, which states that procurement
actions for certain supplies must be submitted to the Office of
Logistics not later than varying dates, the earliest of which is
1 March. This notice has had no apparent effect in reducing the
year-end rush.
Research & Development Contract Branch
66. The small Research and Development Contract Branch incltdes
three contract negotiators at grades GS-14, GS-13, and GS-121 pits
two secretary/stenographers at grades GS-6 and GS-5. All hold
the grades of their T/0 position, and all professional personnel
hold college degrees.
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67. The workload is distributed as evenly as possible among
the three negotiators and each officer specializes in contracts
for Agency component(s) assigned to him. In this fashion the
negotiators develop personal relationships with their designated
components and understanding and respect for the problems of both
parties are developed. A further practical gain results from a
cyclic process natural in research and development work.
a contractor is selected on the basis of anticipated competency.
Agency components tend to repeat with contractors who now have in-
creased competency and background knowledge of Agency requirement;.
This assists the contract negotiator since he gets to know the
contractoris personnel, administration, and performance.
68. For Fiscal Year 1960 the branch placed 450 contracts with
r5X9A2
a total value of
This year the number of-contract
actions and dollar values are keeping pace with last year.
69. Ninety per cent of contracts placed by the branch are of
the cost-plus-fixed-fee type. Approximately 5 per cent are of
the fixed-price type, and 3 per cent are based on time and material
costs of the contractor; these latter usually involve a non-profit;
organization. The remainder of the contracts will be handled by
grant of funds to a non-profit organization. Use of the grant
for Government research and development work is relatively new
as it was only authorized by the 85th Congress. Due to the lack
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of control in this means of accomplishing Research and Developmen-,
work, approval in writing is obtained from the Deputy Director
(Support) prior to making each grant. The branch chief is the
designated Agency contracting officer for all research and develop-
ment tasks performed outside the Agency.
70. Performance on a research and development contract cannot
always be clearly defined and inability to perform the task cannot
always be considered as simple proof of failure. This simple fact
brings about a curious situation. Technically, the branch is responsi-
ble for the selection of the contractor for Research and Develop:rent
efforts. In fact, the Agency component sponsoring the task selects
or designates the contractor. To do otherwise would require a
presumed degree of competence within the branch greater than that
of the task sponsor, and could subject the branch to unjust criticism
should a contractor fail to accomplish the objective. Branch nev)-
tiators, however, report that they have questioned the task orig-
inator's choice on occasions when they were aware of personnel
changes which could affect the contractor's performance. In SOME
instances this has resulted in placing the contract elsewhere
and in others the contract was placed where the originator wantea
it all along.
71. Principal components served by the Research and Develop-
ment Branch report they are pleased with its services. Department
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of Defense contract negotiators operate with far less association
or cooperation with the originator of a research and development
project. The Department of Defense has a higher ratio of failure;
in research and development projects than the Agency. This is
due in part to the Agency's team approach and partly to the fact
that many Department of Defense research and development contract.;
are placed with the lowest bidder without due regard for competen:te
in a particular field. The concept of the task originator and
the contract negotiator working together toward a common goal is
sound.
Contract Administration and Termination and Settlement Branches
72. Instruction No 'dated 3 June 1959, includes
statements of the functions of the Contract Administration Branch
and the Termination and Settlement Branch. Both of these so-called
branches are covered in one section of this report. Contract
administration covers all contractual matters after negotiation
and execution of the contract and prior to final settlement and
termination. It includes consideration of government-owned
property, patents and royalties, special expenditure, sub-contracts
and supplemental agreements.
73. Termination and settlement are actually a part of contract
administration in the broad sense. This phase was placed under
a separate branch chief a few years ago when a backlog of settlerent
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and termination cases accumulated. At the time of the survey the
two branches were separate in name only. The chief of one was
acting chief of the other and one secretary served both branches.
The officer who was primarily responsible for settlement and termi-
nation served as deputy, without title, for contract administratim.
The Termination and Settlement Branch has not survived as a branch
in actual practice.
74. In spite of the confused organizational picture, the work
of termination and settlement is being carried on with professional
competence. The reason is that the activity is being handled and
monitored by a senior GS-13 who is clearly recognized by the acting
division chief as responsible for the work although he has no formal
title as chief or deputy chief of anything. He has the responsi-
bility and knows that he has it. This man has an A.B. from Harvard
and a law degree from George Washington. His experience includes
about five years of private law practice and 15 years of legal
and quasi-legal work with the Government. The position requires
experience and mature judgment and warrants a GS-14 classification.
The position control register of the Office of Personnel shows
termination and settlement as a section and the position of chief
as a GS-14. However, another individual is slotted in the positim.
In practice, the person who is actuRlly responsible for terminatim
and settlement, which warrants a GS-14 grade, is serving as deputy
without title under the acting chief of contract administration, who
occupies a GS-13 slot.
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75. We believe that the Director of Logistics and Chief,
Procurement Division, must unravel the organizational snarl.
We have recommended in this report the redesignation of the
branches under the present deputy for contracts as sections.
In regard to contract administration and termination and settle-
ment, one solution would be simply to recognize the merger that
now exists, whereby the individual responsible for termination
and settlement serves as deputy to the chief of the consolidated
component. This may conserve manpower and save one position.
However, we believe it is preferable to separate the functions
again.
76. The conclusion reached on the original separation had
validity. The Agency must rely on the individual carrying the
primary responsibility for contract termination and settlement
for mature and professional judgment. He must be capable of
excellent personal performance with a minimum staff. He should
have direct access to the Chief of the new contract branch without
subordination to the chief of contract administration from whom
he inherits some termination and settlement problems. His position
should be formally identified by title and statement of responsi-
bility as well as by grade. There will be less risk of personal
responsibility being confused in rotation and reassignments if
the key responsibility is formally recognized.
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It is recommended that: No. 27
The Director of Logistics direct the separation of
the contract termination and settlement function from the
contract administration function, in fact as well as in
theory; clearly identify the individual who carries the
primPry responsibility for termination and settlement as
section chief; and provide a GS grade comnensurate with
the responsibility.
77. Contract administration work is handled by a chief, a
deputy chief serving without title, three contract administrators
and three secretaries. The chief, deputy chief and one contract
administrator have no college degrees but have had practical
experience in accounting and contract administration. Work is
divided geographically, with one administrator handling the
New England area, one the Eastern Seaboard from New England
south, and one handling the Midwest, including the Gulf Coast.
25X1 A6A
Most West Coast work is handled by the
Office with the Midwest contract administrator giving assistance
when Headquarters liaison and discussions are necessary.
78. At the time of the survey 1,327 contracts were being
handled by the unit with the following breakdown by Agency com-
ponent originating the requirement:
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79. The branch chief has made a special effort to reduce the
time required for handling contract administration metters, and
has been effective in reducing the volume of paperwork and record .3.
He has eliminated four formlB and one routine memorandum completely
and has substituted a small simplified form for an elaborate data
record form. His diligence and initiative in this matter is wortAy
of note.
80. Branch personnel write or review contract amendments dealing
with overhead costs. In order to establish a basis for judgment
and to make cost checks the branch maintains files on overhead rates
using data obtained from the Department of Defense, Agency auditors,
and a variety of secondary sources. Some of the contractors involved
are also contractors for the Department of Defense. Attention is
given to the necessity for consistency with Department of Defense
practices.
81. Instruction No. assigned to the Contract Admin-
istration Branch responsibility for Agency-owned equipment used by
contractors. Files have now been transferred to the Inspection
Branch, which has assumed responsibility for keeping track of this
equipment. The Contract Aftinistration Branch and the Termination
and Settlement Branch handle disposition of Agency property with
the technical advice of the Inspection Branch. Personnel with
technical background or extensive materiel experience are better
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qualified for inventory of Agency property than contract admin-
istrators. The contractors are in a position of advantage over
the Agency when they offer to buy this property at disposal price:;..
82. Responsibility for Agency-owned equipment is divided
among the Contract Administration Branch, the Termination and
Settlement Branch, and the Inspection Branch. We believe the
responsibility should be clearly placed with one component.
It is recommended that: No. 28
The Director of Logistics assign the Procurement Divi-
sions responsibility for Agency-owned equipment to the
unit now ter.med the Inspection Branch.
Inspection Branch
83. Although its language was ambiguous,
made the Director of Logistics
apparently
responsible for plant inspections
to determine capabilities and find new supply sources, work-in-
progress inspections to make sure a contractor is meeting spec-
ifications, and inspections of equipment or materials left over
on termination or cancellation of contracts. Within Office of
Logistics these tasks were assigned to the Inspection Branch of
25X1 Procurement Division by [which further charged the
branch with advising on the technical aspects of specifications,
work descriptions and production techniques. This instruction
said that the Inspection Branch should "perform or assign responsi-
bility" for material inspection under all Procurement Division
contracts.
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84. These descriptions of functions were misleading, but the
possibility of confusion has been compounded by rescission of
and substitution of
which does not even mention 25X1
inspections. Actually, about 97 per cent of all inspections are
performed by the Agency components ordering the goods or services --
over half by the Office of Communications, and most of the remainler
by the Technical Services Division, DD/P. In Fiscal Year 1960
there were 1,103 procurement actions possibly subject to inspectim,
but the Inspection Branch made only 27 inspections itself. Gener-
ally speaking the customer provides the money, knows what he wants,
and insists on inspecting it himself. Indeed, the technical services
by now are so accustomed to performing their own inspections that
they probably assume they have the right to do so, whether or not
Office of Logistics formally delegates this function to them.
85. The Inspection Branch provides an essential service in
keeping track of inspections performed by others, but it is obvi-
ously not able to carry much of the inspection load itself. The
branch totals three men and two women. Two of the men have
bachelor's degrees in mechanical engineering and the third in
electrical engineering. One of the women is the branch secretary
and the other is a GS-7 procurement assistant who has risen from
the clerical ranks. Three of the five have transferred to Office
of Logistics from Office of Research and Reports since August 1960,
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the fourth is a Navy lieutenant commander detailed to the Agency,
and only the female GS-7 has long experience in the Office of
Logistics. All work hard and appear competent, but they cannot
pretend to cover the broad range and heavy volume of inspections
for which the Director of Logistics is technically responsible.
It is recommended that:
No. 29
The Deputy Director (Support) supplement with
an agreement recognizing the right of technical components
such as the Office of Communications and TSD to perform
their own technical inspections and assigning to the Directo:-
of Logistics only a monitoring and recording function in
such cases.
86. The above recommendation would only regularize a system
which already is working well in practice, since over 90 per cent
of all inspections are delegated automatically to the Office of
Communications and TSD. It would retain in Inspection Branch the
task of keeping the inspection records which Procurement Division
must have to authorize payment of contractors.
87. The branch makes at least a quick check of requisitions
25X1A1 1 B
. Without claim-
involving research and development
ing to be the final authorities on all subjects, branch engineers
can often suggest improvements in technical wording and relay
leads to possible suppliers. The engineers learn about contrac-
tors' capabilities in their routine liaison with other Agency
components and in exploratory plant visits they make during
inspection trips. The branch also is the point of referral for
industrial or commercial representatives who approach the Agency
cold to solicit business.
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88. The Inspection Branch's suggestions about a contractor
and his capabilities are strictly advisory. Usually it is the
customer, and not Office of Logistics, who determines where the
contract shall be placed. Often a representative of Office of
Communications or Technical Services Division already has dis-
cussed the details and even cost of a project with a specific
company, and the contract placed through Procurement Division
only formalizes an arrangement already worked out. Under such
circumstances competitive bidding is impossible, especially if
(as sometimes happens with TSD) the customer insists on designa-
ting the contractor. The most Inspection Branch can do is present
its views to higher levels in Procurement Division.
89. It would perhaps be bureaucratically sound to recommend
that other Agency components describe what they want and Office
of Logistics decide who shall supply it. Such a plan would
require Office of Logistics to duplicate the know-how of its
technical customers. The present system works and keeps the
customers happy, and it should not be changed just because it
requires tongue-in-cheek interpretation of directives which state
that Procurement Division shall "supervise, direct, and plan
for contracting activities of the Agency."
90. The secretary keeps a card file of contractors arranged
geographically by states to help the engineers plan their inspec-
tion trips. In the first seven and a half months of Fiscal Year
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1961 branch personnel made 12 inspection trips totalling 65 man-
days away from Washington. Most inspections were related to the
125X1A11C
Inspections consist of checking production
or progress against contract specifications, and the inspectors
have found contractors quite reasonable in accepting suggestions.
91. As of February 1961 the Inspection Branch assumed
responsibility for keeping a record of Government-owned equipment
furnished to contractors. This function previously had been
assigned to the Contracts Administration Branch. Information is
filed on Form 278 (Property Record Form for Contractors), which
is required for all equipment valued at over $50 and used volun-
tarily for many items under this amount. A recommendation on
transfer of responsibility for Agency-owned equipment to the
Inspection Branch has been presented in Paragraph 82 of this
report.
92. The GS-7 procurement assistant spends much of her time
expediting" performance, which means checking on delays and
I?
discrepancies. She is a bright 24-year-old high school graduate
who joined Office of Logistics in 1954 as a GS-3 typist and
handles a difficult job surprisingly well. However, she has no
technical background and when contractors explain their diffi-
culties in technical terms she can only write down and relay
their comments. The Office of Logistics middleman between
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customer and contractor should be a man with a general technical
background. This suggestion in no way reflects on the young
woman now doing this work, who already has been recommended for
promotion and whose excellent pinch-hitting should be recognized.
It is recommended that: No. 30
The Director of Logistics establish in the Inspection
Branch a GS-11 position for a materials expediter and fill
it by transferring an experienced Logistics careerist with
a general technical background.
93. Procurement Division needs personnel with technical or
materiel backgrounds to support the work of those with legal and
business backgrounds. We believe it is preferable for them to
be organized into a unit rather than spread throughout the divi-
sion, but whether they work as a staff or branch is not important.
The term "Inspection Branch" is something of a misnomer and shoulc
be changed, but of more importance is that the true role of the
unit be reviewed and a revised statement of functions issued.
The branch chief presented a review of functions and a proposal
for future activities, dated 3 February 1961, which should be
given consideration.
It is recommended that: No. 31
The Director of logistics issue revised instructions
of the functions and organization of the unit now termed
the Inspection Branch.
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hours, the key to the box was kept in a desk drawer, and three
members of the staff withdrew money from the box as normal pro-
cedure and others upon occasion. Records of withdrawals were
carefully kept and the records and cash checked about every two
weeks. No discrepancies had ever been noted. The faulty procedure
was called to the attention of the staff chief. Corrective action
was taken whereby a single individual at any one time has responsi-
bility for the cash box.
It is recommended that: No. 35
The Director of Logistics instruct the Chief, Procure-
ment Division, to check periodically the practices of the
25X1A8A
lin the handling of cash, to insure
compliance with regulations.
117. Secondly, the crash procurement system raises a series
of questions. How much of this last-minute buying might have been
avoided by proper planning and stocking? Why is it necessary to
run to a single camera shop three or four times a week? Why is
the requisitioning and issue of equipment so often delayed until
an unanticipated shortage in the warehouse forces the Office of
Logistics to resort to crash purchases? Could crash purchases be
reduced if case officers were willing to accept substitute items
already in stock? What items are most often sought at the last
minute?
118. The
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can give no better than off-
hand answers to these questions, and its files are not organized
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to permit an analysis. We believe that the staff should make a
study of its crash procurement over a representative period to
see whether there is a discernible pattern of last-minute requests
either for particular items or from particular customers. If
certain items recur, their warehouse stock levels should be
raised. If a few specific customers place most of the hurry-up
orders, perhaps they could be persuaded to anticipate their need3
or accept substitute items. The crash purchase system is a practi-
cal solution to emergency problems, but it is neither as efficient
nor as secure as routine procurement. It should not become a handy
substitute for proper operational planning.
It is recommended that:
No. 36
The Director of 10407WWWinake an analysis of over-the-
counter purchases by A Ito see if they
warrant increasing regular stocks of some items or attempt-
ing to educate recurring customers.
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Depot Purchasing Services
25X1A6A 14-0.
25X1A6A
and the
are operated by Supply
Division and have dual supply and procurement missions. A general
discussion of their budget, functions, facilities and personnel DS
included in the Supply Division section of this report, pages 162-6.
The paragraphs below refer only to procurement activities, which
account for Tmich of the day-to-day effort of the seven Office of
Logistics
25X1A6A
employees at the depots.
purchases are chiefly in support of
FE, stations, which may place orders directly or through Headquarters.
In a typical month the depot may receive about 150 requisitions
covering 700 to 800 line items and totalling $45,000 to $55,000.
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Most of these orders come from 10 tit Stations having
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the depot serves directly only stations whose correspondence
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can flow through the U.S.I I. In a few cases the
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station may have ordered from Headquarters, which determined that
25X1A6A
the item was available on the
and forwarded the requisf-
tion to the depot. In either case the depot procures and packs
the item locally and ships directly to the station, usually saving
transcontinental shipping costs and often simplifying administr-
tion.
142. The
pot is authorized to spend up to
whose
2gn;146A
$2,000 per line item for any station except
is $10,000. Within these limits, and excepting controlled-issue
items, the stations may order from the depot pretty much as if it
were a mail-order house. Normally Headquarters learns of the
orders only after the depot has sent its monthly report to Supply
Division. Although much of the traffic is in household effects
and TSD or office equipment, it has included everything from
oscilloscopes to wire rope, band saws, and bovine serum.
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may fill requisitions from stocks on hand, order from stocks on
hand, order from industry, or obtain items from other government
125X1C4A
agencies in the area.
5X1C4A
144. Unusual items, urgent orders, and simple orders under
$50 may be handled entirely by the depot and paid for either from.
petty cash or from a $1,000
fund. For ex-
ample, if a station needs a small refrigerator part in a hurry the
depot procurement officer may buy
and ship it by parcel post to the
it over the counter, pay cash,
25X1C4A
phe same day. The
depot chief estimates that the "Buy American" program already has
increased this type of procurement by 4o per cent.
145. One of the chief justifications for a procurement program
25X1A6A
on the
is that it cuts red tape and gives fast, direct
service to FE stations. The depot is doing its best to meet these
objectives, but for reasons beyond its control its performance
sometimes does not look good to the stations. 1, for
example, serves all its orders
have an item it requests procurement
may in turn relay the request to the
If
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not doesot
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which
action from
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By the
time the depot gets some requisitions it is already too late to
give the station fast action.
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146. Also, field personnel may not be aware of the complica-
tions involved in buying even apparently simple items. The follawing
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procurement action, picked at random from files,
might be studied as a case history by field employees who expect
instant service:
a. On 25 August 1960 a field station prepared a requisi-
tion for five resistors of one type and eight of another. IL
estimated their total cost at $13 and asked delivery by 25
September.
25X1A6A
b. On 16 September the I received the
order and wrote to the manufacturer asking him to ship imme-
diately if the cost was $30 or less.
c. On 4 October the manufacturer replied quoting a price
of $67.60 for five resistors and asking more information on
the other eight, which it could not identify. The manufacturer
estimated 45-day delivery on the five.
d. On 7 October the depot sent the manufacturer a F--1
order form covering the five available resistors, with a copy
1C4A
tol so it could obligate funds. On the same day it wrote
to the field station quoting the revised price and asking
further identification of the other resistors.
e. On 30 NoveMber the depot telegraphed the manufacturer
asking why the five resistors had not been delivered.
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f. On 6 DeceMber the manufacturer telegraphed an apo1o;17
and said the goods were en route. His invoice, mailed to tae
depot, was dated 8 December.
g. On 16 December the depot received five resistors and
1C4A
pb informed on a purchase order slip. It then made up
shipping documents, annotated its own copies to serve as a
receiving report, and sent the resistors to the field.
h. Some time in February 1961, according to a notation
25X1C4A
on retained shipping documents, r--1 paid the manufacturer
$67.60.
i. On 15 February 1961 the depot again wrote the field
station asking for either further identification of the
eight remaining resistors or permission to cancel that part
of the order. As of mid-March, the depot had received no
answer.
147. None of the above delays and complications on what
started as a simple $13 order can be blamed on either nor the
25X1A6A
yet we suspect that the field station may have
grumbled about red tape and glow service. Actually, this case
only illustrates that customers must provide better cost estimates,
better identification of the items wanted, and more realistic
delivery dates. This report already includes several general
recommendations designed to increase operational employeest
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understanding of the logistical facts of life. More specific
action should be taken where a depot purchasing officer is in
direct correspondence with stations abroad.
It is recommended that:
No. 4-1
The Director of Logistics prepare an informal sanitized
memorandum on efficient use of direct purchasing services, ctit-
ing examples of delays such as given above, and send the MeA0-
randum to all stations using the services.
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25)
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151. Procurement actions for stock replenishment are negli-
gible and automotive maintenance, packing and crating are steadiLy
declining with the reduction in Agency population. Procurement
7SX1A6A
actions in support of the l are small and for January
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and February 1961 amounted to five line items totalling $394.90.
Procurement action on one of these Items, a $298 Thermofax machire,
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D. SUPPLY DIVISION
1. The Supply Division is the Agency's storeroom. Its furc-
tion is to store, keep track of, repair and issue nearly all the
goods and equipment used in Headquarters and field operations, from
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pens and pencils to
2. The division chief is a senior GS-16 with long Agency and
management experience. Because its facilities are widely scattered,
the division has two deputy chiefs: a deputy for operations whe
is responsible for physical facilities and daily operations, an
a deputy for supply management who concentrates on management,
systems and procedures. One of the three top officers is usually
away from Headquarters.
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furniture and other equipment bought especially for the Langley
Building.
9. Like a commercial warehouse, Supply Division is prima-
rily engaged in storing and shipping goods. However, its work
is complicated by a great many factors peculiar to this Agency,
including:
a. The world-wide scope of operations and the broad
range of supplies required.
b. Small and odd-quantity orders which prevent adoption
of standard units of issue.
25X1A11B
c. Special packaging for or for unusual de-
livery.
d. Piecemeal rush orders under operational pressure.
10. Supply experts measure work by "line items," each of
which may be any number of identical units described in a single
line of a requisition. One requisition, for example, would total
two line items if it asked for a gross of pencils on one line and
eight desks on another line. Agency supply catalogs list about
100,000 line items, of which about half are carried in stock at
25X1A6A
the and the others are ordered as needed. The
depot averages about 55,000 line items packed and shipped per year.
11. One of Supply Divisions management problems is decid-
ing which items should be ordered in advance and carried in stock,
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and which should be procured only against an existing requisition.
Another is stock purification, or the elimination of obsolete
items which occupy storage space but will never be used. In the
intelligence business these problems can be tricky because the
newest and best equipment often will not meet security and
needs. Division officials study previous issue records and confer
with operational personnel, but many of their decisions must be
based on pure hunches. Nevertheless, they are making some progress.
Three years ago 60 per cent of procurement was from outside
suppliers and only 4o per cent from stock, but by early 1961 the
division was filling about 53 per cent of requisitions from stock.
12. In general, the inspecting team was favorably impresset
by the division's personnel, organization, methods and facilitiee.
Especially noteworthy were the excellent supervisor-employee
relations and the entire organization's obvious eagerness to
deliver the goods regardless of obstacles, extra work, and a pay
scale in many cases lower than might be expected.
Field Support Staff
13. The Field Support Staff, reorganized during this survey,
is one of the two staffs attached to the office of the division
chief. Its general purpose is to provide policy and technical
assistance. It studies regulations, plans, methods, and pro-
cedures which apply to more than one part of the division, and
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in these matters it gives headquarters support to field depots.
The division training officer is a member of this staff.
14. Two small specialized groups have been incorporated into
the staff. The first is the two-man Storage Operations Section
whose job is to study packing and packaging methods and materialt
and apply them so as to save money, reduce damage, or simplify
storage and delivery. The section chief has done this work for
more than 20 years and keeps abreast by attending packing exposi-
tions and reading the trade press. Both he and his assistant
25X1A6A
spend much time at the seeing new ideas put into
practice.
15. Another part of the staff is the Air Maintenance and
Support Section manned by two aircraft technicians left behind
when the 20-man Air Maintenance and Supply Division was broken
up in 1958. This section is Supply Division's point for coordinat-
ing maintenance and modification of DPD aircraft. The technicians
25X1C4A
keep in touch with both DPD and thel
125X1C4A
1 Routine procurement for
maintenance and servicing is handled through the Interagency Pur-
chasing Branch of Procurement Division. Structural modifications
and installation of special equipment may be handled under
contracts with independent suppliers.
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16. In addition to its supply functions the section does
some work of the kind normally considered procurement, such as
translating requisitions into contractors' language and administer-
ing sensitive contracts by mail through a post office box. It is
hard to decide whether the unit belongs in Supply or Procurement
Division. The Office of Logistics already has considered this
question and decided to leave the unit where it is. We agree,
since the present arrangement appears to be working satisfactorily.
Inspection and Inventory Staff
17. Under the direction of a GS-13 Logistics officer who
reports directly to the Chief, Supply Division, a small inspec-
tion and inventory staff schedules and supervises the physical
inventory of stock at all major supply installations, prepares
reports of inventory adjustments, conducts inspections for compli-
ance with Supply Division directives, reviews the audit staff
reports of field station property accounts, and contributes to
research in the development of modern inventory techniques. The
staff has a T/0 of four professionals and two clericals, but as
of May 1961 temporary details had out it to half this size.
18. Under normal conditions, 60 per cent of the time and
effort of the staff is devoted to physical inventories and rendi-
tion of inventory adjustment reports. A goal continually sought
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after but never actually achieved is to complete the physical in-
25X1A6A
ventory of all in-stock assets maintained at the
25X1A6A
the
and at
or
an annual basis, and to perform the inventory adjustment of in-use
stocks whose inventories have been performed by the custodians of
50 additional Headquarters accounts during the same period.
19. To accomplish this a 10-month inventory cycle has been
devised based on the total number of items to be inventoried and
the number of items a two-man team can inventory in a single
work day. It takes two two-man teams six to eight months to
25X1A6A
complete the physical inventory of the alone,
depending on the status of stocks and operational activity.
20. Unlike most federal components, this Agency is unable
to curtail supply activities or close its warehouses for any
appreciable period to conduct inventories. This explains to
some extent why major inventory discrepancies are usually traced
to documents that are in process during the inventory rather
than actual physical shortages or overages.
21. For instance, the report of inventory adjustment per-
taining to Group 7 supplies (office furniture and office equip-
25X1A6A
ment) at thel 'inventoried in December 1960 in-
cludes the following statistics: dollar value of opening inven-
tory,
number of Items inventoried, 2,018; number of
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items adjusted, 434; dollar value increasing adjustment, $38,184;
dollar value decreasing adjustment, $50,589; net shortage, $12,405,
75XAA7
or I 'of the opening inventory. Of the 434 items
requiring records adjustment, 199 ranged from less than $1 to under
$10 in value, and for each item the adjustment was under 5 per
cent of the total value of the item inventory; 88 items were with-
in the $10 value but exceeded 5 per cent of the total value of the
items in question; and the remaining 147 items exceeded both the
$10 value and 5 per cent of the total value of the items under in-
ventory.
22. The cost of inventory adjustment of items of small value
ofttimes exceeds the cost of the original item. The Chief of
Ordnance Department of Army, has recognized the false economy
involved and on 1 January 1961 introduced what is called a
statistical-sampling inventory method designed to control the
number of physical inventories of scheduled items based on
statistical analysis of past inventory records. For instance,
miniature transistor radios might be scheduled for physical inven-
tory two or three times a year, while a 155-mm howitzer would
require inventory only every five years. At the time of a
physical inventory, the Army considers an item discrepant when
one of either of the following factors exists: (a) the value of
the overage or shortage is in excess of $10; or (b) quantity of
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the overage or shortage is in excess of 5 per cent of the total
value. We believe an appreciable saving in manpower and record-
keeping could be achieved if a similar method were incorporated
into the Agency's inventory system.
It is reCommended that: No. 14
The Director of Logistics examine the practicability
of adapting the statistical-sampling inventory method to
Agency in-stock assets.
23. At the very incept of Agency supply procedure the im-
practicability of maintaining accountability on all assets in
use led to a policy which authorizes the accountable officer to
drop from accountability upon issue all items whose unit price
does not exceed $10. The $10 limit was adopted after thorough
appraisal of procedures in use by various federal agencies deal-
ing in assets similar to our own. For instance: The Navy estab-
lished a $50 limit; the Army,
flexible limit between
5; and the Air Forge applied a
5 and $50, depending upon the item.
24. Experience has demonstrated that a $10 limit is un-
realistic and imposes unnecessary work in the maintenance of monthly
status and supply records and the preparation of annual inventory
adjustment reports. The Chief, Audit Staff, is already on record
advocating an increase in the present $10 limit. A survey is
underway in the Office of Logistics to determine the number of
items that would be affected, and the money values involved, if
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the present limit were increased to $25 or to $50. A decision t)
make this change is a matter of internal administration and rest3
entirely upon the Director of Logistics with the approval of the
Deputy Director (Support). Such action is not restricted by law
or by financial property accounting procedures, and property
control on the part of the responsible officers would remain
unchanged.
It is recommended that: No. 45
The Director of Logistics authorize accountable officers
to drop from accountability specific items by class whose
unit prices do not exceed $50 in value.
25. A very profitable exercise is now being undertaken by
the Inventory and Inspection Staff to convert 100 or more Head-
quarters operational accounts into property-in-use or Type-1
accounts in order to establish positive control of the property
involved and bring these accounts into consonance with financial
property accounting procedures. When these operational accounts
were originally set up, items were few in number, they were costed
upon issue, and the items dropped from accountability as Agency-
F25X1 A8A
in-use assets. For instance: maintains more than 10 separate
accounts for its various subdivisions, and in one such account
more than 1,000 items appear. Although item accountability is
maintained on an informal basis, property control under the FPA
system does not exist.
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26. The inclusion of these miscellaneous Headquarters opera-
tional accounts into the FPA system is expected to effect a 50 per
cent reduction in their number, provide better property control
and ultimately bring all in-use property accounts under the FPA
system.
Stock Management and Catalog Branch
27. This branch is the result of a recent rearrangement of
several management functions, prompted in part by the move of
25X1 A6A
production work to the
It also reflects a desire
for increased managerial efficiency. At the time of the survey
the branch had not been given official status but administrative
action for this purpose had begun.
28. The branch is responsible for managerial policy and
planning for the Agency stock replenishment program; for the
control, preparation and distribution of stock catalogs; the
preparation and management of the division operating and stock
replenishment budget; and the control and administration of motor
vehicles.
29. The office of the branch chief consists of two pro-
fessionals and a clerk. The second position is used to employ
the Supply Division budget and fiscal officer.
30. The Stock Management Section has a proposed Tb O of
three professionals and one clerk-t3rpist. Two professional
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positions and that of the clerk are filled, but the section chief
has not been nominated. The delay is due to the temporary assign-
ment of Logistics personnel to special projects. The section
chooses standard items for the supply system, eliminates duplica-
tion of items, and is now in the process of establishing a system
of maintaining stock by "Economic-Order-Quantity" technique.
Fundamentally, EOQ is a precise process of determining stock
levels and its use is proposed in place of the current arbitrari:y
determined stock levels. Properly employed, EOQ will assure ava:1-
ability of items, reduce procurement actions and at the same time
reduce over-all inventory value. The technique is used by several
parts of the Government and the branch chief is certain the system
can be applied to the Agency supply system with savings and no
loss of service.
31. The Identification and Cataloging Section has a proposed
Tb O of eight positions, all but one for professionals. The section
is responsible for the identification, description and cataloginv
of stock items and the publishing and distribution of Agency stock
catalogs. Four persons are employed in the Headquarters technical
unit that identifies, describes, and issues
Two persons of this same unit work at the
stock numbers to items.
25X1 A6A
for the
same purpose and to assist the stock editors in processing requiv,i-
tions. Two persons make up the publication and distribution unit,
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which converts technical data into stock catalogs and distributes
them to Headquarters and field components.
32. The Vehicle Section has a proposed Tb O of three pro-
fessionals. The section is charged with keeping control records
75X11,4C
for all Agency vehicles except those owned by
activities. The section insures that components do not
exceed tables of vehicle allowance established by the Transporta-
tion Division by the simple process of comparing requests against
records. The section also controls a small stock of OSA-procurel
vehicles for quasi-personal issue. This year for the first time
a stock of compact cars has been ordered to see if they will meet
requirements. At the time
25X1A1A
matelyr----lvehicles, procured at an estimated cost of
of this survey the Agency owned approKi-
2X1A1A
Building guyv,y Section
33. The Building Supply Section with a T/0 of 19 and a GS-L1
chief is responsible for issuing, moving and keeping track of mu2h
of the ordinary equipment and supplies used in daily work at Head-
quarters.
25X1A1A
The chief maintains four supply accounts totalling
or roughly 42 per cent of all property in use at
Headquarters. Of this total, is in administrative
supplies such as furniture and office equipment, and
is in technical equipment such as tape recorders or microfilming
devices.
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34. Headquarters property has included everything from 11
television sets to one licensed still, the latter used to distill_
water for the Medical Staff. Among the
25X1A1A
Items are ,ypewriters valued at
25X1A1A
lock file cabinets valued at
25X1A1A
at
most
numerous and costly
25X1A1A
combination-
25X1A1A
desks valued
and
35. In addition to maintaining records of these non-expendable
items, the section operates 11 supply rooms which issue stationery
Headquarters area buildins
and office supplies to employees in
25X1A1A
at the rate of a year. Only two supply rooms have full-
time storekeepers; the other nine are open on a schedule which
permits one storekeeper to serve several buildings, travelling
from one to another by shuttle bus.
36.. Property normally is issued against a simple type of
requisition known as Form 1490 which almost any secretary may
sign. This form helps a storekeeper decide when to reorder shel::7
items from the main supply room in Recreation and Services Build-
ing. For larger items like desks the form is Thermofaxed, with
the original serving as the section chief's record of the desk's
location and the copy serving as a temporary receipt to be pre-
sented by the delivery man.
37. In addition to its regular Tb, the section has a perma-
nent detail of 15 full-time GSA laborers, not all of whom show up
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every day. They unload trucks, move heavy equipment, make
deliveries from one building to another, and help collect classi-
fied trash. These men have limited security clearances and do not
require escorts, but carry only GSA badges and must sign in and
out of the buildings. They work alongside Agency employees; for
example, the regular classified trash detail consists of two
Agency and three GSA employees. At one time this kind of work
was done by regular Agency employees, and the Agency still reim-
burses GSA for the labor crew's wages. There may be some advantage
to having GSA administer laborers who work exclusively for this
Agency; if so, it is balanced by the time wasted travelling from
their GSA reporting point each morning and returning there each
afternoon, and by their long-range identification with GSA rather
than this Agency. It seems probable that reimbursable employ-
ment of GSA personnel was a device used to comply with WO cuts
without actually reducing the number of people working for and
paid by the Agency.
It is recommended that: No. 46
The Deputy Director (Support) review the functions of
GSA laborers regularly assigned to the Building Supply Section
and, unless their work is signficantly different from that
of other Agency laborers, arrange to include them in Agency
tables of organization.
38. Theoretically the chief of the building supply section
is responsible for all non-expendable property in his accounts,
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but this responsibility is sometimes hard to maintain. In general,
items valued at less than $10 are expendable, but even on some of
these the section chief requests memorandum receipts and tries to
protect the taxpayers' interests. This is an almost impossible
task if the user has no sense of responsibility. For example, a
Class A desk-pen costs $14.83 and, as a set, is nonexpendable.
However, the base alone is expendable and the pen alone is also
expendable. About 700 sets have been issued and a substantial
number have disappeared.
39. Supplies known as "take-home items" are an acknowledged
problem to storekeepers who have faced the wrath of a clerk-typist
who wants Scotch tape in mid-December. At one time supply rooms
were issuing cheap ball-point pens at a rate of 4,000 per week.
On balance, the Agency saves money by avoiding the paperwork which
would be required to control these abuses. Nevertheless, a sub-
stantial saving could be realized if a greater sense of responsi-
bility and economy could be instilled in some of the people who
draw supplies.
40. Further savings might be realized from standardization,
but again the consumers' whims increase Agency costs. Supply
rooms are forced to stock several different brands of the same
item; a secretary will accept one brand of carbon paper but re-
fuse another. In some cases consumers have refused Agency supplies
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and either bought their favorite brands from petty cash or submitted
requisitions asking the Office of Logistics to procure a special
item against a consumer's allotment account.
41. A successful experiment is the J Building self-service
room where secretaries may help themselves to stationery, basic
supplies and standard unclassified forms. In four of the more
distant buildings where supply rooms are open only at intervals
the administrative officers keep supply-room keys and may use
them without waiting for a storekeeper. Such shortcuts should be
encouraged in downtown buildings after Headquarters moves to
Langley. The new building will have a single supply room in the
basement, and secretaries may either visit it or send written
orders through the pneumatic tubes and receive supplies by the
belt conveyor and courier system.
42. The section's smallest and perhaps most active account
is for operational supplies such as briefcases, cameras and tape
recorders which are kept at J Building for immediate loan. These
items are intended for operational and temporary issue only, and
their total value is $26,409. Theoretically an employee mRking
a sudden trip may borrow equipment conveniently on a hand receipt
and return it when he gets back. Actually the storekeeper must
keep checking his receipts and telephone borrowers who have not
returned equipment in 90 days. Present plans call for issuing
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operational supplies both downtown and at the Langley building
to assure fast service.
43. Among the "operational supplies" are 121 ordinary suit-
cases valued at $3,877 and lent to any Agency traveller who has
his support officer sign a request. As of 3 May 1961 a total of
85 suitcases were on loan to personnel of 20 Agency components,
and one appeared to be permanently reserved in its original carton
for a senior official. Conceivably, in rare cases there might be
some operational justification for lending a suitcase to a traveler
who must leave from his office with no warning, or who needs an
extra suitcase to carry Agency equipment. Basically, however,
ordinary suitcases are itens of personal convenience and not
operational supplies. Under the present system the principle of
operational necessity has been abused.
It is recommended that: No. 47
The Deputy Director (Support) instruct the Director of
Logistics to procure no more ordinary suitcases and to develop
reasonable standards of operational necessity as a guide for
issuing those remaining in stock.
25X1A6A
44. The
25)1A6A
of Colombia at
7SX1 ARA
located
25X1A6A
from the Distriet
Iand often called the
Warehouse, provides 290,000 square feet of storage space under one
weakened roof. Reference to the roof is pertinent because struc-mral
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defects which became apparent in the heavy snows of 1960-61 have
required extensive bracing with temporary supports which inter-
fere with movement and storage of goods. The building is leased
by GSA from private owners whose engineers are planning complete
replacement of the roof. Even if this is done by sections, it
will require shifting all stocks and will upset operations for
many months.
45. In addition to performing the basic functions of receipt,
storage and issue of 40- to 50,000 line items of equipment per
year and maintenance of adequate stock levels for these items,
this facility also engages in functions not normally associated -with
7SX1A1 B
depot or warehouse operations. These involve
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47. Day-to-day operation of the depot is under a GS-14
field-experienced storage officer. The depot on-duty strength as
-25X1A1A 25X1A1A
of 15 April 1961 totalled General Schedule (GS), and DWage
25X1A1A
Board (WB) employees, agalnst an authorized T/0 of 17-1 Included
in ther--1GS employees werenassigned to the stock-control
section. The table of organization provides for a deputy to the
storage officer to supervise special functions and to be responsi-
ble for administration and management. The deputy also is supposed
to act for the storage officer during his absence. This deputy
slot has remained vacant for more than five months while all depot
facilities have been strained to the utmost in support of a
special project. During this period warehouse facilities were
expanded, additional manpower was hired and trained, and a night
shift introduced to keep pace with the increased workload.
48. The chief is frequently absent on official business
for hours at a time and is forced to depart from sound management
by designating the most available section chief to be in charge.
Thus far the section chiefs have coped with all matters needing
action, but they are neither qualified nor experienced enough to
act in major emergencies during the chief's absence. We believe
the situation should be corrected at the earliest possible date.
It is recommended that: No. 48
The Director of Logistics appoint a qualified deputy
25X1A6A
chief at the 1 without delay.
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49. The major functional units at the depot are a receivint;
and classification section, a document control unit, a material
and support section, a test and inspection unit, a shipping and
packaging section, and a transportation section. They are so
located within the warehouse as to accelerate the flow of supplies
on conveyor systems and a train, improvised from dollies drawn by
tractor, that serves all parts of the warehouse on a schedule.
Experimental and extensive use of labor-saving devices has become
essential due to the cuts in personnel ceilings. There appears
to be ample justification for the proposed installation of mndern
power conveyors to replace the hand-power conveyor systems
currently in use.
50. The packing and crating section and the test and inspe -
tion unit have been subjected to the greatest strain as the result
of rush orders. The introduction of a night shift of 17 men in
December 1960 nearly doubled the production of the packing and
crating section. Night work, though loyally accepted, is generally
disliked by most Wage-Board employees who rotate each pay period
from day to night work, and who complain that the 10 per cent
differential is insufficient to cover the cost of transportation,
the disruption of car pools, and resulting family inconvenience.
51. The night shift was introduced as an emergency measure
and should be discontinued as soon as conditions permit. While
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no night shift requirements have been imposed on other depot
sections, a liberal overtime policy permits a large number of
depot personnel to average 35 to 50 hours' overtime per pay
period. In the year ended 15 April 1961 nearly 18,000 hours of
depot overtime were charged to one project. During emergency
operations overtime is justified, is less costly, and provides
flexibility without increasing personnel ceilings.
52. A minor problem during the 1961 rush was the lack of
any system for measuring the urgency of a requirement. Accord-
ing to the depot chief "everything was priority," yet the depot
obviously could not do everything at once. Faced with conflict-
ing clamors for service, the depot chief was forced to assign
his own priorities or to base the depot packing schedule on
transportation available. His judgment was sound, but he was
making decisions which should have been made by persons closer to
actual operations.
It is recommended that: No. 49
The Director of Logistics consider developing a system
of priority indicators to be linked realistically with
operational urgency.
53. Since 1957 there has been an annual reduction in the
depot personnel ceiling. This has placed a heavy workload on the
remaining workers, most of whom are Wage-Board employees such as
packers, craters, warehousemen, or fork-lift operators. Some of
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them have 12 to 14 years' service with the Office of Logistics aid
hold positions as supervisors. The large majority in grades WB-5 to
25X1A6A
-7 have five to 10 years' service with the A
great deal of versatility and know-how has been acquired by thesE
workers who have rotated through most of the depot functions. BE--
cause of this large reservoir of experienced personnel, Supply
Division has been able to hire sizeable groups of untrained personnel
for limited periods without sacrificing the efficiency of the depot's
operation. As an emergency measure these temporary hirings are
justified. If prolonged beyond the emergency period, they tend to
conceal the legitimate personnel requirements essential to the
accomplishments of the depot's mission. In the instant case,
temporary hirings have contributed to some delay in the develop-
25X1A6A
ment of a more realistic table of organization for the
Depot.
54. Of the few individual complaints encountered during the
inspection, the most frequently repeated was to the effect that,
"I taught so-and-so everything he knows and I don't think he shovld
be promoted when they tell me there are no slots for me to be
promoted." Promotion rumors are rife among these employees.
Opportunities for promotion are few and far between so that each
man takes a prejudiced view of any promotion within the warehouse
when he believes himself better qualified.
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55. A problem of considerable concern to the depot chief and
a source of irritation to all Wage Board employees is the existence
of 31 slant-grade slots (i.e., WB 6/7). Originally the slant
grade was adopted as an interim solution in preparation of a pro-
posed table of organization. The first numeral represented the
current T/0 and the second numeral represented the proposed T/0
grade. This supposedly temporary situation has been allowed to
continue for more than two years without solution.
56. In January 1959 the Wage Classification Division, Office
of Personnel, began to examine and evaluate depot functions to
determine whether the positions should carry the lower or higher
grade. At the same time the Management Staff commenced a study
with a view toward reduction and simplification of recordkeeping,
consolidation of warehouse functions and greater mechanization of
cargo-handling equipment.
57. Final decision on both the organization of work and the
problem of slant grades will require a major effort by the Chief,
Supply Division, to develop new tables of organization. Since
the summer of 1960 rush work has claimed precedence over internal
administration, with the result that development of a revised
table of organization has been delayed. Both Management Staff and
Salary and Wage Division, Office of Personnel, have expressed their
willingness to consider reorganization of a single component without
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waiting for a package plan for the entire Office of Logistics.
The slant grade applies only to Wage Board employees. To them i-,
has become a morale problem and demands early solution.
58. A related problem in the packing and crating section
was the grouping into one broad category of workers who previous-
ly had been on slightly different wage rates. Before reclassifi-
cation, for example, a special packer who custom-built the crating
for a heavy generator was acknowledged to be worth a few more
cents an hour than a box-assembler who nailed together pre-cut
pieces of wood. Although no one's hourly rate was cut, the re-
classification removed a small cash incentive for improvement
and eliminated craftsmen's status titles which were important to
the workers. Under present rules the same wage limits apply to
all packers, and the man who nails a box has the same ceiling as
the man who operates and maintains a complex machine.
It is recommended that: No. 50
25X1 A6A
a. The Chief, Supply Division, without delay submit for
approval proposed changes in the organization and grades of
the
b. This proposal include minor incentive variations in
the wage scales of hourly employees.
59. About 60 per cent of the depot's labor force is Negro.
Perhaps a dozen Negro workers charged or implied some degree of
racial discrimination. None could support this charge, and after
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a careful appraisal the inspecting team concluded that whites and
Negroes were both treated fairly. Generally speaking, the loudes-;
complaints were the most transparent. On the other hand, the more
thoughtful questions on this subject reflected genuine and legiti-
mate concern over whether this Agency affords equal opportunities
for employees of all rages. Several workers asked nothing for them-
selves but wanted to know if the Junior Officer Trainee program
was open to Negroes, if Agency recruiters visited Negro colleges,
or why nearly all the laborers hired at the depot in the past year
were white. With other supervisors of Negro employees, depot
officers share an important responsibility for internal relations.
It is recommended that: No. 51
The Director of Logistics assure that all supervisors at
the IDepot and similar installations are thoroughly
familiar with the substance and intent of Executive Order
10590 and other directives on U.S. Government employment
policies, and promptly call all known or suspected racial
problems to the attention of the Agency's Employment Policy
Officer.
60. A three-man section from the Cargo Branch, Transporta-
25X1 A6A
tion Division, is located at the to supervise truck
transportation of cargo there. This includes the assignment and
dispatch of 12 GS-8 truck and tractor-trailer operators in ac-
cordance with Interstate Commerce Commission regulations which
limit the number of hours of continuous driver operation, require
relief drivers and insist on annual physical examinations.
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61. The services performed by the Transportation Section at the
25X1A6A
mark the exact point of transfer of responsibility
for shipments from Supply Division to Transportation Division. I.
recommendation to help integrate transportation and supply functions
is made in paragraph E0-8, page 193, of this report.
62. The depot houses several smart repair shops. Largest is
the three-man typewriter shop, which overhauls and repaints standard
typewriters at a cost of $12.70 each as compared with a GSA charge
of $20 for overhaul only. Two men refinish and upholster furniture
and cut and lay carpets. One man repairs and if necessary opens
safes both at the depot and at covert installations where commercial
contractors cannot go. This man doubles as depot safety officer
and chief of the 16-man fire brigade. He holds a fire-fighting
instructorts certificate
has trained his brigade to contain a blaze until the
Fire Department can arrive.
63. Strictly speaking the stock control section is not a
25X1A6A
part of the
but since December 1960 its
25X1A6A
employees have worked there and their functions are closely re-
lated to storing and issuing goods. Under the supervision of a
GS-12 the stock editors maintain records of all Agency goods in
stock or in use in the continental United States and at installa-
tions under direct Headquarters control overseas. Finance Division
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maintains operational accounts
sions abroad.
64. As of April 1961 the Agency had about
on property under DD/P area divi-
of materiel on hand, principally in Office of Logistics
75XAA7
and nearly
'worth in use--the latter figure
ing materiel issued to special projects such as
125X9A2
categories in stock were
25X9A2
worth
depots,
not includ-
25X1A8A
The principal
cal equipment, including communications gear, valued at
techni-
Among items in use, the chief categories are furniture and office
75XAA7
equipment,
; technical equipment,
production equipment and precision tools,
records showed about
25X9A2
and re-
25X9A2
Agency
worth of goods and equipment on
loan to other agencies and companies but only about $50,000 of
this represented true loans, mostly communications equipment. The
test of the "on loan" total covered two aircraft temporarily used
by the Navy and Air Force, and since returned to Agency control.
Equipment on loan to this Agency from others totalled only $951.20
for two TSD items.
65. Every requisition goes first to the stock control section,
where an editor checks machine records and determines whether it
can be filled from the warehouse or requires purchase action. Al,
the same time, the editor adjusts his records and decides whether
goods must be reordered to maintain predetermined stock levels.
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The section has records of issue experience on more than 20,000
line items.
66. The stock control section should be the key unit in an
Agency stock-purifidation program; i.e., an attempt to standardize
materiel and purge the supply system of odds and ends which cost
too much to buy, store and issue through supply channels. For
example, stock control records show that the Agency owns 12
bottles of Scotch whisky originally bought at $2.50 a bottle, the
last issue having been in May 1960. The Agency's cost was $30
against a probable retail cost of $60, and the saving probably
does not justify the paper work involved in writing and processing
a requisition, handling a special purchase, making delivery, pre-
paring stock control and warehouse locator records, and maintain-
ing machine records. In this case the whisky is a medicinal item and
we do not question the propriety of its use, but it would be much
cheaper to buy whisky from a petty cash fund as needed than to
process it through a supply system.
67. The stock control section should turn its attention to
simplification, standardization and purification of stock as soor
as possible. Supply Division is aware of this need, but thus far
has been stymied by rush projects. The paper work involved in
stock controls should also be streamlined. As of April 1951 a
representative of the Management Staff had been working for almo;;t
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a year on this streamlining, with a desk in the middle of the
section. In view of Management Staff's involvement, this report
makes no specific recommendations.
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72. As of March 1961 the depot was working almost exclusive-4
on orders whose cost was increased by uncertainties, false starts,
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special instructions and short deadlines. Identifiable extra
costs, such as those for overtime and temporary laborers, were
charged to the DD/P project, but much of the normal operating
costs were also incurred for this project. Before the project
became active the depot was authorized to hire 25 temporary
workers from the Civil Service register until 30 June 1961 to
reorganize and rehabilitate stocks. These workers were thrown
into the special effort and early in 1961 the project agreed to
25X1 pay
temporary employees.
73. The Office of Logistics' reliance on what turned out to
be unrealistic DD/P estimates led to a vexing personnel problem.
Civil Service regulations limit temporary employees not hired
from the Civil Service Commission's register to 700 hours' work,
after which they may not work for the Government for a year. Thk!
DD/P division estimated it would need the temporary workers for
90 days, a period roughly equivalent to 700 working hours. Accept-
ing this estimate, the depot hired
extra workers on 25X1
the open labor mnrket, only to find later that they had reached
the 700-hour limit before the extra work was finished.
74. The depot chief estimates that it would take his normal
staff several years to rehabilitate stocks on hand. Whatever the
future of any project, it is evident that supply pipelines will
have to be emptied or reorganized and that there may be unusual
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logistical problems in UTE, FE or other areas.
temporary
workers originally hired to help rehabilitate depot stocks have
been diverted from this task. Authority for their employment ex-
pires at the end of Fiscal Year 1961, but the depot obviously will
need them longer.
It is recommended thatt
No. 52
The Deputy Director (Support) authorize continued employ-
ment in Fiscal Year 1962 of the 25 temporary employees orig:Lnally
hired by Midwest Depot to help rehabilitate stocks.
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60,000 square feet, of which 35,000 are usable for storage. Agency
personnel are a GS-13 chief, his GS-12 deputy and a GS-11 transporta-
25X1C4A tion officer. The Agency
for the salaries and related expenses of 31 local employees, includ-
ing three secretaries, two property and supply clerks, a maintenance
engineer, seven guards, and 18 laborers.
88. The warehouse was in good order and as of early 1961
25X1X4
appeared to have space to spare. The first floor,
power equipment and conveyor systems for
containing
, packing and
and out as fast as
crating, is used to move current shipments in
possible. The second floor contains large offices and storage
space for goods scheduled for shipment in two to six weeks.
89. The third floor contains lumber, packing materials, and
dead storage. Among the dead storage items are many crates of
left over from operations cancelled
years ago. The depot chief is not even curious about what to do
with this dead storage material, taking the position that he has
plenty of space to store it and will some time get instructions
from Headquarters on its disposition. It is suggested that Supply
Division find out whether DD/P officials have any plans for this
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material, which is deteriorating in crates never opened for inspec-
tion.
90. The depot operates two station wagons) four trucks and
two heavy tractor-trailers to haul assembled shipments to piers
and to pick up
area purchases. It seems unlikely that
eight vehicles are needed for normal transportation at so small a
depot. Transshipments through the
should decline
since the Agency has begun making sea shipments from the
25X9A2 Depot
25X1
Direct purchases for stations abroad,
described in paragraphs 148-9, pages 118-119 of this report,
scarcely warrant the depot's time and trouble. If the depot TVA
were cut it might still use comnercial haulers or U-Drive-It
trucks to meet peak loads; rental trucks already are being used
to move
25X1A6A
purchases.
It is recommended that:
The Director of Logistics review the TVA of the
No. 56
91. One secretary works primarily on routine warehouse
records, but the other two are assigned to the depot chief and
his deputy. The chief's secretary is a G6-7 who took a reductio/i
from GS-12 to live in the area. She is a superior employee and
has the chief's full trust. The deputy's GS-5 secretary, in
addition to handling his correspondence and files, has free access
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to a $500 petty cash fund for over-the-counter purchases. Both
92. At one time the Agency had six T/0 positions at the
depot, including two for secretaries. As pressure grew to reduce
Agency personnel, these slots were transferred and the present
25X1C4A secretaries were
25X1C4E
25X1C4E
25X1A6A
25X1
This transaction did
not reduce the number of secretaries eloployed. Their work is
AS it happens, both
secretaries have personal reasons for wanting to remain in
-- even as many married Headquarters secretaries want to
stay in Washington. This is no excuse for T/0 changes which mask
actual Agency functions and contribute to misleading employee totals.
It is recommended that: No. 57
25X1C4A
25X1C4A
a. The Director of Logistics return two secretarial
slots to the T/0 and offer career employ-
ment to thel now serving as secretaries to
the chief and his deputy, and
b. The Director of Logistics permit the incumbents to
retain if they wish, but assure that their
successors are charged against Agency positions.
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flammables, and 40,000 square feet of hard-stand area. It is
operated by a GS-14 chief, three other Logistics careerists, an
attached Office of Communications employee, and a of
including eight guards. Procurement activities of the Logistics
employees are described in the Procurement Division section of
this report, pages 113-8.
94. Except for combination safes, the depot carries nothing
for issue. As of March 1961 the main warehouse was 37 per cent
occupied, mostly by dead storage of
parts and communications gear. It is not suitable for storing or
handling
25X1C4A
industrial area.
that the Agency uses
being in the heart of a closely built
supplies the warehouse rent-free and is aware
less than half of it, but for two years has
been unable to find a suitable co-tenant. Only half of the office
space at the front of the building is occupied and there would
Office.
have been ample space to house the
however, this office was placed
free rent and provided greater security.
which also offered
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99. Normally we might question the maintenance of an isolated
and distant warehouse which is less than half full and contains
mostly dead-storage items.. However, the Agency's
and
depots are full and their work forces are
swamped with priority work. The
depot costs nothing
in rent, is efficiently run, and is useful not only for overflow
storage but also for procurement, packing, and forwarding. We
suggest only that the chief of our
the availability of storage space on the
depot bear in mind
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25X
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122. Representatives of the Inspector General are accustomed
to hearing descriptions of slow promotion, lack of headroom in
tables of organization, and the advancement problems of employee;;
stationed far from Headquarters. We are aware of the general slow-
down in Agency promotions and of the special problems in the Office
of Logistics. Nevertheless, we are convinced that some means malt
be found to promote a few of the dedicated, efficient and hard-
25X1A6A working Logistics employees in
This is especially true
when Logistics personnel do excellent work in a slot higher than
their grade and work long hours of uncompensated overtime, yet
stay in grade while employees of other components move ahead and
collect rich overtime payments. For example:
a. The Chief of Logistics Branch is a as-13 completing
25X1A6A a second tour
25X1A2G
He has performed outstandingly in
prospect of promotion.
has 19 years of
a GS-14 slot but has no immediate
b. The Chief of
service in the Agency and its predecessors. He has been in
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grade as a GS-11 for nine years, the past three in a GS-12
slot. During this period he has been recommended for promo-
tion formally or informally five times.
c. The post engineer, a G6-11, must supervise four
25X1A6A American and
employees and act as city manager
for the community. He must know something about construction,
landscape gardening, painting, plumbing, metal work, pest
control, trash collection, masonry work, electrical wiring
and appliance repairs, and operating a telephone exchange,
water supply system, and electric generators. He must also
be enough of a diplomat to keep all wives happy with their
quarters. His last promotion recommendation was rejected.
123. We are not specifically recommending any of the above
for promotion. Yet we are concerned by the apparent impossibility
of promoting any Logistics employee at
records of the personnel officer at
. As of March 1961
showed that not a
single Logistics careerist on the regular station complement had
25X1A6A been promoted in in the 22 months this officer had served
there.
124. Meanwhile, employees with other career designations who
25X9A2
live and work beside the Logistics people at
have
managed to improve their lot. An extreme example is in the DPD
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where three of the four Americans are contract employees. One or
these is a former Office of Security staff employee who resigned
his GS-9 staff job and was immediately picked up by DPD as a GS-L1
contract employee. Although some question about his overtime
scale developed later, during the survey this employee said that
his contract authorized overtime at the GS-9 rate of $4.65 an
hour, which is higher than the GS-11 overtime rate. The
Section is not under Logistics Branch nor even under the larger
25X9A2 DPD
unit, and the
25X9A2
authorize and 25X9A2
report their own overtime totals. In the eight weeks from 22
January through 18 March 1961 this contract employee claimed 183
hours of paid overtime which at $4.65 an hour would total $850.95.
If maintained for a year, this overtime rate would give the
employee $5,500 above his base pay, which itself was raised from
GS-9 to GS-11 when he abandoned a DD/S staff position for a DD/P
contract.
125. Such success stories are circulated in the camp and do
little to improve the morale of Logistics careerists who work as
long and as hard for less pay. The effect on morale is especiaL.y
25X9A2 bad since the
occupies part of a Logistics ware-
house and only recently was transferred from Logistics to DPD
control. It is debatable whether this transfer was necessary, s:lace
the work is substantially the same as that done under Logistics
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attached personnel to make the move fast. As of the inspectorst
visit there were obvious and even heated differences of opinion,
with some support personnel arguing for "a smooth and orderly
transfer" and some operations personnel interpreting this as plain
foot-dragging.
127. According to the acting chief of station there was an
urgent need for roof repairs at an administrative and TSD building
ml even though it had been decided that the building
would be vacated in 1961. When he visited
to discuss
these repairs he was amazed to learn that, without authority from
the station, Agency employees there had been getting bids on air-
conditioning the building at an estimated $36,000.
128. The
supply base was officially closed 31 January
1961; some employees transferred to
and others returned
to the United States. Security of the transfer was questionable;
129. As of March 1961 logistics personnel in
25X1A6A
25X1A6A
25X1A6A
Jere 25X1A6A
apparently taking a business-as-usual approach to storing and
supplying furniture. Meanwhile, in Enclosure 4 to
dated 17 February 1961, the acting chief of Station
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the following to Headquarters:
"Vie have about an eight-year tradition of handholding
and provision for almost cradle-to-grave treatment of our
personnel. In the field of supplying furniture we have
created a Frankenstein monster by way of the mass of furni-
ture we have accumulated, the warehousing we must maintain
to keep the not-in-use items, the trucking arrangements we
have to make to have furniture delivered and picked up, the
cut-out arrangements that frequently have to be made in many
instances of delivery and pickup, the constant maintenance
and repair work, and the terrible load of bookkeeping that
must be conducted to keep an accurate count of what we have
by way of furniture, who has it and all the repetitiousness
of inventories. The mere fact that we have always supplied
people with furniture, the mere fact that most of our people
25X1A6A
cannot ship their own furniture the mere fact
that we have such a regulation as are no longer 25X1
legitimate reasons or justifications for continuing this
function, especially in a period of reduction of station
personnel."
130. The support activities are an hour by train
25X1A6A
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on a
installation that furnishes ample office
space, work areas, and warehouse facilities. Offices are on the
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second floor of a large administration building. The lower flooc
Is occupied by work areas for TSD. Security guards control
entrance to the building. The Tb O includes 12 staff and four
contract employees.
131. Directly behind the administration building is a ware-
house area consisting of approximately 35,000 square feet of
storage space, a third of which is currently in use by TSD in-
digenous personnel who MAke and check special equipment. The re-
mainder of the warehouse is filled with household items, club
furnishings, office equipment and sufficient new and used rattan
furniture to equip 10 family units. In a temperature-controlled
and partly dehumidified area on the laver floor of the administra-
tion building TSD maintains its supplies and equipment. This area
consists of six adjoining rooms with open shelving on which are
stored unassembled items of photographic and audio equipment and
large stocks of photographic paper.
132. Most
maintained at
property accounts and records are
Supply functions are chiefly storage
and issue of housekeeping supplies and mnintenance of locator
cards describing the item and indicating its location in the
warehouse. Other functions include procurement, housing, finance
and transportation.
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137. We believe it is feasible and advisable to close the
125X1A9 support base by 30 September 1961. Major steps in this
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direction already have been taken, but as of March 1961 the fieli
still needed (a) clear and definitive orders from Headquarters,
and (b) a field coordinator authorized to work out details of thc
25X1A6A move to
or other stations without constant reference to
Headquarters. In the absence of firm orders and local coordina-
tion, the move may be delayed by honest misunderstandings or pro.
crastination.
It is recommended that: No. 64
a. The Deputy Director (Support) and Deputy Director
(Plans) issue firm orders for the immediate termination of
all Agency support activities at and the orderly 25X1A6A
phasing out of activities September 1961, in-
cluding instructions for the disposition of personnel and
supplies or equipment of their components, and
b. The Deputy Director (Support)and Deputy Director
(Plans) jointly appoint one senior officer in the Far East
area to coordinate transfers of personnel and materiel. It
is suggested that the Chief of Station, be given this 25X1A6A
responsibility together with appropriate authority.
25X1A6A
25X1A6A
25X1A6A
De ot
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25X1C4A 139. The chief, his administrative officer, and the secre-
tary have office space at I I headquarters. The remaining
personnel, plus three base-provided guards, are at the
storage and warehouse area, a security compound bordering the
25X1A6A
25X1X4
1 lin the most remote area of
regulations are adequate and rigidly observed.
Security
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is able and meticulous. As a result
the activity now has up-to-date and accurate records, orderly ware-
housing, and improving morale. Subordinate personnel are mostly
old-timers in logistics and know their jobs.
25X1 A6A 144.
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personnel, with the exception of the chief, did
not take privately owned vehicles with them on this assignment,
presumably upon Headquarters' advice.
is a metropolitan
area with few telephones and no reliable public transportation.
Widely separated housing makes car pools impractical and individual
employees drive to work leaving their wives and families with no
means of communicating with other U.S. personnel or obtaining
medical assistance in emergencies. We consider this a definite
morale factor and suggest that replacements in the future be advised
to take personal automobiles. After arrival in
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146. Buildings include an office, MESS facilities, barrack,
25X1A6A shops and warehouses. The facilities are located at one end of a
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has a similar depot.
The
buildings were shipshape and safety precautions appeared adequate
Facilities for personnel and storage would permit considerable
emergency expansion. Most recent outgoing shipments of stock at
the time of the inspection had been back to the United States.
147. The base supervisor outlined plans for converting an
unused small barracks into two apartments for staff employees,
which would make Agency personnel more readily available. Assumt-
ing long-range plans to maintain
on a contingency basis,
the inspection team would support this proposal with the warning
that care should be shown in selecting compatible families.
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E. TRANSPORTATION DIVISION
1. The organization and functions of the Transportation
Division are set forth in Instruction No.
dated 3 May 25X1
1957, but the division is actually operating under a revised in-
struction which has been adopted for general use but has never
been formally approved. While the draft instruction is generally
applied, the chiefs of the subordinate components know that the
draft instructions have not been formally approved and have some
doubts as to its validity. We believe the draft should be re-
vised again in accordance with the findings of this survey and
formally approved as soon as possible thereafter.
It is. recommended that:
Year
tion the Division budgeted about
sion
No. 65
The Chief of Logistics distribute a revised and approved
version of Instruction No.
2. The Division operating cost was about
for Fiscal
1960, including vehicles for the Highway Branch. In addi-
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to cover redistribution of stocks. The operating cost for
the Transportation Division increased over Fiscal Year 1958 and
1959 but only by amounts approximately equivalent to the increased
personnel costs. At the present time, no data are available on
the total transportation costs of the Agency. The Transportation
Division is exploring with the Office of the Comptroller the
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practicability of inserting transportation cost data in the IBM
system so that total transportation costs of the Agency could be
determined from time to time. We suggest that the results of the
exploratory talks with the Office of the Comptroller be made
known to the Deputy Director (Support) so that he can decide
whether to consider the question further.
3. During Fiscal Year 1960, the Transportation Division
completed action on over 78,000 requests for transportation which
Since 1958, these statistics have remained about the same, except
that the number of shipments processed and the number of tons
shipped have increased
per cent. During January 1961
there was a sharp increase in tonnage shipped due to the
program. Tonnage during March 1961 was about
December 1960.
4. The Division is
that of
under a senior GS-15 who has had exten-
sive experience in the field of transportation. The deputy chief
is an Army major who will finish over five years with the Agency
and retire during the summer of 1961 after 20 years 1 military
service. He expressed no desire to continue with the Agency. Bis
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initial tour of three years was extended and then due to approach.-
ing retirement, it was decided that it would be extended again
until he reached his Army retirement date. We do not question the
initial assignment nor his performance in his job; likewise, we
do not question the reasonableness and propriety of the additional
extension to allow him to complete his 20 years of service on duty
with the Agency.
5. We do question the advisability of allowing an Army major
to finish his tour in the key position of deputy chief of the
Transportation Division when his services could have been useful
elsewhere and a career employee placed in a position of responsi-
bility where he could gain valuable management experience. It
would have added strength in the management structure between the
Director of Logistics and the branch and section level to have
placed a promising logistics careerist in the position of deputy
chief of the Transportation Division. This division, like other
divisions and staffs in the Office of Logistics, has a need for
services of career military officers for such work as planning,
advice on latest military thinking and liaison. Unless it is
planned that an officer will become an Agency careerist, the
Director of Logistics should avoid assignment of military officees
to such positions as deputy chief of the Transportation Division
except on a temporary basis.
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It is recommended that: No. 66
The Director of Logistics and the Chief, Transportation
Division, select a career Agency employee as replacement fcr-
the incumbent deputy chief of the Transportation Division
when a vacancy occurs.
6. The division is organized with six positions in the office
of the chief, a Planning and Control Staff, a Highway Branch, a
Cargo Branch, and a Passenger Movement Branch. Currently there are
positions which represent a gradual reduction from in
Fiscal Year 1955. Five persons were shown as detailed to
but this number did not reflect the personnel demands on the Trals-
portation Division by this project. Others were tied up with this
project although not detailed, and at the time of the survey there
was considerable shifting of personnel within and between branches
to meet the workload.
7. Comments and recommendations on the collaponents of the
Transportation Division will be made in subsequent sections, but
one is of special importance to two branches and will be discussed
as part of the over-all discussion. The Highway Branch is concerned
primarily with the Headquarters' passenger vehicle pool, the Head-
quarters' bus pool and the maintenance of the vehicles. However,
it is also assigned the truck pool which is used for cargo both
at and away from Headquarters. This arrangement was set up
originally in order to have drivers and vehicles under the same
branch chief as vehicle maintenance facilities. At that time the
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near the garage. Transportation experience
indicated an advantage in having the responsibility for drivers,
vehicles and maintenance placed at the lowest possible level.
8. In the case of the Agency's trucks and trailers, some of
the service is performed by the Maintenance Section of the Highway
Branch, but major service is performed by commercial maintenance
concerns. The Cargo Branch is responsible for the movement of
freight and has operational control over the truck pool, while
the Highway Branch has personnel administrative jurisdiction over
the drivers. The drivers report to the
warehouse, where
they receive their work assignments from Cargo Branch personnel.
The fitness reports of the drivers are prepared by Cargo Branch
personnel and reviewed by the Highway Branch. In the Inspector
General's survey dated January 1955, it was recommended that re-
sponsibility for the trucks and drivers be transferred from the
Highway Branch. We believe that the net advantage to the Agency
is heavily on the side of the transfer of the truck pool to the
Cargo Branch.
It is recommended that: No.67
The Director of Logistics transfer the truck pool of
the Highway Branch to the Cargo Branch.
Planning and Control Staff
9. In the fast-moving business of transportation of Agency
cargo and personal goods with a large number of individual trans-Actions.
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it is essential for the chief of the Transportation Division to
have an integrated unit such as the Planning and Control Staff
under his direct supervision. The staff consists of a GS-13
chief; two military officers, one from the Army and one from the
Air Force; an Agency career employee as a transportation officer;
and a clerk-stenographer. The staff was short-handed at the time
of this survey, and was struggling to keep up with its essential
work.
10. It is advantageous to the Agency for the Transportation
Division to have at least one Army officer and one Air Force
officer, each with experience in military transportation. We be-
lieve that the Planning and Control Staff is the proper place for
these officers and that priority should be given to that staff in
such assignments. However, the chief of the Transportation Divi-
sion should have freedom to exercise judgment on the particular
experience and personalities of the officers. One officer who was
absent on sick leave has been promoted from major to lieutenant
colonel, but remained subordinate to a major who was deputy chief
of the division. In this case, no serious difficulty was antici-
pated, for there may be only a short interval between the lieutenant
colonel's return and the major's retirement.
11. Analysis of the Planning and Control Staff in relation
to the office of the division Chief indicates that the chief would
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do well to consider reducing the number in his immediate staff
from six to four or five and placing the others in the Planning
and Control Staff. He could transfer the administrative
assistant and a clerk-stenographer, reducing thereby the number
of employees he and his deputy-mist personally supervise and, at
the same time, increasing the flexibility of the Planning and
Control Staff. We raise this point as a suggestion and not as a
specific recommendation.
12. The staff maintains control records, handles the Tablef,
of Vehicular Allowances program, provides guidance on all phases
of motor vehicle management, handles the division budget work,
and prepares and coordinates regulatory material pertaining to
vehicles and the travel series. The law governing travel is
complex and the Planning and Control Staff must maintain a work-
ing knowledge of all factors involved. The staff has a number of
planning projects and, from time to time, mnkes special staff
studies. Some of this work has been curtailed due to the shortage
of personnel.
13. The nature of the work of the Transportation Division
requires a large number of reports from the branches and from
the Planning and Control Staff. Personnel of the staff have
simplified procedures for preparing certain of the reports and
are reviewing all others. In the field of planning, there is some
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reason to question whether the Planning Staff of the Office of
Logistics has had a sufficiently close working relationship with
the Planning and Control Staff of the Transportation Division.
We believe that the initiative for this rests primarily with the
Planning Staff of the Office of Logistics and have commented on
the matter in the section dealing with that component.
14. The Transportation Division has two GS-14 positions,
one for the deputy chief and one for the chief of the Cargo Branch.
In view of the importance of the Planning and Control Staff in the
division's operations and the potential benefit to the division
from initiative and experience on the part of its chief, we be-
lieve that the position should be raised from GS-13 to GS-14.
It is recommended that:
No. 68
The Director of Logistics consider raising the position
of Chief, Planning and Control Staff, Transportation Divi-
sion, to GS-14.
Cargo Branch
15. The Cargo Branch is responsible for surface transporta-
tion of Agency cargo and commercial and normal military air lift
including mail and government pouches. DPD controls the use of
Agency aircraft and arrangements for special military air lift.
In the case of cargos moved by Agency trucks under the jurisdiction
of the Highway Branch, the Cargo Branch schedules the use of the
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trucks and dispatches the drivers. The management organization
of the Cargo Branch seems entirely adequate to assume all the
responsibilities for the truck pool, and a recommendation that
the transfer be made has previously been presented on page 193
of this report.
16. During Fiscal Year 1960, the Cargo Branch handled a
cargos handled by the Agency truck pool, which were included as
a matter of statistical convenience. Eliminating that figure,
the air and surface movement by the Cargo Branch totalled about
or approximately 7 per cent
was moved by air. During the past three years, the tonnage shipped
by air has remained at a fairly constant level, while the tonnage
by surface transportation has increased sharply. This would indi-
cate that the Office of Logistics and other responsible components
have done a reasonable job in holding down the level of costly
air cargo in the face of a rising demand for total cargo movement.
Since the first of 1961, the total tonnage has increased sharp13,
for both air and surface transportation with the ratio of air to
total remaining about the same as for Fiscal Year 1960.
17. Truck deliveries have been made to points as distant av
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cargo, or a
without any known compromise to
single security violation. Up until 15 April of thin
fiscal year, drivers have travelled a total of
transporting
miles in 25X1
tons of cargo. Within the past six
months drivers have averaged a total of 30 to 4o hours overtime
per pay period.
18. At the time of the survey, the Cargo Branch was under
GS-13 serving as acting chief during the absence of the chief,
who was on temporary duty. The personnel allotment of the branch
has remained nearly constant over the past five
years and is now 25X1A8A
25X1
listed at n Two of the staff were detailed
to and others
devoted a high percentage of their time to the
project al-25X1
-Nov
though they remained technically in the branch.
The
organiza-
25X1A6A
25X1
tional arrangement in effect at the time of the survey was not in
conformance with either the approved or new draft instruction
covering the organization and functions of the Transportation
Division.
19. As it exists, there are four basic area sections: one
generally covering the Far East and the Western Hemisphere; one
covering the Near East and Eastern Irope; one covering
and one covering the United States. One
transportation unit with
is located at the
directly under the jurisdiction of the Cargo Branch.
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Another sub-component under the branch chief entitled Movement
Control has been added to the organization. While it is not
designated as a section or unit, it nevertheless operates as a
separate component with a chief and a total of six positions.
The component was created originally to relieve the branch chief
and his deputy of paperwork from the area sections. It is an
academic question whether the group working under the title of
Movement Control is classed as a part of the office of the chief
or as a separate unit or section. The fact is that it does
operate as an integrated unit and has more positions than any
other component of the Cargo Branch. At the time of the survey,
only three of the six members of the group were on duty in the
office as the others were on loan to branch activities.
20. We do not question that the branch chief needs as-
sistance beyond that which the deputy is able to provide in handL-
ing a heavy load of paperwork and in avoiding delays in reviews
and approvals. However, we do believe that the Movement Control
group has grown out of proportion, and while it may have aided
in solving some problems it is not sound in concept.
21. The Planning and Control Staff at the division level Ills
an important role on behalf of all the branches. There is no
reasonable justification for carrying the control staff concept
further by having a control unit in the Cargo Branch.
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It is recommended that: No. 69
a. The Director of Logistics instruct the Chief, Trans-
portation Division, to abolish the component of Cargo Branch
now operating under the name of "Movement Control," and
b. The Director of Logistics instruct the Chief, Trans-
portation Division, that from personnel thus freed a minimum
nuMber will be added to the office of the Chief, Cargo
Branch, to help handle paperwork and the rest will be placed
in area sections as needed.
22. The Cargo Branch had a problem in handling the working
records needed by the traffic assistants in the area sections.
It had been the practice for the individual traffic assistants tc)
make up their own card indices as the transportation requests
arrived and for the branch to maintain the active file folders at
a central point. The Movement Control group made a definite im-
-Amor
proVement in the situation when it arranged for the active file
folders to be maintained and retained by the individual traffic
analysts, relieved them of the index cards, and transferred the
work of preparing and maintaining the cards to the office of the
Movement Control group.
23. The area sections remove the folders from their working
files as soon as action is completed, and hold down the need fox.
file cabinets in the crowded offices. The folders are consoli-
dated at a central point in the branch. After about three months,
the folders are transferred to other file storage space from which
they can be retrieved when a completed transportation action must
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be reviewed for some reason. In actual practice, when the traffic
assistants need a file which is not in their own office, they go
to the central files in the branch rather than to the central
index cards in the Movement Control offices. The net result is
that the card indices in the offices of the Movement Control are
unnecessary. The Movement Control group made a constructive step
when it eliminated the index cards maintained by each traffic
assistant and replaced them with the working folders, but it did
not take the next step and eliminate the central index cards
entirely.
It is recommended that: No. 70
The Director of Logistics instruct the Chief of the Cargo
Branch, Transportation Division, to eliminate the central
index cards maintained in the offices of Movement Control
and assign the personnel responsible for that work to other
duties.
24. The branch has done some thoughtful work in attempting
to improve the planning and scheduling of cargo from the time the
request is initiated to delivery to the forwarding point. It
should continue this effort and call on the Planning and Control
Staff of the Transportation Division when assistance is needed.
25. The four area sections of the Cargo Branch are consistent
in their general methods of operation and cooperate on mutual
problems. By handling cargos to specific areas, they gain an
understanding of the special problems and peculiarities of cargo
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movement in and to those areas and are able to handle routine
transportation actions rapidly. The breakdown of the workload
among regions is a sensible arrangement and is based on working
experience.
26. Traffic officers and assistants have direct contact wich
commercial air lines but not with the agents of steamship lines.
When direct contact with steamship lines is necessary, the prob-
lem is handled by the office of the branch chief or persons in
the Movement Control unit. Liaison with the military services 13
assigned to specific individuals to reduce the chance of confusion
in agency-to-agency relationships. Most military contacts are
with the Air Force and the Army. The amount of cargo moved by the
Navy is negligible.
27. In the normal course of activities the area sections
face such problems as customs regulations and delays. For example,
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28. The chiefs of the area sections occupy GS-ll positions
with the next senior traffic officer or traffic assistant occupy-
ing a GS-9 position. While the grade attached to the position of
chief would appear adequate for the responsibilities involved,
the grade of the people doing the work in some of the area sections
is another matter. The drafting of experienced people for speciel
projects and other demands had caused the game of musical chairs
to reach serious proportions in the area sections. One young
lady who had entered the Agency in 1955 as a GS-4 and who advanced
to a GS-7 had been acting chief of one area section for three
months. She gave the appearance of being competent and unusuall4
confident. In another section, a GS-4 clerk-typist worked part
of the time as a traffic assistant and, upon occasion, when the
chief of the section and one other employee were absent, she had
taken charge.
29. While we are inclined to credit these junior employees
with ability and grant the possibility of unusual ability, we
question the judgments of the division chief and the branch chief
in assignment of responsibility. The reason for originally estab-
lishing the Movement Control group was to relieve the branch chief
of a flaw of work. We believe that if he gave more attention to
experience in the assignment of section chiefs he might be able to
transfer more of his own workload to the sections. This would be
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better than superimposing more people in a staff capacity, such
as the Movement Control group, over the area sections.
30. The shortage of personnel and the demand for experienced
transportation and cargo people for a special project placed the
branch chief in a difficult position, and he had few alternatives
in his effort to keep the sections manned and get the job done.
Nevertheless, we believe that the Chief, Transportation Division,
and the Chief, Cargo Branch, are risking trouble by placing
responsibility for running the area sections in the hands of
very junior personnel.
It is recommended that: No.71
a. The Director of Logistics instruct the Chief, TranE?
portation Division, and the Chief, Cargo Branch, to keep the
area sections covered by personnel of unquestioned experierce
and maturity, and
b. The Chief, Cargo Branch, strengthen the area sections
and thereafter transfer some of his lesser duties to them.
31. The handling of parcel post shipments from the
Depot raises certain logical questions. On the surface it appecrs
that after Supply Division personnel package materiel for parcel
post shipment it should be shipped immediately rather than put on
the shelf while documents move to the Cargo Branch in
25X1 and back to
frith approval for release. A change in this
procedure might set off a chain reaction. It would be necessary to
25X1A6A
Th.f_s
transfer Cargo Branch personnel and functions to
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raises the question of the desirability of moving the entire Ca:To
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32. The move to the new building will affect the workload
of the Cargo Branch. The impact cannot be foretold within the
narrow limits, and therefore we believe that the present pro-
cedures for handling parcel post shipments should be continued
until plans for location of the Logistics components are further
advanced. The handling of parcel post shipments is minor and
subordinate to other questions in connection with the move to the
new building. It should be reviewed at a later time.
It is recommended that: No. 72
The Director of Logistics instruct the Chief, Transporta-
tion Division, to review the question of parcel post ship-
ments when final plans are being made on the location of
Transportation Division personnel in relation to the new
building.
Passenger Movement Branch
33. The Passenger Movement Branch handles the movement of
personal property in the United States and overseas. The branch
provides guidance to Central Processing Branch on the movement of
individuals but does not have direct responsibility for that
activity. For Fiscal Year 1960 there were
requests corn- 25X1
pleted for movement of household goods, and the level of activity
has remained about the same for the last three full years. Duriag
the first nine months of Fiscal Year 1961, there was a reduction
of about 10 per cent in requests from the same period Fiscal Year
1960.
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personal vehicles shipped during Fiscal
Year 1960, which was about 25 per cent less than the level of
Fiscal Year 1958 and 1959. For the first nine months. of Fiscal
Year 1961 there was a further reduction of about 17 per cent com-
pared to the same period in Fiscal Year 1960. For the last three
full fiscal years the outgoing vehicles ranged between 70 and 80
per cent of total and the incoming vehicles ranged between 20 and
30 per cent. For the first nine months of Fiscal Year 1961 the
ratio had changed to 60 per cent outgoing and 40 per cent incoming
compared to about 75 per cent outgoing and 25 per cent incoming
for the identical period in Fiscal Year 1960. Possibly this
change reflected shipments made while the Government still paid
transportation for foreign cars bought abroad.
35. The chief of the branch is a mature GS,-13 who had trans-
portation experience with a railroad and with the Marine Corps
prior to coming to the Agency. The branch is unusual in that
there is only one section., a personal property section. There
are four people in the office of the chief and six people in the
single section under a section chief. In practice the organiza-
tional arrangement is reasonable and effective. The single
section deals with normal movenent of personal property where no
unusual problems are involved. The chief of the branch, his
deputy, and a transportation officer handle property movement caoes
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requiring special considerations, such as sensitivity of movement
and materials.
36. The chief and deputy chief keep in close touch with pro-
25X1C4A cedures of the I and advise the Central Processing
Branch as well as the personal property section on policies and
procedures. The single section was formerly divided into two
units, one handling incoming property, and the other outgoing
property. However it has been found that the present arrange-
ment, whereby work is divided primarily by
, allows
the branch chief more flexibility in adjusting the workload among
traffic assistants.
37. The deputy chief of the branch is an Air Force major
who will soon finish his tour and return to his military service.
Be will be replaced by a civilian career employee. At one time
it may have been advantageous to have a military officer as deputy
chief of the Passenger Mcvement Branch, but we do not believe
that adequate reason now exists. We find ourselves in complete
agreement with plans to fill the deputy branch chief's position
with an Agency career empLoyee.
38. The chief of the personal property section is a GS-6 in
a G3-8 position and the other slots for the traffic assistants
range from GS-5 through -7. There is a question whether or not
the grades match the responsibilities carried by the individuals
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in the property section, and the chief of the branch has raised
this subject. However, he felt some deterrence in pressing the
matter as draft instructions for the organization and functions
of the Transportation Division had not been formally approved,
and as the Management Staff has been giving attention to the Office
of Logistics. We believe there is sufficient basis to question
the adequacy of the grades, and that this warrants prompt atten-
tion.
It is recommended that: No. 73
The Director of Logistics arrange for a classification
analysis of the positions in the Passenger Movement Branch.
39. The branch maintains an imprest fund of about $25 to
handle small transportation expenditures such as taxicab fares.
These disbursements are handled in such a manner as to permit
access to the cash box by only one individual unless absence
necessitates the transfer of the responsibility to the alternate
custodian. The funds are checked periodically by the Planning
and Control Staff of the Transportation Division.
Highway Branch
40. The Highway Branch is charged with providing motor
vehicle support to the Agency in the Headquarters area and with
the administration and maintenance of the drivers and vehicles
required. The branch is organized into three sections: the
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office of the chief, the Maintenance Section, and the Operations
Section. In total the branch has a T/0 of positions, all but
25X1A1A
19 for drivers. The budget approaches per year.
25X1A6A 41. The Highway Branch is headquartered in a leased two-levl
25X1A6A
garage
in
Virginia. Both levels
total 19,500 square feet, all used for vehicle maintenance or
storage. The garage has been occupied by the Agency since before
1950 and the Agency has recently signed a
per year. The current lease may be terminated on 30 days' notice
but long-term retention is planned and the garage will be used
after the Agency moves to the new building. Facilities at the
garage are rather stark but the basic purpose is served.
42. The office of the branch chief is authorized six posi-
tions: chief, GS-12; deputy chief, GS-11; property and supply
assistant, GS-7; clerk-stenographer, GS-5; and two property and
supply clerks, GS-5. All hold the grade of their positions and
have been in grade for years. The branch chief has been authorized
to advance funds and approve and pay travel vouchers of motor trans-
port drivers dispatched out of the Headquarters area. Payment is
made from a $2,000 tmprest fund. This fund was audited and cash
counted during the survey. No discrepancies were found. Several
persons on the staff are qualified Civil Service Commission driver-
license examiners and they give tests and issue Agency drivers'
licenses.
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43. The Maintenance Section is on the lower level of the
garage and is composed of nine persons: a shop foreman, four
automotive mechanics and four mechanic's helpers. The section
25X1 is charged with maintaining
I
ehicles
in
the Headquarters
area.,
25X1
25X1 including npassenger vehicles,
trucks,
buses, and
25X1
tractor semitrailer units.
The
is
with
25X1
section
also charged
servicing and frequently modifying official vehicles prior to
shipment overseas. The Maintenance Section limits its activitieE
to first- and second-echelon work such as brake repairs and ad-
justment, ignition and carburetor repairs, and similar simple efforts.
More complex repair work is performed on a contract basis by
commercial repair shops. The basic shop problem, however, is
that of having too much work for the staff. Motor Pool drivers
say they have been instructed to report all mechanical deficiencies
in their vehicles to the garage. The drivers complain that this
does not always mean repairs will be made.
It is recommended that: No. 74
The Director of Logistics supplement the Tb O of the
Maintenance Section so as to provide more automotive mechanics
to properly meet the workload being encountered at the garage.
44, The Operations Section is where all the efforts of the
branch come into play to provide the basic service of transportation.
The section is divided into smaller units whose names are self-
explanatory. Three dispatchers control and direct the daily operation,
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the passenger vehicle pool provides sedan passenger service, the
bus pool operates the Agency's shuttle bus system, and the truck
pool provides
a T/0 of
45. The passenger motor pool employs
whom are
cargo-handling service. The Operations Section ha;.;
f these positions are for drivers.
drivers, seven of
assigned to specific services: two drivers to the Dire-
tor's vehicle (for coverage purposes), one driver to the DDCI's
vehicle, three assigned to vehicles designated for use by the
offices of the DD/S, DD/I, and DD/P, and one assigned to a
vehicle belonging to the National Security Council. Four more
25X1A6A
drivers are used daily to provide shuttle service tol
the Stewart Building, the late evening shuttle service to the
temporary buildings, and
46. These "must" services reduce the pool strength to
drivers and if illness or leave causes the assigned shuttle or
bus drivers to miss work then the pool must provide a replacemen,.
It is therefore quite common for the motor pool to conduct its
daily operation with an available driver pool ranging from six to
12. The passenger motor pool is required to provide service 24
hours a day, seven days a week, and is consistently required to resort
to overtime. Approximately 50 per cent of the drivers in the po-)1
were interviewed in the course of this survey and most reported they
receive overtime pay every pay period.
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47. Motor pool drivers voiced a series of complaints. Mos,
consistent was a desire to have a monthly driver-supervisor meet-
ing where ideas could be exchanged, where the drivers could be
told of developments of concern to them, and where the drivers
could communicate to a supervisor above the section level. Also
consistent was the desire for recognition of individual safe-
driving records. Other government agencies have a safe driver's
award of lapel pins and certificates and some agencies give small_
cash awards in addition to the pins and certificates. We under-
stand that such suggestions have been turned down in the past fo:-
security reasons but we believe security difficulties can be
overcome.
It is recommended that: No. 75
a. The Director of Logistics, in conjunction with the
Office of Security, establish an Agency Safe Driver Award
Program consistent with similar programs of other Federal
agencies.
b. The Director of Logistics establish a program of
scheduled meetings between motor pool drivers and their
branch chief.
48. Many drivers expressed dissatisfaction with the vehicle-
washing service provided by the garage. Drivers, by office
pressure or pride, are washing their awn vehicles. The garage
closes shortly after they return the cars in the evening and opens
shortly before they pick up the cars in the morning. Under these
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circumstances there is little time for the cars to be washed.
Washing a car in the morning gets drivers' uniforms dirty and
rumpled and they then may be criticized either for driving a dirty
car or not appearing personally neat.
It is recommended that: No. 76
The Director of logistics provide for a more adequate
motor vehicle washing service, possibly by establishing a
late shift at the garage.
49. The bus pool is composed of
operate the
chauffeurs W-61 who
shuttle buses. These drivers all work a 10-hour
day to provide service from 8 a.m. to 6 p.m., with all drivers
on duty during the morning and evening rush hour. This extra
service uses two spare buses. The service transports approxi-
mately
mployees per month with little variation between
winter and summer months. Preliminary plans for service to the
new building indicate that the present 15-minute service will
probably be changed to service every 25 minutes.
50. All bus drivers are provided with watches and have
been instructed to run their schedule late rather than on time.
In spite of these precautions, the most consistent complaint
received is that the bus has left a stop ahead of schedule. ThiE
complaint is not valid. The drivers note that they receive
frequent complaints from passengers who wish to be let off the
bus at unauthorized stops. The drivers handle this complaint as
best they can but they are not equipped with a listing of author:. zed.
stops.
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It is recommended that:
each
No.77
shuttle bus with
or showing to
The Director of Logistics provide
a list of instructions suitable for posting
passengers who demand special service.
51. The truck pool has positions for
tractor-trailer
25X1
drivers, grade W-8, and all but one position
is
filled. This pocl
moves heavy cargo between Agency warehouses. Although
the
truck
pool is considered part of the Highway Branch,
trailers used by the pool are garaged at the
the drivers report for and depart from duty
the
tractor-
25X1
25X1 A6A
25X1 A6A
an&
at
Opera-
tional control of the vehicles and the drivers is vested in the
Transportation Section, Cargo Branch, which is located at
The Highway Branch is thus compelled to administer these men in
every respect, but has no control over their use.
52. The truck pool association with the Highway Branch dates
back to the time when the depot was located in
. The
physical proximity of the garage and the depot at that time made
the association logical. With the move of the depot to
the basis for the association changed but the association did no.
It would now seem sensible to have the using component wholly
responsible for the unit. This would involve transfer of the
imprest fund which was established expressly for the truck pool,
but no transfer of administrative personnel is considered neces-
sary. It has been recommended earlier in this report that the -L ck
pool be transferred from the Highway Branch to the Cargo Branch.
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F. REAL ESTATE AND CONSTRUCTION DIVISION
1. There was no record in the Office of Logistics of an
approved version of the organization and functions of the Real
Estate and Construction Division. It is shown in a chart and in
Instruction No.
dated 23 May 1957, covering the organi-
zation and functions of the Office of Logistics. The division has
operated under various proposed statements and after the Inspector
General's survey began, a new proposed table of organization was
approved by the Director of Logistics on 22 March 1961, This T/O
does not include a formal statement of functions. With the exception
of the telephone section, the lack of an approved instruction appears
to be reflected throughout the division in doubts about the future
of the organization. We believe that this has tended to create 6.n
atmosphere of instability and lack of confidence. A formal instruc-
tion on organization and functions for the Real Estate and Construc-
tion Division is long overdue.
It is recomaended that: No. 78
The Director of Logistics issue a formal statement of
organization and functions of the Real Estate and Construe-
tion Division at the earliest practical date.
2. The operating cost for the division for Fiscal Year 1960
25X1A1A was about
, which does not include funds expended on
behalf of other components of the Agency. The division operating
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cost will be appreciably less in 1961 due primarily to adjustmentl
in the arrangements with General Services Administration (GSA)
regarding certain leasing costs. The division does not have
records on the cost to the Agency of real estate and construction
expenditures by proprietary concerns and has not maintained com-
parative records of the annual cost to the Agency of rentals,
properties purchased, or construction. Upon request the division
did develop figures for Fiscal Years 1958, 1959 and 1960 for these
categories, excluding proprietaries and the new building. The
cost for
about
per cent
rented and leased properties for Fiscal Year 1960 was
covering
properties. This is about a 10
increase in the cost over the 1958-59 level. The
anticipated cost for 1961 is about which is about
a 25 per cent increase in cost.
3. Only six properties were purchased in 1960 at a cost of
25X1A1A
The cost for
Fiscal Years 1958 and 1959 were about
respectively. The cost for 1961 is
25X1A1A
estimated
at 25X1A1A
4. In Fiscal Year 1960 45 construction and architectural
and engineering contracts were awarded totalling about
This was about 16 per cent higher than 1959 and about 40 per cent
less than 1958. The major commitments for construction and archi-
tectural engineering contracts are made in the fourth quarter
25X1A1A
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of the fiscal year. In Fiscal Year 1959, over half of the funds
were committed during the fourth quarter, and during Fiscal Year
1960 about 96 per cent of the annual commitment was made during
the fourth quarter. While the budgetary system of the U.S. Govern-
ment tends to encourage disproportionate commitment of funds during
the fourth quarter, the figure of 96 per cent for the fourth quarter
of Fiscal Year 1960 seriously reflects on Agency planning.
5. The Real Estate and Construction Division should maintail
running records on the levels of Agency activities with which it
is directly concerned. Those records should be analyzed from time
to time and significant trends called to the attention of the
Director of Logistics.
It is recommended that: No. 79
The Chief, Real Estate and Construction Division,
specifically assign responsibility for the development,
maintenance, and analysis of running records of those
Agency activities with which the division is directly
concerned.
6. The nuMber of people on duty as of the end of the past
three complete fiscal years has remained fairly constant, ranging
25X1 from
The number of positions in the division has
increased during Fiscal Year 1961, due primarily to the increase
of the workload of the telephone section. The proposed table of
organization dated 22 March 1961 shows an adjusted T/0 of
positions. With the exception of the manpower temporarily required
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for the move to the new building, we are inclined to believe that
positions are reasonable. There is a question as to the adequacy
of clerical assistance and the need for a full-time draftsman which
will be discussed in subsequent paragraphs. The primary problem,
except for matters pertaining to the new building, has not been
the number of positions but rather filling the positions idth
competent people, keeping them filled and keeping the people working
on the jobs that they were scheduled to do.
7. The division operates under a G8-16 who has extensive
experience as an architect and who was formerly head of the Building
Planning Staff. A high percentage of his time during this survey
was taken with matters pertaining to the new building. He appeared
to approach his job with great energy and to be capable of doing
a great deal of work personally. In general the senior people of
the division seemed to be able as individuals. However, division
responsibilities were not sharply defined and firmly placed.
8. The deputy chief has had an active role in supervising
division activities apart from the new building. The division
chief, although mostly occupied with the new building, has had
a part in division management to the extent his time would permit.
The deputy chief has given particular attention to the Utilities
Engineering Branch and the Construction Engineering Branch which
have operated on skeleton staffs. The acting chief of the Construc-
tion Engineering Branch has been working from Headquarters most
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of the past two years. A third member of the division office staff,
a GS-13 with the title of special assistant, has helped the chief
and the deputy chief in a wide variety of activities. In some
aspects he functioned in the line of command and in others he
did not. The fourth member of the immediate office of the divisim
chief is a GS-71 classed as an administrative assistant but actually
doing secretarial work.
9. The attention of the division chief to completing the new
building is essential because he is one of the few persons connected
with the problem since its inception. As the building nears com-
pletion, changes in the immediate office of the chief should be
discouraged temporarily. After the move is completed the division
chief intends to devote his personal attention to supervising the
Real Estate and Construction Division as a whole. A recommendation
on reorganization of the office of the division chief is includen
in the section of this report on the records and file unit.
10. The division chief has not had a scheduled staff meeting
since he took charge July 1960. Division personnel said that the
former division chief had so many staff meetings the staff was
weary of them. The division submits a monthly activity report to
the Director of Logistics. Branches formerly prepared a weekly
activity report for circulation within the division. The presern
division chief changed the weekly report to semi-monthly to redu_-:e
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the reporting work of the branches. We believe that this was a
progressive step, but that he should have gone further and eliminited
the internal report entirely. The monthly report to the Director
of Logistics can be circulated for information. Short regular
staff meetings have been proved a useful tool of management. If
the practices of his predecessor did, in fact, lead to excessive
staff meetings, the division chief was eminently correct in reducing
them. However, we believe he erred in eliminating them entirely.
It is recommended that: No. 80
a. The Chief, Real Estate and Construction Division,
hold brief regular staff meetings.
b. The Chief, Real Estate and Construction Division,
eliminate the semi-monthly report prepared by the branches
for internal circulation.
Records and Files Unit
11. The Records and Files Unit is under a GS-9 records officer
who formerly served as administrative assistant to the division
chief. At the time of the survey, she was assisted by one G8-5
clerk-typist. The Records and Files Unit was established as a
result of informal recomrendations by the Management Staff. Most
of the branch files, with some exceptions such as the safehouse
files, were transferred to the central unit where they are main-
tained for the division as a whole. This unit also hand3es the
distribution of division mail and various activities of a record
nature.
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12. Whatever the reasoning behind the decision to establish
a central records and files unit, we do not believe that it has
worked well in practice. It might have proved more successful
had space permitted location of the unit adjacent to the office
of the division chief. As it is, the administrative assistant,
who is actually secretary to the division chief and the special
assistant, must call for someone to watch the front office any
time she leaves, while the GS-5 clerk-typist physically separated
in the Records and Files Unit has not had enough work to keep
occupied. To compound the awkward arrangement, the deputy chief
of the division depended for secretarial assistance on one clerk-
stenographer assigned to the work of both the Construction Enginer-
ing Branch and the Utilities Engineering Branch.
13. With the shortage of clerical personnel and without a
full-time draftsman to help with engineering records, files of
the Construction Engineering and Utilities Engineering Branches
were inadequately maintained. There is little doubt that the
files are now in better order than they were before the Records
and Files Unit was established. However, their practical utility
has probably not increased, for in many cases staff meMbers in
the engineering branches will try to get their work done without
reference to the files in preference to leaving their offices,
going to the Records and Files Unit, and attempting to explain
exactly what they want. Some of the division files, such as
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documents on leases, etc., may properly be kept at a central point
for the division chief. Other files, such as working engineering
files, are more useful if they are kept in the offices of the
engineering staff. We believe the solution is to provide adequate
clerical assistance in the line branches rather than move the files
to a Records and Files Unit.
14. After the Real Estate and Construction Division passes
its work peak with completion of the new building, we believe
that the chief should reorganize his immediate office and the
Records and Files Unit. As soon as space permits, he should
locate the division's central files and the mail distributing
facilities adjacent to his outer office and have clerical help
so located as to keep his outer office covered at all times
without drafting people from the line branches.
15. The proposed table of organization does not show a clerY-
stenographer for the office of the division chief, but only an
administrative assistant. We do not believe that he needs both
an administrative assistant and a chief of the Records and Files
Unit. As a minimum, he needs one adrinistrative assistant, one
clerk-stenographer, and one clerk-typist to handle the work of
the division office including central files and mail distribution.
It is immaterial whether he designates an administrative assistant
and a clerk as a separate unit under the supervision of his special
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assistant, representing a small staff, or has one consolidated
office under his immediate jurisdiction.
It is recommended that: No. 81
a. As space and manpower permit, the Director of
Logistics direct the Chief, Real Estate and Construction
Division, to abolish the Records. and Files Unit and divide
the centralized files among the division office and the line
branches.
b. The Chief, Real Estate and Construction Division,
arrange for adequate clerk-stenographer and clerk-typist
assistance for himself, his deputy, and his special assistant
without reliance on line branch clerks.
c. The Chief, Real Estate and Construction Division,
give his administrative assistant clearly defined functions
covering the administrative needs of the division office,
excluding the duties of secretary as the primary function.
Construction Engineering Branch and Utilities Engineering Branch
16. In division terminology and in the proposed table of
organization, the Construction Engineering Branch and the Utilities
Engineering Branch are considered separate. For the purpose of
this report it is convenient to deal with both in one section.
In theory their activities are closely allied and in actual
practice, considering the shortage of manpower and the use of
common space, the two branches are substantially one. Fully
staffed and organized, they might operate as two separate branch:s
or as two sections under one branch chief, possibly a GS-15. There
are advantages and disadvantages to consolidation and the balanca
may depend upon the availability of personnel and the results of
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reshaping the division. We suggest that a statement of division
organization and functions be based on separate branches with the
chiefs as GS-1s, but that the Director of Logistics and the
division chief review the question during the latter part of
Fiscal Year 1962.
17. The Construction Engineering Branch is shown with a TbO
ofFlin the proposed organization, with one position indicated
as a foreign assignment. The position of chief, GS-14 was vacant.
In 1959 a GS-13 was designated as acting chief for the Construction
Engineering Branch and has held that title since. He has not
actually performed in that capacity, for he spent six months in
and about 15 =laths on a project at the
Train- 25X1 A6A
ing Center. He returned to Headquarters during the survey to
take over his responsibility as acting chief of the branch. The
only professional member of the branch who has been on duty full
time during the past year is a GS-12 engineer who joined the
organization in January 1960. Other employees were in and out
of Headquarters, but most of the time the GS-12 was the only
professional employee in the branch. Another staff engineer on
temporary duty returned to Headquarters about the same time as
the acting branch chief, making a total of three professional
staff members on duty. Two engineers carried on the T/0 of the
branch were detailed to the Building Planning Staff and had never
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actually seen duty in the Construction Engineering Branch. A GS-5
clerk-stenographer on the branch T/0 served as secretary to the
deputy division chief and the Utilities Engineering Branch as well.
as for the Construction Engineering Branch.
18. The Utilities Engineering Branch, which shares space
with the Construction Engineering Branch, is under a senior and
alert GS-14 engineer who has about 30 years' service with the
Government. He will reach the age of 65 in August 1961. He
objects to retirement, stating that when he transferred to the
Agency in 1952 from the Public Buildings Administration he had
the understanding that he would be permitted to work until he
was 70.
19. The proposed T/0 for the Utilities Engineering Branch
calls for four professional engineers but no clerical or draft-
ing positions. Two employees carried on the branch Tb O are
detailed to the Building Planning Staff; one has never seen
actual duty in the Utilities Engineering Branch, and the other
has been in the Deep Freeze unit of the Building Planning Staff
since August 1960. The latter employee returns to the Utilities
Engineering Staff whenever he can. During most of the past year,
the chief has had one full-time staff engineer who is soon to go
overseas.
20. The combined total of the proposed Headquarters T/0 is
13, but the two branches have had for most of the past year a
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working complement of three engineers and one clerk-stenographer.
The deputy chief of the division has given special attention to
the supervision of the two engineering branches and in a sense
served as branch chief although his duties were already complicated
by the new building project. The office of the engineering branches
contains drafting tables and equipment but the organization has
not had a full-time draftsman, and the proposed Tb O does not provide
one. Engineers do their own drafting as necessary. This is poor
economy as engineers in the higher grades take time for work that
could be done well by a professional draftsman, GS-7 or-9.
21. The Agency needs a small, highly qualified engineering
staff in the Office of Logistics. We found no evidence during
the survey that the Office of Logistics had ever had an organized
and effective engineering staff prepared to carry the Headquarters
responsibility for construction engineering and utilities engineer-
ing. Individually, we were favorably impressed with the knowledge,
experience, and apparent ability of those actually on duty. Whi:e
they did not have wide experience with the Headquarters organization
of the Agency, they do have knowledge of field problems. We believe
that personnel on duty and returning to duty know what the basic
job is in Headquarters, know what sort of an organization is nec-
essary to fulfill Headquarters' responsibility, and know how to
get the job done once the organization is established.
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22. The proposed Tb O for the two branches seems reasonable.
At this stage, we would suggest only the addition of an engineer-
ing aide for both drafting and engineering clerical work.
It is recommended that: No. 82
The Director of Logistics fill the proposed T/O's of
the Construction Engineering and Utilities Engineering
Branches as soon as personnel are freed by completion of
the move to the new building.
23. Construction engineering and utilities engineering work
is a feast-or-famine activity and the Agency should not try to
increase and decrease the size of the staff to match the varying
workload. Personnel in the engineering branches recognize that
the solution is the use of cleared consulting firms. The Utilities
Engineering Branch has one cleared consulting firm but encountered
difficulty and budget problems in regard to fees. For Fiscal Yetr
1962, the Real Estate and Construction Division has requested
$10,000 for consulting engineering fees. The Construction Engirwer-
ing Branch also needs cleared consultants. For the Agency to have
the capability for a balanced engineering effort, established
relations with private engineering firms appear essential.
It is recommended that: No. 83
The Director of Logistics provide adequate support to
the Real Estate and Construction Division through private
engineering firms.
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24. The system of reports to Headquarters on new construction
projects appears to be adequate and when the engineering branches
are properly staffed they will be in a position to exercise control
over the field projects. In the realm of engineering maintenance,
as contrasted to new construction, reports from field stations are
not adequate to permit preventive or preparatory action by Head-
quarters engineering personnel. This tends to create situations
where special trips by Headquarters engineering personnel become
necessary. Engineering costs are probably higher than would
otherwise be necessary.
25. Most stations and bases have no engineering maintenance
and construction problem, but there are a few locations where
monthly or quarterly reports by engineering or other Logistics
personnel are warranted.
installations as Project
posted on construction plans
For example, periodip reports from such
would be useful to keep Headquarters
and maintenance problems. The Diree-
tor of Logistics is justified in requesting periodic engineering
reports through the chiefs of the area divisions. Area division
chiefs may be expected to screen the requests carefully to forestall
any unnecessary reporting burden.
It is recommended that: No. 84
After consultation with the Deputy Director (Support),
the Deputy Director (Plans) direct certain overseas stations
and bases to provide periodic engineering reports to the
Director of Logistics.
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Acquisition Branch
26. The Acquisition Branch is responsible for procurement
and disposal of all Agency real property except overt Headquartem
space assigned from GSA,
Headquarters space needs
are the responsibility of the Space Allocation and Facilities
25X1A13C Branch,
station,
25X1A13C
acquisitions. The Acquisition Branch is responsible for assisting
in proprietary property procurement but is only infrequently asked
to help.
27. Directly associated with the procurement and disposal of
real property is the secondary branch responsibility of keeping
records of real estate holdings. These records serve the purpose
of property management and are a source for required reports.
Except for properties owned by some proprietary projects and
domestic safehouses, branch records are kept in the division
central file room and they are generally complete and accurate.
first noted in the 1955 Inspector General's Survey of the Office
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of Logistics. The Special Support Assistant to the Deputy Director
(Support) presented a solution in a memorandum dated 6 April 1960,
The Office of Logistics was given a list of projects that owned
property and given a value for the properties held. Details of
property holdings. Although this at first appears to confuse the
issue, the solution is sound and practical when considered in the
light of project security and the purpose of property records.
29. The branch has an Acquisition Section charged with general
real estate procurement an
dJ
This organization, which has not
been approved formally, represents a change from the past when
both sections were branches and each reported to the division chief.
The reorganization was made to improve administration and provide
a means for giving branch officers more diverse assignments. The
proposed branch T/0 will provide for seven professional and two
clerical grades. One professional and one clerical grade will
comprise the office of the branch chief.
It is recommended that: No. 85
The Director of Logistics formally approve consolidation
of the Acquisition and.Safehouse Sections of the Real Estate
and Construction Division into one branch.
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30. The Acquisition Section has a proposed T/0 of four real
estate officers. Three positions are filled and at the time of
the survey no forecast could be made regarding the fourth officer.
The section is Charged with the general procurement and disposal
of all real properties other than safehouses. Workload in the
section was divided on a geographic basis. One officer was
25X1A2E
procurements. The section is not responsible for the real propery
needs of Headquarters, but does obtain Government
site4.
31. Requirements come from a wide variety of Agency com-
ponents. Most requirements are associated with projects and have
project approval. Requirements vary in scope from the needs of
an installation such as
, to overt office space in a
city in the United States. In meeting requirements, section
personnel will comply with Agency policy by using the following
means in descending order of desirability: use of existing
facilities use of facilities surplus to the needs of other
Government components, lease (short-term preferred), purchase,
and finally construction.
32. Properties are turned over to the requesting component
for budgeting, maintenance, etc., and the section keeps only a
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records interest in the site until requirements change or the site
is disposed of. Over the years, the section has come to participate
in a greater share of acquisitions. Occasionally some Agency coml,o-
nent will bypass the section and make its own property acquisition,
but such actions are few where they used to be commonplace. The
section did not engage in property acquisitions for Agency Head-
quarters. This tends to indicate that within the Office of
Logistics the needs of Headquarters are regarded as different
from operational or other needs and thus could be placed in a
separate organization designed for meeting Headquarters service
needs.
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Space Allocation and Facilities Branch
38. The proposed Space Allocation and Facilities Branch is
to be responsible for the maintenance, repair, improvement and
space control of Agency Headquarters buildings, and for operation
of the Agency telephone system. At the time of the survey an
Allocation Section and a Telephone Facilities Section were operating
as independent entities reporting to the division chief. Like the
rest of the division, these sections are under a proposed table
of organization which has not yet been approved. The proposed
branch T/O provides forl [)ositions,1 f which are related to
the telephone system.
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39. A chief has been selected for the proposed Space Allocatim
and Facilities Branch and has been on duty in the Real Estate and
Construction Division since the latter part of 1960. At the time
of the survey he was serving as an assistant to the chief of the
Building Planning Staff, but was not in the line of command. In
preparing himself for his future position of branch chief he has
had, logically, a special interest in the affairs of the Allocaticm
and Telephone Facilities Sections. The chiefs of those sections,
knowing of the impending assignment, have taken his views into
consideration. The individual has been in the position of a
kibitzer without actual responsibility. We see no reason for
leaving him in that position. Unless he is needed for some clear
and specific assignment in the Building Planning Staff, such as
chief of a moving coordination section, the new Space Allocation
and Facilities Branch should be brought into being promptly, and
the new branch chief held responsible for it.
4o. The Allocation Section is responsible for all functions
noted above except telephones. The section has a proposed T/0 of
including
professionals and
clericals. All positions
are filled but the section is short-handed. At the time of the
survey four of the section staff, including the branch (chief, had
been assigned full-time duties with the new Building Planning Staff
and one man was processing for an overseas assignment. The sect:on
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will handle maintenance, repair, and alterations for the new
building when it is occupied. In this respect it was logical
that a portion of the staff be associated with new building
planning. The section has been too drained of personnel, however,
to be expected to carry its normal workload at half strength.
25X9A2
41. At the time of the survey, the Agency occupiel
Ibuisqlud:12.5eX9A2
ings in the metropolitan Washington area with overl
feet of area. All these buildings except 'were acquired
25X1A6A
from GSA and are therefore under GSAts over-all Government building
maintenance responsibility. To manage its maintenance activities,
GSA has organized on an area basis within Washington, i.e., State
Group, Monument Group, etc. Agency buildings, due to their wide
dispersal, come under 11 different GSA building maintenance groups.
GSA is responsible for routine building repair and maintenance and
will budget and pay for these activities. Any special requirements
due to Agency needs must be paid for by the Agency. As might be
expected, a large gray area exists on the subject of reiMbursable
and non-reimbursable work, and section personnel spend most of
their work day negotiating with GSA for various services. Agency
costs for building maintenance during Fiscal Year 1961 amounted
to slightly more than
42. Originally work within the section was allocated on the
basis of Headquarters building groups which matched the GSA organi-
zation. Personnel losses to the Building Planning Staff precluths
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any such systematic system and work is now given to whoever is
available to take on a new task. Agency component administrative
officers are authorized to serve work orders on the section and
the job will be accepted if it appears valid to section personnel
With a full staff every request was discussed and site inspected
before orders were sent to GSA. With today's personnel shortage,
requests are accepted and approved with superficial appraisal.
43. To some extent the workload has been reduced by a DD/S
order of 20 July 1960 which had the effect of eliminating all but
vital maintenance on buildings which were to be vacated. Although.
this order cut the workload, it will ultimately prove counter-
productive. GSA has now asked the Agency to vacate buildings
which the Agency thought it was going to keep, and to move into
buildings that have had only minimum maintenance because they were
scheduled for demolition.
44. One of the section's regular jobs is supervising the move-
ment of components within Agency buildings. The section has a
daily requirement on GSA for nine movers to meet this need. The:..e
is some question whether GSA will extend this service to Langley,
and this may require the Agency to provide its own routine movini;
services. A request for a T/0 increase for eight movers has been
prepared and is in process. However, nine GSA men will continue
to be requested for Agency components which will remain in
Washington.
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45. Contrary to expectations, it was found that the Allocaticn
Section was not involved in the planning for either the move to
the new building or the moves of the stay-behind components. The
Building Planning Staff was planning the move into the new build-
ing and the special assistant to the division chief was planning
the stay-behind moves. The move to the new building will be made
by a contractor under section supervision and the stay-behind moims
will be made by GSA under the guidance of the division chief's
special assistant.
46. One of the first components to move to the new building
will be the Allocation Section. At the same time, section personnel
currently assigned to the Building Planning Staff will return to
the section. The recombined staff will then take up its responsi-
bilities for the new site. Based on NSA and State Department
experiences with a new building, the section has budgeted for
for first-year changes and modifications. To handle the
buildings retained in Washington, it is planned
maintenanc
to keep a two-man staff in the city.
47. Cafeterias and some other concessions in buildings
occupied by the Agency are operated by Government Services Incor-
porated, a private enterprise under contract with the Public Build-
ing Service. The Allocation Section has the responsibility for
the working relationship with GSI and PBS and carries the burden
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of complaints, suggestions and requests for service arising within
the Agency. The chief of the Real Estate and Construction Division
and other members of the staff visit cafeterias from time to time
to check the quality of food and service.
Telephone Facilities Section
48. The Telephone Facilities Section is under a GS-11 chief
25X1A6A who works in
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and as of June 1961 was occupied with
details of moving telephone service to the Langley building. His
GS-10 deputy works in an office adjoining the Administration Build-
ing switchboard room. The section has a proposed Tb O of
operators. Direct in-dialing at the new building may slightly
reduce the need for operators; if so, normal attrition should cover
the cut.
49. During April 1961 there were instruments on the
Agency exchange, an increase of 2.6 per cent over April 1960 and
3.3 per cent over April 1959. The number of instruments has in-
creased about 49 per cent since 1954, and will jump further to
instruments in the new building are added to
remaining downtown. The following are budgeted costs for
the three-year transition period, including basic rentals, toll
charges, installation and other services:
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50. Most of the heavy increase for Fiscal Year 1962 is expllined
by a shift from the District of Columbia Public Utilities CommissLon
rates, among the lowest in the country, to much higher rates in
Virginia. Under the new rates basic rentals will increase 75 per
cent and installation costs 185 per cent. A wartime exception
still in force gives the Pentagon telephone service at District
of Columbia rates,- but the Agency could not get a similar exception.
51. In April 1961 the Agency had telephone lines,
an increase of 10 per cent over 1960 and 16 per cent over 1959. As
early as 1954 the Inspector General recommended. a critical reviev
25X1A11B
of the need for
telephones. The Inspector General's survey
of the Office of
Security
completed in December 1960 contained a
discussion of telephones
and recommendations for improving
25X1A11B
control over them. In view
of previous suggestions, this survey
can only underline the need for reducing expensive
to a minimum.
52. Most Government switchboard operators are GS-3's, but :n
1952 the Agency reclassified all its operators as GS-4's in recogni-
tion of higher standards of performance and security. In April
1958 the Telephone Facilities Section was denied reclassification
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of Agency operators to GS-5. During 1960 the Agency had a turnover
of about 30 per cent in telephone operators, which was comparable
to the Department of Defense rate. The Department of State, on
the other hand, lost only one of about 19 operators in about two
years. The Agency record during 1959 was much better with only
two operators leaving, one to retire.
53. New employees, regardless of experience, face some
problems in adjusting to Agency rules and procedures. In their
former positions they were trained to be as helpful as possible
to all callers, whereas with the Agency they are coached carefully
to withhold information. They must differentiate between categories
of staff personnel as well as inside and outside calls. However,
after they have made the first adjustment, most operators do not
find the security and performance standards of the Agency particu-
larly burdensome.
54. The chief of section, chief operator and assistant chief
operator were replaced in 1953 to correct a situation involving
discipline, orderliness and performance. New supervisors have
achieved high standards under close supervision, but operators
work under tension and their morale is not completely satisfactoy.
55. Punctuality is essential and the chief operator and her
assistant properly insist on it. They warn tardy operators twice
and charge them an hour's annual leave on a third violation within
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a "short period of time," which in practice is usually about three
months. The chief telephone operator may be unnecessarily sharp
in her warnings, but it is not the section's intent to penalize
an operator who has an occasional and unavoidable delay. We
believe that there is some confusion among the operators as to
this policy, for a number of interviews indicated an impression
that there was no leeway and no appreciation for an occasional
unavoidable situation. The chief of the telephone section should
clarify the policy in regard to tardiness. The assistant chief
operator, in the absence of the chief operator, checks with the
deputy section chief before Charging annual leave. The Chief
telephone operator should do likewise.
56. Most operators occasionally want to exchange hours with
another operator in emergencies or for personal reasons. There
is little flexibility in the present practice in this regard. Ix
the past there was more flexibility and exchanges tended to get
out of hand. It is not easy to draw the line, and the chief
operator and deputy section chief must exercise discretion. The
present practice is too strict and does not display the consideration
which employees have a right to expect. There is confusion as to
what is a justified request. We believe that some of the morale
problems in the telephone room are traceable to inadequate con-
sideration of the private problems and interests of the individuals,
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as well as to the manner and tone of criticisms in supervision.
The chief of section should put in writing the policies in regard
to exchanges of duty hours.
57. The present space arrangement makes it inconvenient for
supervisors to have private conversations with individual operators.
The deputy section chief must either ask others to leave his office
or talk to the operator in the hallway or equipment room. Some
errors should be corrected on the spot, and this usually means
within earshot of other operators. Some of the criticisms could
be delayed until the chief operator could talk to the employee in
private if she had a place suitable for that purpose. The new
building will give the chief of section and the chief telephone
operator facilities for private discussions. The law requires
that telephone operators have a rest period after two hours of
switchboard duty, and Agency employees are given 15 minutes in
the morning and 30 in the afternoon. The lounge in the new build-
ing will be a major improvement over present facilities.
58. The Agency deserves the best telephone organization in
the country. It must treat its operators accordingly.
It is recommended that: No. 87
a. The Director of Logistics direct the chief of his
Administrative Staff to review periodically the policies and
practices of the Telephone Facilities Section to insure
consistency with Agency personnel policy and practices.
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b. The Chief, Real Estate and Construction Division,
formally notify the chief and assistant chief operators of
their responsibilities for the morale as well as performance
of telephone operators.
c. The Chief, Real Estate and Construction Division,
direct the chief or deputy chief of the Telephone Facilities
Section to conduct private interviews with each telephone
operator at least once every 90 days.
59. During the severe snowstorms of early 1961 most operatory
were able to reach the telephone room, sometimes by sheer determina-
tion. They worked long hours, some sleeping in the lounge. The
suggestion of one telephone operator resulted in arrangements with
the Medical Staff to use spare beds in the dispensary. Operators
of some other agencies which have less critical need for continuous
service received letters of appreciation from their agencies.
Central Intelligence Agency operators received no letters.
6o. We believe that the entire telephone section should have
been commended for its special effort during the snow emergency.
The Director did visit the telephone room during the storm, and
this visit was gratifying to the entire section. However, no one
in the line of command between the Director and the chief of section
has visited the telephone office during the past year to express
appreciation and interest in the telephone operation.
61. The telephone exchange operates on three shifts with the
day shift working staggered hours. Security demands that there
be two operators at all times, even though there is insufficient
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work to keep the operators occupied during most of the night. On
the shift from midnight to 8 a.m. the same two operators have
worked together for over 10 years and are happy with the arrange-
ment. Operators take turns in the other two shifts and in the
staggered hours of the day shift.
62. To ease scheduling the staggered day shift, it is present
practice to give no consideration to transportation problems of
individual operators. Constant changes in working hours on the
staggered shift create some hardship. We believe that additional
consideration should be given to the preferences of operators in
assigning duty hours. When necessary, depisions can be based on
seniority.
63. There is no plan for bringing telephone operators to
their duty post during local emergencies. If one of the night
operators must leave due to illness or other unforeseen circum-
stances, security demands that she be immediately replaced. There
is no procedure whereby taxicab fares can be paid or Agency trans-
portation provided. The only Agency car available at night is
one assigned to the night security officer. We are entirely in
agreement with the view of the telephone section that responsi-
bility for getting to work rests with the operator under normal
circumstances, but we believe that the Agency has a responsibility
for assisting in emergencies.
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64. The move to the new building emphasizes the need for
emergency transportation plans for telephone operators. Prepara-
tion should be made, including use of heavy trucks if necessary,
for getting selected personnel to their duty posts in emergencies
such as severe snowstorms. This, of course, includes cable cente:r
and other personnel. In the absence of definite plans, there is
no assurance that the Agency telephone system will function prope,'ly
during emergencies.
It is recommended that: No. 88
a. The Director of logistics make definite plans to
assure that Telephone Facilities Section personnel reach
their duty posts in time of emergency.
b. The Director of Logistics explore the possibility of
reimbursing telephone operators for emergency transportation
to and from duty, and in the meantime arrange with the Director
of Security to have the night security officer provide trans-
portation in extreme emergencies.
65. Telephone information reference cards are maintained in
two colors, one for extensions given to inside callers only and
the other for extensions given to both inside and outside callers.
Information operators are pressed at times by outside callers
demanding extensions on the restricted listing. The most
troublesome callers are those who partially identify themselves
by such statements as: "I know he is with the Agency and has
an extension; I work in the same building." This pressure steno
from ignorance or lack of appreciation of the operators' problem,
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and is inexcusable. The operator can only refer the caller to
Personnel Records during the day and to the watch officer at
night. To correct the situation it appears necessary to
reinstruct all employees rather than rely only on orientation
of new employees.
It is recommended that:
No. 89
The Deputy Director (Support) arrange to remind all
employees of the Agencyts telephone information procedures,
possibly on the back cover of the telephone directory.
67. On interagency code calls the operator answers, "Central
Intelligence Agency" and rapidly completes the call with no more
conversation. We believe this procedure is simple, direct and
efficient, and should be adopted for all incoming telephone calli
regard)ess of source. This will assure faster service with no
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greater compromise to security than present use of a completely
overt number. There will be extensive publicity at the time of
the move to the new building. The change in procedure at that
time should not attract significant attention.
It is recomthended that: No. 90
Concurrent with the opening of the switchboard at the
new Headquarters in Langley, the chief of the Telephone
Facilities Section instruct switchboard operators to respond
to all incoming calls by saying, "Central Intelligence Agency."
Building Planning Staff
68. The Building Planning Staff of the Office of Logistics
was formally established with the issuance of Logistics Instruction
dated 26 November 1955. A chief was designated and
the same notice named specific individuals as liaison officers
for the DD/I, DD/P and DD/S areas. The chief of the Building
Planning Staff was charged with administration and executive
management of all matters relating to the planning of the proposed
Agency building. He was directed to provide general guidance and
direction to ensure the development and maintenance of building
requirements to meet architectural and engineering standards, and
further to ensure that requirements were in accordanee with sound
principles of security, management and economy. The liaison
officers were charged with supervising, directing, and coordinating
the requirements for all types of space by the individual Agency
units within their jurisdiction.
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69. The Building Planning Staff operated as a staff of the
Director of Logistics until July 1960, when it became a staff of
the Real Estate and Construction Division. The staff chief became
chief of the Real Estate and Construction Division at that time
and, while he retained his responsibilities for the new building,
another person became chief of the Building Planning Staff.
70. It is not within the scope of this survey to cover the
new Agency building as a project. The survey was confined to
the activities of the Office of Logistics personnel which were
current at the time of the survey and does not attempt to include
all the duties and responsibilities of the present and past chiefs
of the Building Planning Staff.
71. The death of one senior staff employee, the resignation
of another, and transfers have added to the problems of continuity
in bringing the new building into being. In addition to the first
staff chief, only two other staff members, a GS-11 and a GS-5,
have continued in work pertaining to the new building since its
inception or a year thereafter. The services of these two indi-
viduals represent value well beyond that indicated by their gradf,
for they serve not only as working members of the Building Plannjng
Staff but as points of reference for innumerable questions. The
spirit of cooperation and determination on the part of the individual
members of the Building Planning Staff is probably one reason why
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the group has been able to accomplish so much with so few people.
While we do not believe that there is clarity in the organization
and assignment of responsibility, we do believe that the chief of
the Real Estate and Construction Division and his chief of the
Building Planning Staff should be complimented for the spirited
effort of the members of the staff.
72. The present staff chief, who was formerly with the Manage-
ment Staff, assumed his position about August 1960 following the
death of his predecessor. In addition to his secretary and an
assistant who does not in practice serve in the line of command,
the chief supervises seven persons in a unit physically separated
from his office, which seemed to have no name other than the "Deep
Freeze," and one staff member who is the Agency representative at
the building site.
73. The chief of the staff has retained his responsibilities
as DD/S liaison officer or coordinator, and serves as the focal
point for the representatives of nine different DD/S offices.
The chief of the staff has also assumed personal responsibility
for coordination of the actual move to the new site. According
to the proposed table of organization, which was the only one
available at the time of the survey, three members of the Deep
Freeze unit are theoretically detailed from the Allocations
Section, two from the Utilities Engineering Branch and one from
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the Construction Engineering Branch. The seventh meMber of the
unit is a GS-5 clerk obtained from the Interim Assignment Section
while awaiting final clearance.
74. The Deep Freeze group has no chief located with the unit.
The architect serves as the central point of reference for technia1
matters, and this is accepted as a normal and proper arrangement in
the engineering climate of the office. When individual members
need a decision which goes beyond normal coordination expected of
an architect, they look to the chief of the Building Planning Staff.
In his absence, they go to the chief of the Real Estate and Construc-
tion Division. In actue] practice, they do not consider the assistant
to the chief of the Building Planning Staff as in the line of covmand.
The former staff architect, who had experience with the NSA build.-
ing and served as leader of the Deep Freeze unit, resigned recently
but returns one day a week on a consulting basis. While the group
is concerned with a wide variety of problems and projects relating
to the new building, the main activity is fitting the equipment,
machinery and furnishings into the allocated space while allowing
for access exit and working room. Members deal with problems
relating to location of telephones and other communication systems,
warning systems, heating and ventilating problems, and electrical
problems pertaining to special equipment.
75. The Building Planning Staff will expect the DD/I, DD/P,
and DD/S liaison officers, with representatives of subordinate
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offices and divisions, to carry their share of the responsibility
connected with the actual transfer. The job of coordinating the
plans and the move from the contract movers and the Public Build-
ing Administration to the representatives of component offices
falls logically to the Building Planning Staff. To the extent
that it has been necessary, the chief of the Building Planning
Staff has assumed this responsibility.
76. Space and moves of components remaining downtown is a
related problem which is being coordinated by the special assistant
in the office of the Chief, Real Estate and Construction Division.
Problems of coordination of the move, as separate but closely
related to the problems of completing the building, will increasf.
The Chief, Real Estate and Construction Division, and the chief
of the Building Planning Staff should clearly assign responsibilfty
for such problems to someone directly subordinate to the chief oi
the Building Planning Staff. Probably one officer, with one
assistant and clerical help, could coordinate planning and
execution of the move.
77. In addition
is supervisor of the
and execution of the
representatives.
As
to his over-all duties the chief of the staff
Deep Freeze unit, coordinates the planning
move, and is liaison officer for nine DD/S
the date approaches for the actual completion
of the building and the move, we believe that the chief of the
Building Planning Staff will run out of time and that some of
his responsibilities should be redelegated.
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It is recoinsiended that: No. 91
a. The Deputy Director (Support) relieve the chief of
the Building Planning Staff, Real Estate and Construction
Division, of the responsibilities of DD/S liaison officer
and designate another officer to represent him in that
capacity.
b. The Chief, Rcal Estate and Construction Division,
designate a chief of the Deep Freeze unit and give it an
appropriate name as a section under the Chief of the Building
Planning Staff.
c. The Director of Logistics direct the Chief, Real
Estate and Construction Division, to establish a section
under the chief of the Building Planning Staff with the
clearly defined responsibility of coordinating plans and
execution of the move to the new building.
78. The Deep Freeze unit appears undermanned or at least
without any reserve strength. However, the workload is not
expected to increase and the present staff can probably manage
the remaining problems of the building completion as separate
from the actual move.
79. It is inevitable that engineering personnel and others
familiar with the building will become heavily involved in the
move. Afterthoughts by some Agency components, organizational
adjustments, and prdblemc that no one could anticipate will tend
to pyramid as the move approaches. This situation had begun to
develop at the time of the survey. The Deep Freeze unit will
need additional manpower in advance of and during the move. The
Director of Logistics and the Chief, Real Estate and Construction.
Division, would be wise to arrange for reserve manpower, available
on short notice.
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80. The representative of the Building Planning Staff at the
building site is a graduate civil engineer who served two years iv
the Army and joined the Agency in the latter part of 1960. Although
he has only about six months' experience with the organization he
appears to be handling his job with competence and assurance. Hill
office adjoins that of the three representatives of the private
architectural firm, who handle his telephone messages when he is
away. He begins action with the representatives of the architects
on adjustments and changes and signs documents if the estimated
cost is under $1,000. At times he may exceed this figure after
telephone confirmation from the chief of the Building Planning
Staff, but for higher-cost items he prepares the paper work and
brings it to Headquarters for approval and signature.
81. The Chief of the Real Estate and Construction Division
and the chief of the Building Planning Staff should arrange to
have at least one or two additional people available for assign-
ment to the building site as the move approaches. The manpower
requirements are mostly temporary and should be considered as
separate from the long-term program of developing and maintaining
a full, permanent staff in the Real Estate and Construction
Division.
It is recommended that: No. 92
a. The Director of Logistics arrange the temporary
assignment of qualified DD/S, DD/I and DD/P personnel to
the Building Planning Staff during the period required to
complete the building and move Agency personnel and equipment.
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b. The Director of Logistics give priority to the assign-
ment of clerical personnel to the Real Estate and Construction
Division until the new building and the move thereto are com-
pleted.
82. In the field of employee relations as they pertained to
the move to the new building, an informative booklet with a
questionnaire was issued 19 May 1961. The Building Planning Staff
assisted with the preparation of the booklet but maintained that
it did not have primary responsibility for employee relations
aspects of the move. The Director of Personnel said that he had
offered to assume the primary responsibility but that as of
25 May 1961, it had not been assigned to him. The Assistant
Deputy Director (Support) said on that date that he was taking
immediate steps to assign primary responsibility to the Office of
Personnel.
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G. PRINTING SERVICES DIVISION
1. The charter of the Printing Services Division is in
which charges the Director of Logistics with operating
centralized printing and reproduction facilities (including
photographic) at Headquarters, advising all Agency components
on their printing problems, reviewing the distribution and use
of all reproduction equipment, and maintaining liaison with the
Government Printing Office. Specifically excepted from the Office
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2. The division has slightly over
employees at
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Virginia, a similar number in the basement of Administration
Building, 23 in K Building, 16 in Q Building, and the rest in he
division chief's office in
The chief is a GS-15
who retains active membership in the International Typographic.3.1
Union, and his acting deputy is a former GPO employee. Except
at the lowest levels, most employees are union members and rely
on GPO/union negotiations to set pay scales automatically honored
by the Agency. Indeed, the GPO and union influences are so strong
that management/employee relations in the Printing Services Division
seem modelled more on GPO than on Agency practices.
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3. In Fiscal Year 1960 the division provided about
worth of services, of which
The quality of work was consistently high, and costs were substaTI-
tially below those of commercial shops. This performance is notu-
worthy in view of the inefficient separation of facilities and
the crowded condition of the Administration Building plant.
4. Efficiency and economy in printing depend largely on
eliminating needless frills, extra colors, odd sizes, and fancy
processes. Beginning with Fiscal Year 1960 the cost-consciousne3s
of consumers has been improved by a system under which the cost 3f
every job is billed to the requesting unit. Printers keep track
of materials and of their own time, and to these are added a 50
per cent overhead charge. Totals are reported to the Comptroller,
who charges them monthly to the printing budget of requesting
units. The division's goal is 100 per cent charge-back of all
costs except equipment, research, and re-runs made necessary by
the printers' own error. During the first quarter of calendar
year 1961 the recovery rate exceeded 99 per cent.
5. The effect of this charge-back system is to make most
customers consider ways of saving money. Since the system went
into effect there has been a noticeably increased willingness to
discuss jobs in advance and let experienced production men show
how to trim expenses. The division has encouraged economy in a
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series of two-day printing seminars designed to give requisitioning
officers a basic understanding of printing and photographic methods.
As of May 1961 the division had also prepared a 30-minute trainiag
film. Such training aids should not greatly affect major customers
in the DD/I area, where publication of NIS studies alone total over
a year, but they should be more useful among the occasional
customers in DD/P divisions. In general, DD/P employees attending
printing seminars have been less numerous and lower in grade than
employees of other components.
It is recommended that: No. 93
The Deputy Director (Plans) encourage responsible offi-
cials to attend future printing seminars.
6. Most printers are under GPO or lithographic wage scalee,
negotiated by the Public Printer, and most methods follow tradi-
tional union and GPO practices. The Administration Building pltnt
was operated by GPO until 1957, when this Agency took over the
plant and 90 per cent of its employees. In some respects this
situation simplifies management by providing ready-made standar(s.
In other respects there may be complications as long-time GPO
employees learn about Agency variations from Government customs.
For example, in 1957 Agency representatives promised that Adminis-
tration Building printers transferring to the Agency payroll would
retain the pay and rights they had under GPO. Since then the
Agency has begun pressing for earlier retirement than the GPO
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limit of 70 years. Older employees, and especially those who need
a few more years to round out Government service, already are
wondering whether the Agency will keep its promise.
It is recommended that: No. 94
In considering exceptions to early retirement, the Agenc3,
Retirement Board give special treatment to employees who
joined the Printing Services Division with the promise,
expressed or implied, that their mandatory retirement age
would be the same as that in force at the Government Printing
Office.
7. In addition to the chief and acting deputy, the division
headquarters includes a GS-13 special assistant) a GS-12 photo-
graphic specialist, a GS-11 accountant who keeps charge-back
records, a budget officer, an administrative officer) and three
secretaries. The acting deputy was officially announced on
18 September 1960 and was still in an "acting" status on 1 June
1961, more than eight months later. This acting deputy previously
had been chief of the Administration Building plant, where the
Director of Logistics and the division chief should have been
able to assess his abilities. If further assessment of his per-
formance in the division's No. 2 position was required, it would
appear that an eight-month trial should be sufficient.
It is recommended that: No. 95
The Chief, Printing Services Division, appoint a full-
fledged deputy without further delay.
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8. A GS-13 production coordinator, located in the Adminis-
tration Building plant for convenience and acting under the direct
authority of the division chief, is the focal point for distribu-
ting printing assignments to the four printing facilities. In
addition, he coordinates and schedules production of a minor amount
of work done for and paid by other Government agencies such as tde
Department of State, Atomic Energy Commission, and National Security
Agency.
9. Thoroughly familiar with the facilities at each plant,
the coordinator schedules jobs according to the workloads and
equipment available. Liaison between the requestor and the plart
is conducted informally by telephone. In addition, the coordinator
keeps in touch with the reproduction officers of 33 separate Agency
components, furnishes time and cost figures, and helps choose the
least costly and most expedient methods of production.
10. Strenuous efforts are made to satisfy the customer. This
often leads to overtime that must be approved by the division chief.
Much to the dismay of employees, overtime has been so greatly
reduced in the past year that one employee complained of a loss
of
1,000 in gross pay in 1960. Overtime work is divided among
employees to afford equal opportunity for sharing in the extra :pay.
11. Plans have been approved to enlarge the present K Building
print shop when it moves into the basement of the new building,
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and to provide faster over-the-counter service there. The produc-
tion coordinator will have an office in the new building to expedite
service.
12. A small Supply and Services Staff consisting of an admiai-
strative assistant, GS-6, and two storekeepers, GS-6 and -8, undr
supervision of a GS-10 supply officer, is assigned organizationaLly
to the office of the division chief but is actually located at tile
plant. It occupies an office and 1,200 square feet
of warehouse space for receiving, storing and issuing of 600 to
Boo items of printing supplies and equipment.
13. This central supply facility supports the four printing
plants, maintains all stock control records, and is responsible
for action on all requisitions submitted by plant superintendents.
A 120-day stock level is maintained on most items. Two panel
trucks are used to expedite delivery of supplies not stocked at
individual plants. The heavier and bulkier mimeograph and map
papers which are used in great quantities are stored and issued
by the Supply Division from its direct to each
plant to avoid duplicate handling by supply personne: .
14. The rotation of Supply Division personnel into Printing
Services Division slots does not provide the continuity essential
to instruct untrained personnel in technical problems peculiar
to the printing trade. For instance, deterioration in printing
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inks and papers is well recognized by professional printers who
take precautions to use these stocks before deterioration sets it.
Also, requisitions for printing supplies may be garbled by non-
professional personnel unfamiliar with printing-trade jargon.
15. From their paint of view, Supply Division personnel dis-
like extended assignments with Printing Services Division because
of its limited supply functions and the limited opportunity for
promotion. Dissatisfaction with the assignment leads to undesirable
rotation of personnel. We believe there are several ways open to
the Chief, Printing Services Division, to remedy this situation.
Among these are to move the Supply and Services Staff (less store-
keepers) into the office of the Deputy Chief, Printing Services
Division, for closer supervision of requisitioning and procurement
procedures, or to train Printing Services Division personnel in
supply procedures.
It is recommended that: No. .96
The Chief; Printing Services Division, fill all Printing
Services Division supply slots with personnel from within the
division and place this activity under the supervision of the
Deputy Chief, Printing Services Division.
16. The
printing and photographic plant in
is the Printing Services Division's largest plant
and provides its most diversified services. The plant chief is
a GS-l4 who at one time headed all Agency printing activities
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and now has semi-autonomous responsibilities at his plant. The
building, rented through GSA, is modern and large
enough to permit uncramped operations. Its location at the frinue
of a business district makes parking difficult and its distance
from Headquarters complicates deliveries and direct contact with
other parts of the Agency.
17. The chief is assisted by a three-man production staff
of former branch chiefs. Two of these men normally schedule
printing jobs while the third schedules photographic and electro-
static reproduction. Records of work already assigned to units
and machines enable the staff to plan the flow of each new order
on a perforated job ticket. As a section finishes its part of
the job it sends back part of the ticket to the production staff,
where progress is recorded on a large wall chart.
18. The production staff handles routine liaison with requi-
sitioners, often trying to show them how a small change in forma7,
or printing process might cut costs. The staff's chief problem
is the unrealistic deadlines entered by the customers -- and often
extended quite readily When the deadlines are questioned. Even
if an unrealistic deadline can be adjusted, it adds to the staff's
work by requiring telephone consultations. Some customers have
made a habit of unreasonable demands for fast service; the produr!-
tion staff has tried to educate all and to live with the few
problem cases.
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19. When two or more rush jobs arrive at the same time, the
production staff has been forced to rely on its own judgment in
deciding which to schedule first. Some customers have insisted
on permanent blanket priorities regardless of the order at hand.
Most have been more reasonable. We doubt that any system of
priority indicators would improve matters, since habitual short-
deadline customers presumably would continue demanding top
priorities. Through long experience the production staff has
learned to use diplomacy and common sense to keep most work on
its proper schedule.
Printing Branch
20. As a rule of thumb when a printing job requires 25,000
or more impressions it is assigned to the Printing Branch at Duke
Street. A staff of
the Agency ranges from five to 18 years maintains steady produc-
tion schedules under priorities established by the production
staff.
21. Under the over-all supervision of a GS-12 printing
specialist, the branch consists of a composition section, a
camera lay-out and plate section, a press section and a bindery
section. A small four-man distribution section performs mailing
functions for both the photographic and printing branches and
under the Chief, Printing Branch, only as a matter of convenience.
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22. Ample facilities and modern equipment make it possible Uo
do excellent work. This is true whether the job entails a two-
page mimeograph run or several thousand copies of full-color off;et
printing. The inspection team was impressed with the professionalism
displayed by employees. With few exceptions, noted elsewhere in
this report, the employee-supervisor relationship was harmonious
and employees in general had high morale.
23. Specialization contributes to a certain amount of compat-
mentation within the branch, although rotation of assignments
within each section is encouraged. Offset printers, in particular,
appreciate the efforts of the chief of their section to rotate
personnel on each type of press and spread experience. One press-
man said that such a procedure was unheard of in a commercial
union shop.
24. The peaks and valleys of the production schedule afford
sufficient time for maintenance and minor repairs to equipment
which are usually accomplished by the technicians themselves.
Major breakdowns seldom occur largely due to the preventive
maintenance of a single mechanic furnished by the Supply and
Services Staff. A policy of replacing old equipment before the
machines wear out creates a feeling of confidence and pride.
Safety engineers from the Office of Security frequently check
compliance with safety precautions and the safety of the machines
themselves.
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25. Approximately 'half of the workers are paid under Govern-
ment Printing Office (GPO) wage schedules which are negotiated
annually between the Public Printer and the printing unions. The
remainder work on less complex machines or processes and are paid
under a three-step Labor Board wage scale that allows periodic
increases within grade levels. The grade held by most workers
is Ta-7, step 3, or $2.17 per hour.
26. The chief complaint made by apprentices was that they
had long since served a five-year minimum as an apprentice, had
demonstrated they were qualified to become journeymen, were
working side by side with journeymen performing the same job,
and had been repeatedly recommended by their supervisors for
journeyman status. They said they were refused advancement
because no slots were available. Investigation of this situation
reveals there is no simple solution. In order to provide incen-
tive to apprentice workmen who advance by training and service
from mimeograph and multilith operators to printers, the number
of journeyman slots must be controlled.
27. The Chief, Printing Services Division, says it is stan-
dard practice to inform all aspirants that with the number of
slots for journeymen remaining constant, the opportunity to reach
this grade is limited by the rate of rotation or departure of
persons already occupying slots. As a result, some workers face'
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long periods of apprenticeship even though it is recognized they
are qualified to become journeymen. The division chief reluctantly
but realistically accepts the fact that some workers will continue
to resent the long waiting period for journeyman status. We beleve
everything is being done to adjust to this situation and have found
no evidence of unfair treatment.
28. In operation since 1955, a night shift of 11 Labor Board
workers in the bindery section reproduces an average of 250,000
mimeographed pages of
unclassified stencilled material each
night, collates and binds five volumes totalling 2,500 books,
packages them in preaddressed envelopes and deposits them in mail
sacks for pickup and delivery by early morning courier. The night
shift is used to break in new employees, some of whom have only
provisional security clearance. Hence the working area is sealed
off from the rest of the plant.
29. This is a production-line operation that must be accom.
plished without regard to overtime involved. Slowdowns occasion-
ally occur as a result of equipment breakdown, but the worst loss
of production occurs as a result of absences or sickness. No
provision is made to offset these personnel losses so that any
reduction in the night force is immediately reflected in more
overtime. Production requirements are steadily increasing and
apparently no serious thought was given to maintaining the night
shift at full strength.
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30. Night shift workers are not overpaid at $2.17 an hour,
plus 10 per cent night differential, for steady and monotonous
manual work. As of 12 May 1961 the shift had been short two
workers (20 per cent of its strength) for several weeks. The
working supervisor, a dedicated employee with 14 years' Agency
service and more than five years as chief of the night shift,
receives a base pay of $2.66 an hour. This rate is no higher
than that paid many daytime workers with no supervisory functions.
In addition to getting out the work, the night supervisor has
regular responsibility for an isolated Agency activity and for
maintaining harmonious relations between male and female workers
of different races, some of whom are new to the Agency. These
responsibilities go beyond those of a day-shift supervisor back-
stopped by branch and plant chiefs.
It is recommended that: No. 97
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a. The Chief, Printing Services Division, instruct the
chief of the plant to develop a roster of quali-
fied substitutes to maintain the night shift at full strenEth,
and
b. The Chief, Printing Services Division, request re-
evaluation of the position of night shift supervisor to
reflect the major responsibilities inherent therein.
Photographic Branch
31. The Photographic Branch of the
plant incluces 25X1A6A
48 persons under a GS-12 chief and is divided into five section:
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electrostatic and photo copying, microphotography, graphic or larger-
negative photography, color photography, and motion pictures. The
branch itself takes few pictures; over 99 per cent of its work
consists of copying or processing pictures and film supplied by
other parts of the Agency. It is equipped for almost every type
of service except the processing of color motion pictures. The
production record for 1960 is impressive and includes processing
roughly 1,292,000 feet of Xerox microfilm, 291,000 feet of other
microfilm, and 318,000 feet of motion picture film, and making
742,000 photo enlargements, 402,000 microprints, 16,800 color
transparencies and 3,275 color prints.
32. Nearly all employees are on hourly rates which begin
under $2 and rise quite slowly. Several workers with over five
years' experience still earn less than $2.25 an hour. Such wages
do not attract experienced applicants, so the branch has been
forced to hire unskilled workers and train them by gradual pro-
gression from simple to complex operations. The employees are
acutely aware of the steps in this training ladder and the small
raises possible along the way. Hence their general attitude is
one of eagerness to score well in fitness reports and to learn
new skills.
33. Employees also were aware that, as a result of their
shift from General Schedule to Labor Board classification, a new
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branch wage structure had been submitted to the Office of Personnel.
If all raises in the proposed structure were granted they might add
$13,000 a year to labor costs for existing functions. Spread among
48 employees, this extra cost would mean a few cents more per hour
for many of the workers, to be granted when and if the branch and
plant chief felt they had earned the raise. In mid-June 1961 tbe
Photographic Branch's new pay scale had been approved and indi-
vidual raises were being processed.
34. Meanwhile the plant and branch chiefs have made a con-
scientious effort to promote good personnel relations. The branch
chief's desk is in the main working area and he is easily avail-
able to any employee. He championed the new pay structure, and
the employees know that he is trying to advance their interests.
However,.
employees are peculiarly isolated from the
rest of the Agency not only by their location but
also by their low pay and education and the repetitive and
mechanical nature of their work. Most experienced workers have
even stopped being curious about the documents and photographs
they handle; they know little about the Agency and cannot relate
their function to any broad intelligence mission. This attitude
may be good for security but it does not promot any feeling of
teamwork. It is suggested that, within reasonable security
limits, the plant chief develop an orientation program which
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will give his workers a better feeling of identification with the
intelligence community.
35. The generally low level of pay and responsibilities haE
tended to magnify in the minds of workers minor variations in
wages or titles. Both the Photographic and Printing Branches can
be divided functionally into sections of varying sizes, and each
section has a regular or acting chief who supervises work and
writes fitness reports. The chiefs of the major sections appeared
mature and competent, but some sections of three or four people
did not appear to warrant formal chiefs with real supervisory
powers. One man earning $2.87 an hour had written fitness reports
and had a voice in the promotion of his co-workers. Another
acting section chief was 28 years old and had only a grade-school
education, but supervised 11 employees. The decisions and fitness
reports of such supervisors were reviewed carefully and sometimr:s
changed on the advice of the branch chief, and often the grapevine
carried reports of the reviews and advice back to the worker.
36. Supervisory functions, especially the writing of fitne3s
reports, should remain at the level of branch or major section
chiefs. Smaller units may still be guided by foremen or crew
leaders who can organize work without sharing in formal super-
visory functions. When a branch chief is thoroughly familiar
with his workers performance, it is unnecessary and sometimes
unwise to dilute authority by over-delegation.
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It is recommended that: No. 98
The Chief, Printing Services Division, direct his plant
chiefs not to delegate formal supervision or the writing of
fitness reports below the level of branch chiefs, except in
the cases of major sections headed by mature and experienced
leaders.
37. Thc:Photographic Branch's largest regular customer is
Graphics Register, OCR, whose chief reports that the branch is
meeting deadlines and giving good service. Graphics Register htLs
its own darkroom for emergency work and relies on Navy for some
special jobs, but sends most of its routine work to
Processing Graphics Register pictures involves some extra photo-
graphics steps to join picture and caption on the same negative,
as well as having the register transmit a negative with requisi-
tions for follow-up prints* However, Graphics Register is sati-,-
fied with the arrangement, prefers to maintain its own negative
files, and reports no damage to negatives in handling and littl
loss of detail in successive copying.
38. The arrangement under which Printing Services Division
costs are charged back to the customer's budget has had one odd
effect. PSD's charge-back includes materials, labor and overhead
factors. Some potential customers have avoidedthese changes by
drawing supplies free from their building supply office and
putting their own secretaries to work on small copying machines.
This procedure costs more in the long run but does not show on
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the customer's budget. It can be controlled only by good judgm.mt
and a better knowledge of PSD's services.
39. A genuine opportunity for economy may lie in elimination
of copying and photographic facilities which may unnecessarily
duplicate those already provided by the Printing Services Division.
There appears to be no central register of such facilities, but
enough are identifiable to raise a serious question regarding
duplication. For example, a document dated 12 October 1960 and
called a "Mechanical Check List" shows that the new Agency builaing
may contain as many as 19 separate darkrooms of various types.
Some, like the Medical Staff's X-ray darkroom, obviously could
not be combined with other facilities. However, there are five
separate rooms identified as photographic darkrooms, four called,
either "Photostat darkroom" or "Photostat reproduction room,"
three microfilm darkrooms or processing rooms, two rooms with
darkroom plumbing to be installed but capped, and several other
rooms offering Xerox, Photostat, or Ozalid copying services also
available through Printing Services Division. This list does
not count simple desk-top copying machines, nor does it include
the darkrooms staying downtown.
4o. Short of surveying the entire Agency, there is no way
of telling whether all the facilities are genuinely necessary aid
no way of estimating the photographic and copying personnel costs
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hidden in T/O's under other job descriptions. The suspicion is
unavoidable, however, that a substantial saving in personnel and
equipment could be made if all possible work were concentrated
in one major plant. The present PSD Photographic Branch has
modern production-line methods and equipment and does excellent
work with comparatively cheap labor. Its output is limited by
personnel and not equipment; with a second shift the volume could
be increased greatly at no extra equipment cost. Advanced photo-
processing equipment is expensive, and we believe it would be
economical to use it fully.
It is recommended that: No. 99
The Deputy Directors (Plans, Intelligence and Support)
each name one member of an ad hn?ommittee to survey all
Headquarters photographic and mass-copying facilities,
examine their functions and justification, and recommend
means of eliminating unnecessary duplication.
Administration Building Plant
41. Plant No. 2, Printing Services Division, has been located
in the basement of the Administration Building since its establish-
ment by the Coordinator of Information in 1941. Whereas the
Department of the Army, State Department, and finally the Govern-
ment Printing Office have each temporarily held administrative
responsibility for the plant, security and control of production
have always remained under CIA or its predecessor organizations.
It was basically for this reason that in January 1957 this Agency
assumed complete supervision.
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42. The plant continues to provide special printing for ou.-
side agencies such as the State Department,' NSA and AEC on a
reimbursable basis. However, about 80 per cent of its work
involves NIS publications. Most of the rest is ONE publications
or multi-color oversize maps.
43. The plant is greatly overcrowded. Its disorderly appearance
extends into the hallways, which are filled with printing supplies
and equipment. The printing facility overflows into three separate
smaller buildings in the immediate area of the Administration
Building, and nine proofreaders are located in a single room in
the basement of East Building.
44. Ninety per cent of the employees transferred en masse
CIA at the time of the change in management, under oral agreement
that they would retain all benefits and inducements they had held
under GPO status. A few supervisory and administrative personnel
were offered and accepted reclassification to GS grade without
loss in pay.
45. With few exceptions, the concensus of those who elected
to transfer to Agency payrolls is that they have fared better
under Agency management than their colleagues who returned to
the Government Printing Office. Most employees have spent their
entire careers in commercial or Government printing and had
achieved journeyman status prior to joining the Agency. Nearly
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all are members of trade unions and depend on union negotiations
with the Public Printer for wage increases.
46. Personal interviews with more than 60 per cent of the
r?lemployees suggest that the Wage Classification Division,
Office of Personnel, while technically correct in pegging wage
scales to corresponding GPO scales, has failed to compare the
actual performance of these employees with the job descriptions
and performance of employees in other non-GPO printing establish-
ments. For instance, the Federal Aviation Agency and the Coast
and Geodetic Survey have established wage increases above those
approved by GPO for selected high-grade specialists.
47. The Chief, Printing Services Division, is faced with a
similar situation with regard to several specialists in Plant
No. 2, most of whom have 10 to 20 years' Government service and
rightfully consider it not to their best interest to give up tis
equity for higher pay in private enterprise. Unrecorded and
unverified statements alleged to have been made to GPO employees
at the time of their transfer in 1957 led many to believe that
CIA would provide progressive management in the field of personal
relations. A growing disillusionment concerning this among all
employees is reflected in an undercurrent of dissatisfaction
with present management for failure to take more aggressive
action to fight for the rights of employees. For instance, twc-
color offset pressmen employed in another agency were granted a
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wage increase of 17 cents an hour many months ago, but only in
recent weeks, after much hesitancy and delay, the Chief, Printing
Services Division, was able to obtain the same raise for the two-
color offset pressmen in Plant No. 2.
48. with the knowledge and consent of the Chief, Printing
Services Division, a committee selected by the employees them-
selves formally submitted a list of suggestions on 5 January 1901.
These suggestions dealt objectively with matters of seniority,
incentive and longevity pay, and other related problems. As of
late May 1961 no concrete action had been taken by the division
chief to present management's position on these questions.
49. In an environment so closely confined and so specialized
as Plant No. 2, whose employees know to the penny what other
printers are paid in the Washington area, it is essential that
these problems be given prompt attention to offset rumors and to
bring management and employees into closer harmony.
It is recommended that: No. 100
The Chief, Printing Services Division, establish better
employee/management communications, especially in such matt;ers
as written proposals from employee groups, by designating
senior official to meet with these groups and keep them in-
formed of progress in consideration of their proposals.
50. The position of plant superintendent has been vacant for
seven months. The effectiveness of the acting superintendent is
restricted because of his personal concern over the delay in
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confirming his selection. There is some evidence that this situa-
tion has led to a Lack of confidence among employees toward
management.
It is recommended that: No. 101
The Chief, Printing Services Division, name a superin-
tendent for Plant No. 2 without delay. .
51. Plant No. 2 has a supervisory office force of seven GS
personnel who plan production schedules, establish priorities,
set deadlines, and route job assignments to each or all of the
four branches -- Composition, Photographic, Press and Bindery.
The four branches in both day and night shifts are under foremen
whose responsibilities extend to many activities that under GPO
are distributed among several foremen. This not only justifies
the 11 cents an hour upgrade currently allowable but in some
cases warrants consideration for additional premium pay for the
foreman's versatility and the responsibilities he is directed t.)
assume.
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52. Approximately one third of the employees are assigned
to the night shift which has been in operation since 1955. The
majority so assigned accepted this shift by choice in order to
qualify for the 15 per cent differential. A few individuals with
more than five years' continuous duty on the night shift whose
family responsibilities have reached a point of tension would
like to change to day work, The present policy of permitting
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exchanges between night and day shift operators is not flexible
enough to cover all categories. For instance, two-color offset
pressmen are assigned to each shift and neither of the day shift
operators will volunteer for the night shift, so the night shift
operators cannot find relief. A system of directed rotation
would alleviate this situation, and in the cited case might
equalize assignment to undesirable shifts.
It is recommended that: No. 102
The Chief, Printing Services Division, re-examine the
feasibility of making individual adjustments between day
and night shift employees of the same category.
53. The individual competence displayed by employees is
generally high.. To encourage and preseve this quality, greater
effort should be made by management to overcome opposition to
justifiable increases in personnel. It is not efficient to
purchase an expensive two-man letter press and utilize only part
of its capability merely because the personnel ceiling would
permit only one man to be assigned. It is estimated that pro-
duction could be increased one third by the assignment of an
additional pressman on this machine.
54. Professional pride and morale could likewise be improved
by the assignment of additional helpers (at beginners' rates) on
both the day and night shifts. These helpers should perform
non-professional work that must now be done by journeymen whose
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time should be more profitably employed. The nature of the pririting
work and the classification of type and plates require that nearly
every room have a combination lock. The regular char force can
clean only the halls and one or two offices; workrooms are sup-
posed to be cleaned by PSD workers who also melt type metal, drive
trucks, or wrap packages. This arrangement is not satisfactory.
Workrooms are dark, dirty, and ill-smelling. Dirt and dust may
immediately affect the quality of photographic plates, and in the
long run may also affect employee morale and health. Faced by
this situation, some skilled workers are trying to clean and mop
their own work areas -- with the taxpayer paying for janitorial
service at nearly $4 an hour.
It is recommended that: No.103
.The Chief, Printing Services Division, study the effi-
ciency of manpower utilization at Plant No. 2 and request
additional employees where these are needed to improve the
use of machinery, assure reasonable cleanliness, and protect
morale,
55. The status of three printers' helpers, two of whom are
high school graduates with over three years' service at Plant
No. 2, should be clearly defined to give them better assurance
of opportunity to progress according to their ability. Each of
these employees wants to become an apprentice. Each has cheer-
fully accepted menial tasks, performed them satisfactorily,
worked side-by-side with accepted apprentices, and exhibited
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personal interest by attending night courses in subjects recommended
by supervisors. Thus far they have received only vague promise;
for the fulfillment of a cherished ambition. Demoralizing and
unlimited delay in announcing decisions in such cases is a hard-
ship on the individual.
56. The case of these three helpers is an example of inade-
quate understanding between employees and all levels of super-
visors. To many employees it appears that supervisors tend to
parry or evade questions and fail to provide prompt and reasonable
answers. Often the supervisors have difficulty getting answers
through the chain of command, usually because the question is
not susceptible of an tmmediate and flat yes-or-no decision. The
supervisor of the 39 night shift employees does not attend divi-
sion staff meetings, and must rely on what information the plait
superintendent relays during a brief overlap of shifts.
57. Most Plant No. 2 employees were absorbed from the GPO
four years ago and are much more familiar with GPO and union
procedures than they are with the personnel practices and services
of this Agency. They are isolated in the Administration Building
basement and have little contact with other Agency employees. It
is especially important that, within the limits of security, this
group learn more about the Agency, take advantage of services
and facilities used by other employees, and eventually come to
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consider themselves real Agency employees instead of GPO alumni
consigned to a dark basement. This indoctrination depends in
large part on the patience, sympathy and intelligence of first-
echelon supervision.
It is recommended that: No. 104
a. The Chief, Printing Services Division, emphasize
to all supervisors the need for sympathetic consideration
of employee problems or questions, including an assurance
of prompt and reasonable answers.
b. The Chief, Printing Services Division, regularly
assess the potential of employees awaiting promotion,
apprenticeship, or similar change of status, and frankly
inform such employees of their prospects.
c. The Chief, Printing Services Division, invite the
night superintendent of Plant No. 2 to attend division staff
meetings.
K Building Plant
58. The K Building printing plant is designed to give fast
service, especially in printing intelligence reports, to Agency
units housed in buildings adjacent to the Reflecting Pool. More
than half its work is for DD/P units, but it also produces the 00
series of reports and does odd jobs of copying and microfilming
for any office in that area of Headquarters. All printing and
copying is done in four rooms opposite the K Building cafeteria.
A satellite two-woman microfilming unit is housed in I Building.
59. Principal equipment is 10 small multilith presses used'.
mostly for Clandestine Services and Office of Operations reports.
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Additionally, the plant has two Xerox copiers, two Ditto machines,
a Mimeograph machine, a large Photostat copier, and the usual
cutting, perforating and binding equipment. Production in the
typical month of April 1961 included
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impressions,
ffice of Operations
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impressions of OCR
impressions,
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Intellofax cards totalling
impressions.
These totals do not reflect a substantial amount of odd-job copying
and duplicating. The plant appears busy and efficient and its two
principal customers, the DD/P and 00 officials charged with reports
production, expressed satisfaction with the service.
6o. The plant is headed by a GS-11 chief who joined OSS ir
1942 and has been handling intelligence printing ever since. Under
him are two supervisors, one a male GS-7 who oversees the multi--
11th operators and the other a female G8-5 who heads the micro-
filming unit and about whom more will be written later. In al3,
the plant has 23 employees, most of whom are at the GS-4 level
or its TR equivalent. A surprising number have been with the
Agency and its predecessors 10 or more years.
61. Large-volume production of standard reports is the
routine part of the plant's work. Added to this is the rush
copying and quick printing done on an unscheduled basis. Any
secretary may appear at the plant's counter and have small rush
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jobs done on no authority other than her signature on a condenued
3-x-5-inch requisition. This requisition (Form 7a) is honored
automatically for any job costing $25 or less, and some of the
simple copying jobs cost only a few cents. About 25 regular
customers are assigned identifying numbers once a month, and the
person asking for service enters her division's number on the
short requisition. A single Xerox copy may be ready in five
minutes and cost five cents, but the requisition nevertheless
is recorded in monthly summaries sent to Printing Services
Division's accountant so that every cost may be charged back tb
the customer's individual account.
62. We applaud the printing plant's fast service and its
use of a simplified requisition form for small orders, but we
doubt that even streamlined bookkeeping is justified on every
order. A single GS-4 clerk-typist must now consolidate requisf-
tions once a month, and the process of recording and consolidating
accounts takes a msjor part of her time. Division headquarteru
has no problem making monthly charge-backs to customers, but may
because it receives its totals already consolidated. Although we
believe the Printing Services Division's system of charging cuu-
tomers for work performed is a sound one, we do not think it
should be carried to the extreme of recording and collecting fbr
every simple copying job.
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It is recommended that: No. 105
The Chief, Printing Services Division, absorb the cost
of any job costing less than $1, eliminate cost records for
such jobs, and limit record-keeping to the simplest sticker,
tag, or handwritten notation which will assure delivery of
finished work to the proper requestor.
63. Although the K Building plant's service is good, the
morale of many employees is poor. It is normal for employees at
the lower levels to want more pay, but what concerned the inspec-
ting team was their apparent lack of identification with the Agency
and their inability to communicate adequately with their super-
visors. This lack of adequate employee/supervisor communication
was especially evident in the matter of fitness reports. Few
employees understood their own fitness reports, and many said
they had been unable to get any satisfactory explanation of thE
reports from their supervisors.
64. The plant has nine mail and file clerks, all engaged
generally in collating and distributing reports. One of these
is acknowledged to be an outstanding worker, and was given a
full grade raise as a reward for collating material faster than
anyone else. Nevertheless, every employee in this group has been
given an over-all rating of "3" in the last two fitness reports.
Asked to pick the best and the worst workers among multilith
operators, the supervisor unhesitatingly named his choices and
supported them with sound reasons. This same supervisor in his
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last two fitness reports had rated both the best and worst workers
as
"3."
65. Questioned about these ratings, the supervisor and pla-st
chief insisted they were fair and that there really was little
difference between the best and the worst. This explanation does
not ring true. Many of the employees are convinced that fitness
ratings are automatic and meaningless, and that there is little
point in asking supervisors to explain them.
It is recommended that: No. 106
The Chief, Printing Services Division, give personal
attention to employee/supervisor relations at the K Building
plant, and especially assure that (a) fitness reports are
used as a meaningful tool of personnel management, and (b)
employee inquiries receive full and thoughtful answers.
66. The assignment of "supervisory" functions has been
carried to absurd lengths in the microfilming unit situated in
a single room two buildings away from the printing plant. Here
two middle-aged women, one a GS-5 and the other a GS-4, work
alone. The 05-5 has been designated as a "supervisor" in a
2i-page single-spaced job description whose complexity and
pomposity can only be designed to impress a bureaucrat. This
"supervisor" works alongside and attempts to direct the activi-
ties of the GS-4, who herself has nine years' experience in a
fairly mechanical job. The 05-5 writes and signs fitness reports
on her co-worker, who refused to sign her last report on grounds
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69. Approximately 80 per cent of the f-----] monthly operating
expense is for personal services. Sixteen Labor Board employees
work in three shifts, six days a week, to reproduce an average of
30 ORR, OSI and OCI classified and code-word publications a moth
and perform additional printing services for ONE and the United
States Intelligence Board. OCI publications absorb 75 per cent
of the total effort. Reproduction of the Current Intelligence
Digest (1500 copies averaging 50-60 pages each) constitutes the
largest volume of work. Daily publication of 350 Current Intel-
ligence Bulletins, running to 15 pages and one to four color
graphics each, begins after midnight for early morning distri-
bution to 245 Agency and 99 external addresses.
70. Priorities for the Q Building print shop are controlled
by the Production Staff of OCI. A member of this staff checks
print shop operations daily and sometimes hourly, and can hold
the press for additions or corrections. Working as a team, the
plant superintendent and the OCI Production Staff have developed
printing techniques, particularly in the reproduction of color
graphics, that are not normally achieved by the multilith process
71. All print shop employees including the superintendent
are paid under Labor Board wage scales ranging from TB-9 ($2.1(
per hour) to LB-20 ($3.75 per hour). Most of the workers are
classified as LB-12 offset press operators, but are required to
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perform photographic or bindery work. It is not unusual for one
man to perform singlehandedly the photographic, layout, plate
making, press and bindery operations necessary to produce a
single publication.
72. .0f the 16 employees, seven including the superintendert
are assigned to the regular day shift (8 a.m. - 4:30 p.m.),six to
the night shift (3:30 p.m. - 12 p.m.), and three to a midnight
shift (12 p.m. - 8 a.m.). The supervisor of the night shift
theoretically supervises the midnight shift but is not actually
present except in emergency.
73. The midnight shift presents both a staffing problem ard
a problem of supervision that is still unresolved. The recent
addition of two men to the night shift to do the technical wori_
formerly assigned to the midnight shift has partially eased this
situation. Further effort is needed to staff the night shift
with thoroughly competent personnel. The personal interest of
the President in the Current Intelligence Bulletin has intensified
efforts to produce a larger, completely accurate and professionally
turned-out document.
It is recommended that: No. 108
The Chief, Printing Services Division, increase his
efforts to staff the midnight shift at Plant No. 4 with
professionally competent personnel and provide a full-time'
supervisor.
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