DEAR MR. STOCKMAN:

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP87B01034R000100010007-6
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 2
• Document Creation Date: December 19, 2016
• Document Release Date: November 7, 2006
• Sequence Number: 7
• Publication Date: April 5, 1984
• Content Type: LETTER

~. Approved For Release 2006/12116 :CIA-RDP87B01034R000100010007-6
United States
Office of r-, _ ~ {
Personnel Manageme~~. ; ?hm~,,>D.c.2oals
3 ~~ APR 5
fIonorable David A. Stockman ?
i~ n.,i,, a.~., To
~3. ~9
Director ?+ .. ?.. `L'r'
Office of Management and Budget (OEO$) '' ~~'~~~-I,CE UAIT
17th and Pennsylvania Avenue, N.W., Room 252
Washington, D.C. 20503
qpR 5 1984
I have enclosed for the President's signature a proposed Executive order
to amend Executive Order 12171 (as amended) for the purpose of exempting
OPM s Personnel Investigations Program (PIP) from the Federal Labor-Manage-
ment Relations (FLMR) Program requirements in chapter 71, title 5, United
States Code. We are seeking the exemption under section 7103(b), title
5, United States Code, because of the direct impact that our investigative
personnel have on the national security.
OPM's investigative personnel are engaged in "investigative, or national
security work." A basic authority for background investigations conducted
by OPM on Federal applicants and appointees is Executive Order 10450 (as
amended). Section 8(a) of the Order requires that investigations conducted
by OPM and other agencies "be designed to develop information as to whether
the employment, or retention in employment in the Federal service of the
person investigated is clearly consistent with the interests of the national
security." A significant percentage of the background investigations OPM
conducts are on persons considered for access to Sensitive Compartmented
Information (SCI) under Director of Central Intelligence Directive No.
1/14, and to Top Secret, Secret and Confidential information and materials
under Executive Order 12356. The responsibilities of persons investigated
by OPM frequently involve some of the most sensitive national security areas
of government, including investigations, personnel security duties, space
''exploration, rocketry, informational activities overseas, high level policy
development and approval, and fiduciary or other duties involving the highest
degree of public trust.
Approximately 60 percent of the Background Investigations (BIs) we conduct
are far Top Secret clearance on contractor personnel for the Department of
Energy under the Atomic Energy Act of 1954 (as amended - 42 USC 2165). Most
of these personnel have direct regular access to, and work with, highly
sensitive information and materials concerning nuclear weapons development
and production. Many are engaged in the actual manufacture of such weapons.
Approved For Release 2006/12116 :CIA-RDP87B01034R000100010007-6
 Approved For Release 2006/12116 :CIA-RDP87B01034R000100010007-6
Honorable David Stockman
A number of offices performing the same kind of investigative functions as
OPM are exempted by E.O. 12171. These are:
? The Defense Investigative Service, Department of Defense -- mayor
function
? The Drug Enforcement Administration, Department of Justice -- one of
several functions
? The Office of Inspections and Investigations (AID) -- one of several
functions
? The U.S. Secret Service -- one of several functions
? The Office of Investigations, U.S. Customs Service -- one of several
functions
Our mayor customer, the Offices of the Assistant Secretary for Defense
Programs, Department of Energy, is also exempted. The CIA and FBI, which
conduct background investigations, are exempted by chapter 71, title S,
United States Code. To my knowledge, OPM is the only agency with a signi-
ficant background investigations program not exempted from the FLMR Program
requirements.
One of my responsibilities as Director of OPM, is to monitor the effective-
ness of the Government's civilian personnel security program under E.O.
10450. This responsibility includes making recommendations for needed im-
provements. The exemption being proposed for our Personnel Investigations
Program is clearly warranted under S USC 7103(b). It is required to
provide our investigations program officials with needed flexibility in
managing investigative workload to assure timely, cost-efficient investiga-
tions to meet the national security employment and access requirements of
agencies Governmentwide.
Your approval of the enclosed Executive order and recommendation to the
President for its signature are requested.
??Please contact me if there are any issues that you wish to discuss.
Our Assistant Director, Office of Personnel Investigations, Mr. Peter.Garcia,
and his staff are available on 632-6181 to answer a~+ questions your staff
may have concerning the enclosure.
Sincerely,
Donald J. Devine
Director
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