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FAS Intro: In addition to the $2.7 billion in secrecy-related costs incurred by government agencies, nearly $3 billion was spent last year on classification-related activities by government contractors in industry, as described in the following report to Congress.

Information Security Oversight Office
National Archives and Records Administration
700 Pennsylvania Avenue NW
Washington, DC 20408

June 26, 1996

The Honorable Jim Lightfoot, Chairman
Subcommittee on Treasury, Postal Service and General Government
Committee on Appropriations
House of Representatives
B-307 Rayburn House Office Building
Washington, DC 20515

Dear Mr. Chairman:

In our letter to you dated April 30, 1996, the Information Security Oversight Office provided the total Federal Government security classification cost estimates for Fiscal Years 1995 and 1996, as requested in House Report 104-183. The estimates totaled $2,705,938,957 for FY 1995 and $2,741,987,125 for FY 1996. [As noted in our letter of April 30, these estimates do not include data from the Central Intelligence Agency or the Office of National Drug Control Policy.]

In that letter we also stated that we would provide the industry cost estimates (contractor costs) for the use and protection of classified information within industry as soon as they were completed and provided to us. We have just received the estimate for industry for 1995, which is $2,933,901,000. The 1995 cost estimate totals pertain to the twelve month accounting period of the most recently completed fiscal year of each company that was part of the industry sample. For most of these companies, their fiscal year ended on December 31, 1995. An estimate for 1996 was not available, but will be provided in the next collection period.


Steven Garfinkel

cc: The Honorable John W. Carlin, Archivist of the United States

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