April 28,1997
Dear Mr. Chairman:
On behalf of the Archivist of the United States, I am pleased to provide the total security classification cost estimates for executive branch agencies during FY 1996; the projected security classification cost estimates for executive branch agencies for FY 1997; and the total security classification cost estimate for industry during 1996.(*) House Report 104-660, which accompanied the Treasury, Postal Service, and General Government Appropriations Act for 1997, asked for these estimates.
The security classification cost estimates for executive branch agencies total $2,633,467,906 for FY 1996. This represents a three percent reduction from the estimates provided you last year for FY 1995. These same agencies project such costs at $2,663,652,469 for FY 1997. The estimate for industry (contractor costs) for 1996 totals $2,604,858,000. This represents an 11 percent reduction from the estimate provided you last year for 1995.
At Tab A, please find enclosed a table listing by agency their cost estimates for FY 1996, and their projected cost estimates for FY 1997. The total for each agency includes costs associated with six categories: (1) personnel security; (2) information security, which includes both classification management and information systems security; (3) professional education, training and awareness; (4) physical security; (5) security management, oversight and planning; and (6) unique items. Neither the enclosed table nor the totals provided in this letter include the cost estimates of the Central Intelligence Agency, which are classified. We understand that these estimates will be made available to the Intelligence Committees of the House and Senate.
At Tab B. we enclose a copy of the Information Security Oversight Office letter dated January 17, 1997, directing departments and agencies to provide cost estimates associated with classifying and safeguarding classified information based upon instructions included with the letter. As was the case in last year's collection, the instructions tell agencies to report any cost for which 51% or more of a resource is used for classification related activities. Some agencies with very small security classification programs again reported costs even though this threshold was not met. Additionally, several of the agencies provided explanatory information concerning their cost estimates in their individual reports. At your request, we will be happy to provide you with the individual report for any or every agency listed on the table.
Sincerely,
Steven Garfinkel
Director
Enclosures
cc: The Honorable John W. Carlin
Archivist of the United States
*The 1996 cost estimate for industry pertains 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, 1996. A projected estimate for 1997 is not available, but will be provided to the Information Security Oversight Office next year. We will, of course, provide it to you upon request.
TOTAL TOTAL
SECURITY CLASSIFICATION SECURITY CLASSIFICATION
COSTS PROJECTED COSTS
FOR FY1996 FOR FY 1997
$2,633,467,906 $2,663,652,469
Reporting Agencies
Department of Agriculture
Department of Commerce
Department of Defense
Department of Energy
Department of Health and Human Services
Department of Justice
Department of Labor
Department of State
Department of Interior
Department of Treasury
Department of Transportation
Department of Veterans Affairs
Environmental Protection Agency
Executive Office of the President, Office of Administration
Export-lmport Bank of the United States
Federal Emergency Management Agency
Federal Reserve Board
General Services Administration
Marine Mammal Commission
National Aeronautics and Space Administration
National Archives and Records Administration
National Science Foundation
National Security Council
Nuclear Regulatory Commission
Office of Management and Budget
Office of National Drug Control Policy
Overseas Private Investment Corporation
U.S. Agency for International Development
U.S. Arms Control and Disarmament Agency
U.S. Information Agency
U.S. Peace Corps
U.S. Trade Representative
SECURITY CLASSIFICATION SECURITY CLASSIFICATION AGENCY / DEPARTMENT COST ESTIMATES PROJECTED COST ESTIMATES FOR FY 1996 FOR FY 1997 Department of Agriculture $1,546,500 $1,442,000 Department of Commerce $9,469,491 $9,980,185 Department of Defense $2,418,123,000 $2,449,812,000 Department of Energy $92,741,000 $96,082,000 Department of Health and Human Services $255,500 $321,900 Department of Justice $29,822,959 $22,014,317 Department of State $34,857,000 $33,819,000 Department of Interior $2,149,700 $2,159,400 Department of Treasury $12,188,000 $12,619,000 Department of Transportation $2,941,000 $3,758,000 Department of Veterans Affairs $8,570 $6,500 Environmental Protection Agency $466,000 $495,000 Executive Office of the President, Office of Administration $218,000 $305,000 Export-Import Bank of the United States $51,000 $93,000 Federal Emergency Management Agency $281,000 $426,000 Federal Reserve Board $327,000 $337,000 General Services Administration $732,000 $640,000 Marine Mammal Commission $1,000 $1,000 National Aeronautics and Space Administration $9,497,200 $7,632,700 National Archives and Records Administration $8,467,000 $9,209,000 National Science Foundation $63,500 $78,500 National Security Council $136,000 $139,000 Nuclear Regulatory Commission $2,551,400 $2,695,400 Office of Management and Budget $59,000 0 Office of National Drug Control Policy $1,296,000 $1,800,000 Overseas Private Investment Corporation $40,000 $195,000 U.S. Agency for International Development $1,600,986 $3,172,911 U.S. Arms Control and Disarmament Agency $1,210,000 $960,000 U.S. Information Agency $1,763,100 $2,427,400 U.S. Peace Corps $147,500 $136,250 U.S Trade Representative $350,000 $396,000 TOTAL $2,633,467,906 $2,663,652,469