BUREAU OF ENGRAVING AND PRINTING 

STRATEGIC PLAN 

2003-2008 
BUREAU OF ENGRAVING AND PRINTING 

STRATEGIC PLAN 2003-2008 

Table of Contents 

 Page Number

Message from the Director 1 

Executive Summary 2 

 

Section 1 Overview of the Bureau of Engraving and Printing 4 

Section 2 Vision and Mission Statements 6 

Section 3 Strategic Goals 7 

 Strategic Goal I: Customer Satisfaction 8 

 Strategic Goal II: Quality Manufacturing 10 

 Strategic Goal III: Counterfeit Deterrence 13 

 Strategic Goal IV: Security and Accountability 15 

 Strategic Goal V: Resource Management 18 

Linking Treasury Goals and Objectives 

to Bureau Goals 21 

Section 4 Management Strategies 23 

 Human Resource Strategy 23 

 Research and Development Strategy 23 

 Information Technology Strategy 24 

 Business Process Strategy 24 

APPENDICES 

Appendix 1 Strategic Planning Process 27 

 Purpose of this Plan 27 

 Responding to Change through GPRA 27 

 Strategic Planning Efforts 27 

Appendix 2 Measuring Performance 29 

 Program Evaluations 29 

 Linkage to Annual Performance Plan and Budget 31 

 Linkage to Other Plans 32 

 

Appendix 3 External Factors Affecting the BEP Strategic Plan 34 

Appendix 4 Cross-Cutting Issues 37 

Appendix 5 Consultation with Stakeholders 38 

Appendix 6 Steps to Disseminate the Strategic Plan 40 
MESSAGE FROM THE DIRECTOR 

The Bureau of Engraving and Printing has a long history of manufacturing security 

documents of the highest quality for the Federal Reserve, the U.S. Postal Service and 

other government agencies. 

This Strategic Plan furthers our commitment to maintaining state-of-the-art production 

capability, product quality and security, and employee safety and environmental 

stewardship as we continue to cost effectively meet the needs of our customers and the 

American public. During the next 5 years, we will be phasing out and terminating our 

work for the U.S. Postal Service. Our Plan provides a roadmap to effectively and 

efficiently transition the Bureau to focus on one major product, U. S. currency. 

 

Looking forward, our goal is 100% customer satisfaction with our products, produced by 

a highly qualified and motivated workforce that has access to the latest equipment and 

technology. The Bureau’s employees have always been our most important resource and 

continue to rise to the challenge of maintaining our reputation as the world’s premier 

government securities printer. 

I want to thank all of the employees of the Bureau, as well as our stakeholders and 

customers, for their input and support of the Bureau’s Strategic Plan. 

Thomas A. Ferguson 

 Director

1 
EXECUTIVE SUMMARY 

The purpose of the Bureau of Engraving and Printing (BEP) Strategic Plan is to present 

the strategies that will be used to accomplish its mission over the next five years and to 

support the Department of the Treasury Strategic Plan. This plan defines the Bureau’s 

core business, emphasizes key strategies to achieve business objectives, and provides 

measures of success. The plan includes the BEP manufacturing goal, as well as 

supporting goals. The President’s Management Agenda (PMA) guided the development 

of this Strategic Plan. As the Bureau is a manufacturing organization, the PMA’s 

overarching goal of improving performance is critical to the accomplishment of its 

mission. 

The Bureau’s core mission is to design and manufacture high quality security documents 

that meet customer’s requirements for quantity, quality, and performance as well as deter 

counterfeiting. The major customer is the Federal Reserve System, which, with the phase 

out of the postage program by 2005, will provide approximately 97% of the Bureau’s 

annual revenue of about $500 million. In late 2003, the Government will be issuing 

currency with new designs and security features to maintain the integrity of the currency 

system. The first denomination issued will be the $20 note in late 2003. The subtle 

introduction of background color in the redesigned currency makes it safer, smarter and 

more secure. The issuance of the new $20 note will be followed by a new $50 note in 

2004 and a new $100 note in 2005. 

The Bureau’s commitment extends beyond meeting demand projections to providing 

products of value with quality features required by all customers. This is reflected in the 

performance measure for the percent of currency notes delivered to the Federal Reserve 

that meets customer quality requirements. The Strategic Plan has specific measures 

regarding product durability and its ability to function in the economic system; e.g., fewer 

notes returned because features do not function as intended in the cash system. 

The plan also addresses the resources that are necessary for the Bureau to meet the 

projected design, quality, and quantity requirements for its products over the next five 

years. This includes security and accountability, asset management, information 

technology, and human resources. The Strategic Plan emphasizes modernizing and 

streamlining the Bureau’s infrastructure through facility renovations, including the 

addition of a tour at the Western Currency Facility, expansion for process modification, 

production equipment upgrades and replacement, and environmental control system

upgrades and expansion. The Bureau also has a strategic initiative to ensure the 

continuity of operations of essential functions in the event of an emergency. 

The Strategic Plan places appropriate emphasis on two resource areas critical to success 

in today’s competitive environment: information technology (IT) and human resources. 

The Bureau will leverage technology and employ appropriate Government and Treasury 

e-Gov initiatives to increase the efficiency and effectiveness of the Bureau’s production, 

financial and accountability systems and to enhance BEP’s service to our customers and 

business partners. As a prerequisite for the achievement of all these goals, the Bureau 

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must have a capable, motivated workforce with the skills required for 21st century 

manufacturing. The human resources components of the plan are designed to ensure that 

the Bureau maintains such a workforce. 

Organization of the Strategic Plan 

This Strategic Plan covers years 2003-2008. Section 1, Overview of the Bureau of 

Engraving and Printing, presents historical and current information on the functions of 

the Bureau. Section 2 lists our Vision and Mission Statements. Section 3, Strategic 

Goals, lays out our 5 goals and details what they are, how we plan to achieve them, and 

how we will measure our success on an annual basis. Section 4, Management Strategies, 

puts the strategic goals in the context of our overall management philosophy. Section 5, 

Strategic Planning Process, discusses the formulation and purpose of the plan. Section 6, 

Measuring Performance, discusses the program evaluations we have done and intend to 

do to improve our planning process and the linkage of the Annual Performance Plan to 

the Budget. Section 7, External Factors Affecting BEP, considers economic, political, 

and technological trends beyond our direct control but for which we can make educated 

predictions about the effect on our operations. Section 8, Cross-Cutting Issues, discusses 

those issues that transcend our Bureau and our coordination of those activities. Section 9, 

Consultation with Stakeholders, details our relationship with our customers and the 

public and what efforts we have made to create satisfied customers and stakeholders. 

Section 10 describes the steps to disseminate the Strategic Plan. 

3 
Section 1 

OVERVIEW OF THE BUREAU OF ENGRAVING AND PRINTING 

The Bureau of Engraving and Printing has been in operation for 141 years. Created by an 

Act of Congress in 1861, the Bureau came into existence a year later to print Federal 

paper currency starting with one dollar and two dollar currency notes. Housed in a part 

of the south wing of the Treasury Building, the operation flourished and, by 1880, had 

outgrown its location. The next home of the Bureau was at 14th and Independence 

Avenue (now the Auditor’s Building) and was specially constructed to be fireproof and 

secure. In 1894, the Bureau began printing postage stamps and other security documents 

and moved again in 1914 to its current Washington home at 14th and C Streets, S.W. In 

1938, the Annex Building was completed and, in 1990, the Western Currency Facility in 

Fort Worth, Texas, was completed. As BEP has progressed through these facilities, it has 

adapted to many varieties of silver, gold, Treasury, and eventually, Federal Reserve 

notes. The Federal Reserve is the Bureau’s primary customer and, with the phase out of 

postage stamp production in 2005, the manufacturing of U.S. currency will account for 

approximately 97% of all revenue. 

In 2003, the Bureau delivered 8.1 billion notes the Federal Reserve System and 9 billion 

stamps to the Postal Service. The current manufacturing facilities in Washington, DC

and Fort Worth, Texas employ approximately 2600 individuals. 

The Bureau is the Government’s security printer. Its customers and stakeholders expect 

the highest degree of security. The Bureau continues to maintain the highest levels of

security at its facilities and seeks to improve wherever possible. 

In addition to maintaining a secure physical environment, the Bureau ensures security of 

its products by incorporating counterfeit deterrence features into currency. The Bureau 

conducts extensive research into improving the security features of the currency as well 

as improving the durability of life expectancy of the notes. Additionally, the Bureau 

belongs to several international governmental organizations that share research and 

development data on banknote improvement. 

The Bureau also provides services to the public. The tour of BEP manufacturing 

operations and the Visitor’s Center are among the most popular attractions in the 

Nation’s Capital. A tour of the Western Currency Facility is scheduled to begin in 2004. 

The Bureau sells uncut currency sheets and other specialty items by mail, via the Internet, 

and at the Visitor’s Center. It also processes claims for redemption of damaged paper 

currency. 

The Bureau operates under a revolving fund and does not receive Congressional 

appropriations. Through product sales, the Bureau recovers the direct and indirect costs 

of operations, administration, and research and development, and generates sufficient 

funds for capital investment and to maintain working capital. 

4 
While manufacturing currency and other printed securities is the core business of the 

Bureau, the production operations are highly dependent on the effectiveness of support 

processes such as security, procurement, information systems, financial management, 

product accountability, human resources management, engineering, research, product 

development, and maintenance. Only when these processes work in concert can the 

Bureau be responsive to the needs of is customers.

5 
Section 2 

BUREAU OF ENGRAVING AND PRINTING 

VISION STATEMENT 

To be a world-class securities printer providing our customers and the public superior 

products through excellence in manufacturing and technological innovation. 

MISSION STATEMENT 

To design and manufacture high quality security documents that meet customer 

requirements for quality, quantity, and performance and that deter counterfeiting. 

6 
Section 3 

STRATEGIC GOALS 

Five strategic goals – Customer Satisfaction, Quality Manufacturing, Counterfeit 

Deterrence, Security and Accountability, and Resource Management – have been 

established to guide the Bureau in achieving its mission. These strategic goals will guide 

actions we need to take now and during the next five years. Success in accomplishing the 

strategic goals will be reflected in improved performance as measured by our annual 

performance over five years. 

Strategic Goal I: Customer Satisfaction – Satisfy the Federal Reserve Board and the 

public by providing responsive service and quality products.

Strategic Goal II: Quality Manufacturing – Manufacture state-of-the-art currency of 

consistently high quality while improving productivity and cost performance. 

Strategic Goal III: Counterfeit Deterrence – Produce state-of-the-art currency that 

deters counterfeiting, contributes to public confidence, facilitates daily commerce, and 

extends the useful life of notes in circulation. 

Strategic Goal IV: Security and Accountability – Ensure an environment of 

comprehensive security and accountability for the Bureau’s personnel, facilities, and 

products. 

Strategic Goal V: Resource Management – Manage Bureau resources to increase 

internal efficiency and effectiveness in support of the other strategic goals. 

7 
Strategic Goal I: Customer Satisfaction 

Satisfy the Federal Reserve Board and the public by providing responsive service and 

quality products. 

Starting Point – The Bureau continually seeks feedback from its customers and has 

established standards of performance with the Federal Reserve. In April 2001, the 

Bureau was registered as an International Organization for Standardization (ISO) 

compliant firm for currency and intaglio ink production under the 1994 version of the 

standard. In May 2003, work was completed for the transition to compliance with the 

2000 standard, which also cover ancillary processes, as well as quality planning, 

customer focus, and continuous improvement. 

In Calendar Year 2002, the Mutilated Currency Program processed 29,000 claims and 

redeemed $96 million of damaged currency from the public. The Bureau responded to all 

inquiries and currency redemption claims promptly in compliance with standards that 

resulted in positive customer feedback. 

The events of September 11, 2001, have resulted in increased security considerations and 

requirements for the Bureau tour in Washington, as well as periodic closures due to 

heightened security alerts. The Bureau remains one of the more popular public tours in 

the city and most people have reacted positively to the new requirements. Plans continue 

to open a tour at the Bureau’s Fort Worth Facility by April 2004. 

Strategic Objectives 

Success in achieving the customer satisfaction goal will be measured by using the 

following strategic objectives: 

1. Provide high quality currency required by the Federal Reserve Board in a timely 

and cost-effective manner. 

2. Improve the performance of U.S. currency notes in circulation. 

3. Achieve a high level of public satisfaction with the public tours, public sales, and 

currency redemption services. 

Means and Strategies 

The Bureau’s capability to provide complete customer satisfaction is inextricably linked

to successful achievement of its strategic goals related to manufacturing, counterfeit 

deterrence, security and accountability, and resource management. 

The Bureau will: 

• Meet the Federal Reserve Board’s expectations for timeliness of currency deliveries. 

8 
• Meet the Federal Reserve Board’s expectations for quality of currency notes. 

• Assure that currency design changes facilitate the public’s usage of currency through 

coordination and communication with the Federal Reserve Board and the 

manufacturers of automated vending and cash handling equipment. 

• Improve the safety and comfort of the BEP tour as well as its physical infrastructure 

in Washington, DC and in Fort Worth, TX. The Fort Worth tour is scheduled to open 

in 2004. Keep the educational displays current with design changes in the currency. 

Promote cooperative relationships with tour operators, school officials, and Congress. 

• Improve the availability of souvenir sales items to the public through mail order, the 

Internet, and the Visitor’s Center. 

• Ensure compliance with currency redemption standards for timeliness and quality 

resulting in positive customer feedback. 

Customer Satisfaction Strategic Objectives and the Annual Performance Plan 

One or more key performance indicators relating to each strategic objective will track 

progress toward the strategic goal. These performance indicators will be fully developed 

in the Bureau’s Annual Performance Plan. The relationship between the strategic 

objectives and performance indicators is illustrated below. 

Strategic Objective Performance Indicator/ Source of Data 

Measure 

Meet FRB delivery requirements BEP/FRB 

cost effectively. 

Provide high quality 

currency to the FRB in a 

timely and cost-effective 

manner. 

Productive meetings on techni- BEP/FRB 

cal information exchange with 

FRB and equipment manufacturers prior to issuance. 

Improve the performance of U.S. currency 

notes in circulation. 

Meet or exceed best practices in BEP 

customer responsiveness. 

Achieve a high level of 

public satisfaction with 

the public tours, public 

sales, and currency 

redemption services. 

9 
Strategic Goal II: Quality Manufacturing

Manufacture state-of-the-art currency of consistently high quality while improving 

productivity and cost performance. 

Starting Point – The Bureau was able to focus efforts on attaining certification for its 

currency quality management system under the internationally recognized ISO 

(International Organization for Standards) 9001 standards. 

In April 2001, the Bureau was registered as an ISO 9001 compliant firm for the currency 

and intaglio production operations under the 1994 version of the standard. In May 2003, 

work was completed for the transition to compliance with the 2000 version of the 

standard. In addition, ancillary processes such as intaglio, offset and surface piece plate 

manufacture and specialty roller manufacture were added to the scope of the registration, 

as was offset printing for the new currency design. The primary improvements to the 

2000 standard over the 1994 standard are quality planning, customer focus, and 

continuous improvement. Routine continuous assessments by our registrar will be 

conducted on a 6-month cycle in Washington, DC and a 1-year cycle in Fort Worth, 

Texas. Re-certification will be required in 2006, probably to an even-later (yet to be 

developed), version of the ISO standard. 

In 2003, the Bureau’s ISO certified currency manufacturing operation produced and 

delivered 8.1 billion Federal Reserve Notes to the Federal Reserve System. For 2004, the 

Federal Reserve System has ordered 9 billion Federal Reserve Notes. 

During 2003, the Bureau delivered approximately 9 billion postage stamps to the U.S. 

Postal Service (USPS). In 2004, the USPS has ordered 7 billion stamps. This is 

consistent with the five-year interagency agreement with the USPS that plans for the 

phase out of the production of postage stamps at the Bureau by the end of 2005. 

Strategic Objectives

Success in achieving this strategic goal will be measured by the successful completion of 

the following performance goals: 

1. Improve the quality, productivity, and cost effectiveness of the Bureau’s core 

manufacturing processes. 

2. Maintain average outgoing quality level and reduce spoilage losses. 

3. Maintain and upgrade International Organization for Standardization (ISO) 

Certification.

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Means and Strategies

The Bureau will: 

• Continue to invest in new technology that will ensure continued increases in the 

quality of manufactured products, provide for increased productivity, and assure our 

ability to meet Federal Reserve requirements. 

• Reduce assignable causes of variability in currency manufacturing. Assist 

manufacturing personnel in using process data analysis to improve operations. A 

Spoilage Reduction Team, representatives of printing, processing, evaluation, and 

quality personnel has been established to identify causes of high spoilage and initiate 

corrective actions. 

• ISO compliance is verified by periodic audits of the Bureau’s quality management 

systems by an independent ISO designated firm. Periodically the International 

Organization for Standardization updates the quality standards, thereby, requiring 

organizations already ISO certified to upgrade their quality management systems in 

order to maintain certification. 

• Develop standards for excellence (quality standards) for responding to customer 

requirements. 

Manufacturing Strategic Objectives and the Annual Performance Plan

One or more key performance indicators relating to each strategic objective will track 

progress toward the strategic goal. These performance indicators will be fully developed 

in the Bureau’s Annual Performance Plan. The relationship between the strategic 

objectives and performance indicators is indicated below. 

Strategic Objective Performance Indicator/ Source of 

 Measure Data 

Improve the quality, pro- Meet projected costs for currency. BEP 

ductivity, and cost effectiveness of the Bureau’s Meet annual goal of number FRB/BEP 

core manufacturing of notes returned by Federal 

process Reserve due to manufacturing 

 defects.

 

Meet annual goal of number of FRB/BEP 

 notes returned by the Federal 

 Reserve due to counterfeit 

 deterrence defects. 

11 
Maintain average outgoing quality Assist manufacturing personnel in BEP 

level and reduce spoilage using process data analysis to imlosses. prove operations. 

Improve the consistency of BEP 

 incoming materials.

Reduce assignable causes BEP 

 of variability in currency 

 manufacturing. 

Maintain ISO certification and Maintain OQ programs re- BEP 

Make the transition to year lated to ISO requirements. 

2000 version. 

Aid in determining and im- BEP 

 plementing necessary changes 

 to BEP Quality program.

Complete and document a BEP 

 Quality Systems Plan for 

 NexGen currency production. 

Provide web-based access BEP 

 to the Corrective and Pre- 

 ventive Action Program docu- 

 mentation and incorporate 

 related WCF, Management 

 Control, and Technical Support 

 programs to streamline associated 

 BEP operations. 

12 
Strategic Goal III: Counterfeit Deterrence 

Produce state-of-the-art currency that deters counterfeiting, contributes to public 

confidence, facilitates daily commerce, and extends the useful life of notes in circulation. 

Starting Point – Working with the Federal Reserve Board and the U.S. Secret Service, 

the Bureau’s technology development and investment strategy has focused on continuous 

currency design enhancements to improve counterfeit deterrence and the security of the 

Nation’s currency. A significant milestone of this activity is the 2003 planned 

introduction of the next generation $20. The Bureau is working extensively with the 

public sector and public mass transit agencies to ensure a smooth introduction of the new 

notes. With its notable color design, the redesigned notes incorporate a number of new 

features to thwart technological advances available to counterfeiters while maintaining 

the large numerals to aid the visually impaired. The Bureau is currently engaged in the 

design development of the next generation $50 and $100 currency notes that will be 

introduced in the coming years. 

Strategic Objectives 

1. Identify and evaluate improved features consistent with the needs of the Federal 

Reserve Board and Bureau capabilities. 

2. Design and develop state-of-the-art counterfeit deterrent notes that meet 

stakeholders’ requirements for currency that function reliably in the cash system. 

Means and Strategies 

In carrying out its highest priority, BEP will continue its activities intended to meet the 

needs of the public for counterfeit deterrent U.S. currency. 

The Bureau will: 

• Work with customers and stakeholders to identify and upgrade currency designs with 

state-of-the-art counterfeit deterrence features. 

• Emphasize research and development in counterfeit deterrence. 

• Promote public-private partnerships with the reprographic industry to inhibit the 

copying of U.S. currency. 

• Strengthen and support our enforcement liaisons, partnerships, and public education 

efforts to promote global suppression of counterfeiting. 

13 
Counterfeit Deterrence Strategic Objectives and the Annual Performance Plan 

One or more key performance indicators relating to each strategic objective will track 

progress toward the strategic goal. These performance indicators will be fully developed 

in the Bureau’s Annual Performance Plan. The relationship between the strategic 

objectives and performance indicators is illustrated below.

 Strategic Objective Performance Indicator/ Source of Data 

Measure 

Identify improved features Offer ACD Steering Committee BEP/FRB 

consistent with recommen- viable options for review and 

dations made by the Federal ultimate decision by the 

Reserve Board. Secretary. 

Design and develop state- Approved design features BEP 

of-the-art counterfeit implemented on schedule. 

deterrent notes that function 

reliably in the cash system. 

14 
Strategic Goal IV: Security and Accountability 

Ensure an environment of comprehensive security and accountability for the Bureau’s 

personnel, facilities, and products. 

Starting Point – The Office of Management Control is responsible for promoting 

customer satisfaction by safeguarding Bureau property, funds, and other assets against 

waste, fraud, loss, unauthorized use, or misappropriation, through the development, 

implementation, and maintenance of effective management and product accountability 

control systems. Accountability policy and procedures have been developed and 

implemented for Bureau areas to minimize risks and vulnerabilities. 

Presidential Decision Directive 67, Enduring Constitutional and Continuity of 

Government Operations (COOP) stresses the importance of having in place a 

comprehensive and effective program to ensure the survival of our constitutional form of

government and continuity of essential Federal functions under all circumstances. In 

response to this directive, BEP formed a task force of representatives to ensure the 

continuity of essential functions in any national security emergency affecting BEP by 

providing for: succession to office and emergency delegation of authority in accordance 

with applicable law; safekeeping of essential resources, facilities, and records; and 

establishment of emergency operating capabilities. 

Strategic Objectives 

1. Maintain an accurate and cost effective system of accountability for Bureau 

products which will ensure that products are safeguarded and accounted for at 

each stage of production and that customers receive the quantities of product 

ordered. 

2. Ensure physical security of BEP property, employees and products. 

3. Maintain an effective COOP program to ensure continuity of essential Federal 

functions. 

Means and Strategies 

As the printer of all United States currency, the Bureau has a responsibility to the 

American public with respect to the custody and safeguarding of its assets and high value 

items. In carrying out this responsibility, the Bureau will enhance its comprehensive 

security and product accountability program by identifying risks and vulnerabilities and 

implementing improved systems and procedures. To accomplish these objectives, the 

Bureau will: 

15 
• Maintain the effectiveness of the product accountability system by evaluating the 

impact of new processes and production operations and enhancing the technical 

capability of the system to stay abreast of changing environments. 

• Ensure that managers and supervisors continuously monitor product 

accountability functions under their control. 

• Ensure the physical security infrastructure of the Bureau results in safeguarding 

the integrity of BEP products from receipt of materials to delivery to customers. 

• Ensure an efficient and effective environment for the security and accountability 

of US currency destruction activities performed at Federal Reserve Banks. 

• Establish and maintain an effective COOP program to ensure continuity of

Federal functions.

Security and Accountability Strategic Objectives and the Annual Performance Plan 

One or more key performance indicators relating to each strategic objective will track 

progress toward the strategic goal. These performance indicators will be fully developed 

in the Bureau’s Annual Performance Plan. The relationship between the strategic 

objectives and performance indicators is illustrated below. 

 Strategic Objective Performance Indicator/ Source of Data 

 Measure

Maintain an accurate and Monitor and provide analysis of BEP 

cost effective system of accountability system and results 

accountability for Bureau to identify gaps and vulnerabilities. 

products which will ensure 

that products are safe- Enhance system capabilities, scope BEP 

guarded and accounted for and functionality by evaluating 

at each stage of production trends in technology. 

and that customers receive BEP 

the quantities of product Periodic reviews of accountability 

continuously monitor and BEP access control and alarm 

ordered. monitoring systems. 

 

Ensure physical security Meet goal for shipment discrepancy rate. FRB 

of BEP property, 

employees and products. Inventory reconciliation reports. BEP 

 Perform audits of unfit currency FRB 

destruction operations at each Federal 

16 
Reserve Bank and Branch every 2 years 

to ensure compliance with Treasury 

 regulations and requirements. 

Maintain an effective Succession planning and authority BEP 

COOP program to ensure delegation established; essential resources, 

continuity of Federal facilities, records safeguarded; emergency 

functions. operating procedures developed. 

 

17 
Strategic Goal V: Resource Management 

Manage Bureau resources to increase internal efficiency and effectiveness in support of 

the other strategic goals. 

Starting Point – The Bureau has proactively instituted programs and policies for 

financial management, human resources, and information technology which comply with 

laws and regulations and support Treasury initiatives. An organizational emphasis on 

data reliability and quality has resulted in unqualified opinions on Bureau financial 

statements for the past 18 years. While significantly accelerating financial reports over 

the past two years, the Bureau has had no material weaknesses, reportable conditions, or 

material instances of non-conformance. Recognizing the importance of information 

technology in increasing accountability, enhancing IT security, and standardizing 

products and services in support of the Bureau’s mission, the Bureau’s Enterprise 

Architecture provides the foundation for and future direction of mission-related IT. 

Human capital has also been a priority, as the Bureau continues to emphasize workplace 

safety, injury reduction, and employee retention. All of these elements are responsive to 

the President’s Management Agenda as we partner with the Department and external 

evaluators in achieving world-class performance. 

Strategic Objectives 

1. Strategically align Bureau policies, business plans, programs and resources to 

achieve meaningful business results and improve financial management. 

2. Achieve efficient and effective competition from all sources to achieve our 

mission in the most cost effective manner. 

3. Expand electronic government. 

4. Strengthen human resource recruitment, retention and performance to ensure a 

diverse, skilled workforce committed to excellence. 

Means and Strategies 

Accomplishment of strategic objectives will be determined by the following means 

and strategies: 

• Improve accountable and results-focused management practices. 

• Refine the review process to assess progress against targets and take corrective 

action. 

• Meet financial compliance standards and improve integration of budget and 

performance planning. 

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• Deliver complete, accurate and timely products and services that meet customer 

and stakeholder needs. 

• Support e-gov initiatives. 

• Implement enterprise solutions using a sound governance process. 

• Fully comply with the provisions of the Federal Information Security 

Management Act of 2002 and meet Departmental goals for IT system

Certification and Accreditation. 

• Recognize the contribution of the Bureau’s valuable workforce. 

• Provide incentives to encourage and reward innovation. 

• Develop and implement a plan of action to ensure that potential critical skill gaps 

are identified and addressed. 

• Provide employees with challenging work, honest feedback, and mission-related 

opportunities for growth. 

• Provide a safe and secure workplace.

Resource Management Strategic Objectives and the Annual Performance Plan

One or more key performance indicators relating to each strategic objective will track 

progress toward the strategic goal. These performance indicators will be fully developed 

in the Bureau’s Annual Performance Plan. The relationship between the strategic 

objectives and performance indicators is illustrated below. 

 Strategic Objective Performance Indicator/ Source of Data 

 Measure 

Align Bureau policies, Receive Unqualified Opinion on BEP/Independent 

business plans, programs, Annual Audit Report. Auditor 

and resources to achieve 

meaningful business Meet Departmental requirements BEP/Dept. of 

results and improve for closing monthly financial Treasury 

financial management. statements. 

Achieve efficient and Percent of contracts awarded BEP 

effective competition from competitively. 

all sources to achieve our 

mission in the most cost 

effective manner. 

19 
Expand electronic Maintain Green rating on overall Treasury e-Governgovernment. e-gov scorecard and on ment Scorecard 

 individual components. 

 

Use and comply with BEP’s BEP 

 governance process for 100% 

 of IT projects. 

 

100% of general support Program reviews 

 systems and major applications 

 certified and accredited under 

 Federal Information Security 

Management Act. 

Strengthen human Percentage of employees with BEP 

resource recruitment, completed revisions of 

retention, and Individual Development Plans. 

performance to ensure 

a diverse, skilled Number of positions filled by BEP 

workforce committed recruitment programs aimed at 

to excellence. meeting critical needs. 

Employee turnover rate. BEP 

 Lost-time accident case rate. BEP 

20 
Linking Treasury Goals and Objectives with Bureau Goals 

Treasury Goal Treasury Objective Bureau Goals 

Preserve the integrity of

the U.S. Financial 

System

Increase the reliability 

of the U.S. Financial 

System

Customer Satisfaction – Satisfy

the Federal Reserve and the public 

by providing responsive service and 

quality products 

Quality Manufacturing – 

Manufacture state-of-the-art 

currency of consistently high 

quality while improving 

productivity and cost performance. 

Counterfeit Deterrence – Produce 

state-of-the-art currency that deters 

counterfeiting, contributes to public 

confidence, facilitates daily 

commerce and extends the useful 

life of notes in circulation. 

Security and Accountability – 

Ensure an environment of 

comprehensive security and 

accountability for the Bureau’s 

personnel, facilities and products. 

21 
Linking Treasury Goals and Objectives with Bureau Goals 

Treasury Goal Treasury Objectives Bureau Goal 

Manage Treasury 

resources effectively, 

to accomplish the 

mission and provide 

quality customer 

service 

Strategically align Treasury 

policies, business plans, programs 

and resources to achieve 

meaningful business results and 

improve financial management. 

Strengthen human resource 

recruitment, retention and 

performance to ensure a diverse, 

skilled workforce committed to 

excellence. 

Achieve efficient and effective 

competition from all sources to 

achieve our mission in the most 

cost effective manner. 

Improve financial performance. 

Expand electronic government. 

Integrate budget decisions with 

performance assessment to ensure 

Treasury is cost effectively 

delivering results for the American 

people. 

Resource Management – 

Manage Bureau resources 

to increase internal

efficiency and 

effectiveness in support of 

the other strategic goals. 

22 
Section 4 

MANAGEMENT STRATEGIES 

The Bureau’s management strategies create an environment conducive to implementing 

and accomplishing strategic goals. They embody fundamental management functions 

that cross directorate responsibilities and relate to each strategic goal. The strategies 

relate to Human Resources, Research and Development, Information Technology, and 

Business Processes. 

Human Resource Strategy 

Management is committed to enhancing the skills of the Bureau’s highly-trained, 

specialized workforce to meet the needs of the 21st century. To maximize the Bureau

workforce’s capabilities as a flexible, diverse, and efficient resource, the BEP is 

committed to pursuing several approaches. 

The first is to maintain a continuous learning environment by enabling all BEP 

employees to build the job competencies, computer and technology capabilities, work 

management skills, and flexibility required to achieve the Bureau’s strategic goals. The 

BEP will ensure that institutional knowledge is maintained through effective recruitment 

and succession planning programs. 

The second is to maintain the cooperative relationship between management and the 19 

bargaining units. This cooperation will continue to effectively drive improvement at BEP 

(e.g., through the development of employee programs, joint safety and health committees, 

and employee recognition linked to program outcomes through a Bureau-wide goal 

sharing program). This relationship will also support development of consistent labor 

agreements and practices. 

The third is to realign Human Resources (HR) programs around the business needs of the 

Bureau. This will be accomplished through implementation of technological solutions to 

human resources issues, including an effective Human Resources Information System

(HRIS) structure and full utilization of HR Connect. These technological tools will 

enhance the efficient and cost-effective support services provided through the 

development of a “generalist” capability to provide a “full service” Human Resources 

program, and a pro-active customer service program. 

Research and Development Strategy 

The Bureau’s mission is to manufacture United States currency and other documents 

which meet the needs of customers, are secure, and are produced in a cost-effective 

manner. In order to accomplish this mission, it is necessary for the Bureau to look ahead 

at technological trends and issues and continue to upgrade its capability in applied 

research. The BEP strategy to accomplish this is to identify state-of-the-art developments 

in currency production worldwide and to incorporate that information in its technical 

23 
knowledge base. Although much of the secure document innovation comes from the 

private sector, there are some technical areas that do not provide business incentive for 

involvement by private companies. In those cases, the Bureau intends to identify and 

fund basic research which is necessary to further the sophistication of its products. 

In implementing this strategy, the Bureau pursues knowledge partnerships with the 

Pacific Rim and European countries, including the 27 countries in the Central Bank 

Counterfeit Deterrence Group on currency improvements. The Bureau also contracts for 

applied research with the U.S. Government’s national laboratories and with public and 

private institutions. These activities ensure that the Bureau is taking a long-term look at 

product and process improvements in order to respond to the evolving needs of its 

customers. 

Information Technology Strategy 

The Bureau of Engraving and Printing will continue to develop programs to support 

business processes through compliance with Federal law and regulation, including 

compliance with provisions of the E-Government Act of 2002, the Federal Information 

Security Reform Act, and the Government Paperwork Elimination Act. BEP will refine

its Enterprise Architecture, including necessary revisions to reflect the new Federal 

Enterprise Architecture Framework (from the current Treasury Enterprise Architecture

Framework). Security will continue as a high priority with BEP plans to Certify and 

Accredit 100% of its systems during FY 2003. Enhancements will be made to the Bureau 

Intranet site, with the addition of applications supporting repair and maintenance 

requests, project management and tracking, web based training, and compliance testing. 

To continue to enhance employee productivity and to provide better services, the Bureau 

is working to transform the Bureau Intranet site, “In$ite,” from a tool designed simply to 

bring critical information and services to employees into a true business tool. BEP is 

moving beyond the traditional support applications such as posting job vacancies, 

facilitating access to Employee Express, delivering wed based training, and providing 

access to internal publications. Our goal includes providing Bureau wide web based 

applications such as repair and maintenance requests for services, project management

and tracking, customer surveys, and compliance testing. Access to “In$ite” applications 

is provided from the desktop, through remote access, and through kiosks that are located 

at various sites both in the Washington and the Fort Worth facilities. 

Business Process Strategy 

The Bureau is financed by means of an industrial revolving fund established in 1950 in 

accordance with Public Law 81-656. Operations are conducted on a business-like basis, 

with revenue from product sales used to reimburse the fund for all direct and indirect 

operating costs, including administrative expenses. Additionally, in 1977, Public Law

95-81 authorized the Bureau to include in its product prices amounts to fund capital 

investment and to meet increasing working capital requirements. Consequently, the 

Bureau’s operating and capital budgets are directly funded through revenue generated by 

24 
the sale of products and services to agencies of the Federal Government, principally the 

Federal Reserve. 

The Bureau maintains a sophisticated, commercial-type cost accounting system to 

maintain costs and develop billing rates. Each year, projections are made by analyzing 

actual costs for labor, materials, and services, their historical trends, and expected 

changes in price and productivity factors. Actual costs are reviewed to ensure 

conformance to plan and adjustments are made when necessary. Since the Bureau’s only 

source of revenue is through the sale of products and services, meeting established 

spending plans and performance cost goals is essential. 

The Bureau has a responsibility to the American public and the government agencies it 

serves to make the best use of resources in order to maximize productivity and minimize 

costs. The Bureau has a robust system for maintaining control of operating results and 

pursues a capital investment strategy consistent with the Strategic Plan. The Bureau’s 

Capital Investment Review Committees ensure that investment plans and decisions meet 

Treasury objectives and OMB policies, meet rigorous cost/benefit criteria and applicable 

safety, security and environmental requirements. 

25 
APPENDICES 

26 
Appendix 1

STRATEGIC PLANNING PROCESS 

Purpose of Strategic Planning 

Purpose of this Plan 

The purpose of this Strategic Plan is to provide our customers with a clear understanding 

of Bureau’s current goals, objectives and services and an action plan for the continuation 

and improvement of services over a five-year period. The Strategic Plan was developed 

to ensure that the Bureau of Engraving and Printing securely and efficiently: 

• Satisfies customers by meeting their changing requirements now and in the future. 

• Responds to changes in technology which affect both customer requirements and 

our ability to produce new and improved products with increased efficiency. 

• Meets the expectations of the American people for more effective and 

accountable government. 

Responding to Change through GPRA

The Government Performance and Results Act (GPRA) of 1993 was enacted by Congress 

in order to promote a new focus on improving program performance and to provide 

greater accountability for results within the federal government. It was designed to hold 

agencies accountable for program performance by requiring that they think strategically 

and set, measure and report on goals annually. 

For the first time federal agencies were mandated to become specifically results-oriented. 

Under the law, they are required to develop long-term Strategic Plans defining general 

goals and objectives for their programs, to develop Annual Performance Plans specifying 

measurable performance goals for all of the program activities in their budgets, and to 

publish an Annual Performance Report showing actual results compared to each annual 

performance goal. 

Strategic Planning Efforts 

In 1989, before GPRA required a plan, the Bureau embarked on its first round of strategic 

planning by developing a participative process committee to develop organizational 

goals. This committee collaborated to identify the best strategies for meeting the 

increasing demand for currency by the year 2000. This effort led to the production of the 

FY 1991-1995 Strategic Plan. A second round in 1993, produced “BEP 2000,” a plan to 

meet expanded capacity requirements for the currency program through equipment 

acquisition, reconfiguration or work units, and team-based management. In 1996, the 

Bureau of Engraving and Printing participated in the Treasury pilot GPRA program. The 

feedback received from the two reviewing congressional committees on the pilot plan

heavily informed revisions and was significant in helping to shape the Bureau’s strategic 

27 
direction. As a result, an updated FY 1997-2000 Strategic Plan was developed, 

addressing the requirements of the GPRA. As mandated by GPRA, the Bureau 

continuously updates the Strategic Plan in three-year intervals. The Strategic Plan 

covering FY 2000-2005 centered on sharpening our focus on core business and support 

processes. The current plan covering FY 2003-2008 focuses on providing excellence in 

manufacturing and technological innovation. 

28 
Appendix 2

MEASURING PERFORMANCE 

The Bureau is an organization that relies on measurement of its performance. As a 

manufacturing enterprise, the Bureau must provide continuing feedback on cost, 

operational performance, effectiveness, and efficiency. These are elements that are 

demanded by customers. Performance measurement is therefore part of doing business 

and involves the entire organization. 

The Bureau is concerned with the performance of all levels of the organization. 

Therefore, measures exist at three levels: the overall organization, individual 

components, and individual employees. At the organizational level, the measures link 

directly to the strategic goals. These measures provide feedback on the Bureau’s 

accomplishment of its mission. The second level of measure is related to the activities of 

individual organizational components. Within the overall objectives of the Bureau’s 

Strategic Goals, each office develops annual performance plans for its own activities, 

with performance goals and measures. Results are reported quarterly to the Office of 

Strategic Planning and Analysis and distributed to all offices within the Bureau. Finally, 

a strategic planning performance element is incorporated in Bureau executives’ 

individual performance plans. This ensures that BEP employees will be accountable for 

supporting the strategic planning process. 

Program Evaluations 

BEP conducts evaluations to provide valid and reliable information for measuring and 

improving performance. They are a collection of data composed of customer surveys, 

external reviews, and internal evaluations. 

Security and Accountability 

The following reviews and analyses played a key role in developing our security and 

accountability performance goals. These analyses were used to assess current levels of 

performance and to identify areas where performance could be enhanced. 

1.) Sheet Accountability Load Analysis

2.) Compliance Reviews 

3.) Presidential Decision Directive 67

The Sheet Accountability Analysis evaluated the accountability over currency production 

loads at each step in the manufacturing processes. This analysis incorporates the results 

of periodic physical inventories of security items to determine trends and areas of focus. 

Additionally, discrepancies are identified from daily production reporting, analyzed to 

determine causes, and corrective actions initiated to ensure that the accountability system

accurately reflects the physical status of production. The results of these reviews and 

analysis were used to develop the first strategic objective, “Maintain an accurate and 

29 
cost effective system of accountability for Bureau products which will ensure that 

products are safeguarded and accounted for at each stage of production and that 

customers receive the quantities of product ordered.”

Compliance reviews conducted in the operational and off-line security areas and regular 

trend analyses of key data and transactions in the Bureau of Engraving and Printing’s 

Management Information System (BEPMIS) were used to gauge employee compliance 

with accountability and security procedures. The results of these reviews were used to 

develop the second strategic objective, “Ensure physical security of BEP property, 

employees and products.” 

Presidential Decision Directive 67, Enduring Constitutional and Continuity of 

Government Operations (COOP) stresses the importance of having in place a 

comprehensive and effective program to ensure the survival of our constitutional form of

government and continuity of essential Federal functions under all circumstances. This 

directive resulted in the establishment of a BEP task force to ensure the continuity of 

essential functions in any national security emergency affecting BEP and is the basis for 

the third strategic objective, “Maintain an effective COOP program to ensure continuity 

of essential Federal functions.” 

Management Challenges and High-Risk Areas 

The Bureau began Fiscal Year 2002 with three open audit recommendations issued by the 

Office of the Inspector General (OIG). During the year, 21 additional recommendations 

from seven OIG audit reports were added. The recommendations were the result of 

audits requested by the Bureau contracting officers and planned audits by the OIG. 

Of the 21 recommendations added during 2002, four pertained to contract issues and 

involved the planned acquisition of services, material or equipment. The remaining 17 

new recommendations involved program issues such as information services and property 

control. Nineteen recommendations were implemented or addressed in FY 2002, 

resulting in monetary benefits in excess of $5 million. The remaining five 

recommendations will be addressed by BEP as appropriate. 

ISO Quality Standards 

In April 2001 the Bureau was registered as an International Organization for 

Standardization (ISO) compliant firm for the currency and intaglio ink production 

operations under the 1994 version of the standard. In May 2003 work was completed for 

the transition to compliance with the 2000 version of the standard. In addition, ancillary 

processes such as intaglio, offset, and surface piece plate manufacturing and specialty 

roller manufacturing were added to the scope of the registration, as was offset printing for 

the new (NexGen) currency design. The primary improvements to the 2000 standard 

over the 1994 standard are quality planning, customer focus, and continuous 

improvement. 

30 
In order for the Bureau to maintain certification, the registrar conducts continuous 

assessments on a semi-annual basis, reviewing the entire system over a period of two 

years. During these continuous assessments, the auditor may find instances of either noncompliance with the standard or of the organization's Quality Management Standards 

(QMS) procedures. Depending on the relative seriousness of the non-compliance found, 

the auditor may require the BEP to address correction of the non-compliance through our 

Corrective Action process, or if the non-compliance indicates a major breakdown in the 

system, recommend suspension of the certification until the systemic non-conformance is 

corrected. The Bureau's Office of Management Control has trained quality system

auditors on staff in both plants that perform internal audits on a schedule that covers the 

entire organization at both facilities over a period of one year. 

Vision Committees 

In December 2002 the Director established a number of Vision Committees that are 

aligned with the Bureau’s core businesses, objectives, and key strategies as outlined in 

the Strategic Plan. The Committees address a wide range of business concerns including 

process improvement, workforce, and external relations. The Committees report to the 

Director. 

President’s Management Agenda 

As part of its efforts to improve performance at all levels, the Bureau is implementing the 

President’s Management Agenda, established by the President in 2002 to make 

government agencies citizen-focused, results-oriented, and market-based. These 

government initiatives are: 

• Strategic Management of Human Capital 

• Competitive Sourcing 

• Improved Financial Performance 

• Expanded Electronic Government 

• Budget and Performance Integration 

Most of these initiatives are included in the Bureau’s Resource Management Strategic 

Goal, “Manage Bureau resources to increase internal efficiency and effectiveness in 

support of the other strategic goals.” The strategic objectives include financial 

accounting, human resource management, and enterprise architecture development. In 

each of these areas, strategies and performance measures have been developed that would 

also allow the Bureau to meet the requirements of the President’s Management Agenda. 

31 
Linkage to Annual Performance Plan and Budget 

The strategic planning process is closely allied with the Bureau’s budgetary process and 

is the starting point for the generation of annual performance plans. The performance 

plans provide short-term goals for functional areas (offices or resource areas) which 

directly support the strategic goals. The performance plans track progress on the goals in 

the annual performance plans. 

The strategic plan provides the overall framework for budget formulation at the Bureau. 

Performance goals, which are designed to ensure that the organization meets customer’s 

requirements, are the result of coordination between the Office of Strategic Planning and 

Analysis and the Office of Financial Management, as well as the components responsible 

for their achievement. Major capital and operating budget priorities are directly linked to 

the principle initiatives of the strategic plan. 

Budget estimates are built on historical cost trends within the context of the budget year’s 

customer orders. These estimates are adjusted to reflect the expected cost impact of the 

achievement of the performance goals supporting the strategic plan. For example, 

productivity goals provide the basis for projections of labor requirements from which 

accurate budget adjustments to historical labor cost trends can be made. Similarly, raw

material requirements are based on historical trends, cost escalation factors, and projected 

program output levels. The budget estimate for raw materials is then adjusted based on 

“spoilage” goals for the program year. Since BEP must recover all of its costs, the 

performance goals must be achieved to ensure that costs stay within budget and are fully 

recovered through the billing rate for products delivered. 

The foundation for the Bureau’s capital investment plan is the strategic plan. The capital 

investment plan reflects the approved requests from resource managers based on BEP’s 

long-term strategy and projected order levels. Capital requests must be accompanied by 

detailed business case analyses, which include a discussion of the linkage of the capital 

investment plan to strategic goals. This ensures a coordinated approach to capital 

investment planning and ensures that investments support strategic priorities. 

Linkage to Other Plans 

Financial Plans 

The Bureau’s ability to undertake cost-effective, long-term, customer-driven strategies 

requires investments in financial management systems, equipment, and human resources. 

This, in turn, ensures our ability to efficiently meet customer quality and volume 

requirements. To that end, the Strategic Plan drives the development of the Bureau’s 

annual budget, the Five-Year Financial Management System Plan, and the capital 

investment program. 

32 
IT Strategic Plan 

The Bureau sets goals and selects overall strategies to meet business objectives and to 

comply with the President’s Management Agenda and the e-Government Act as part of 

its IT strategic planning process. This plan ensures that the Bureau supports its core 

mission and achieves green on the Government Scorecard. 

Business Continuity Plan

The Bureau has developed a Continuity of Operations Plan (COOP), which describes the 

mechanisms and structures by which BEP personnel are able to make decisions, mobilize 

resources, and conduct activities to address the consequences of a disruption that impedes 

the Bureau from performing critical functions. The COOP provides the framework for 

continuing operations or recovering operations in the event of a disruption and defines 

the roles and responsibilities of key organizations and personnel. 

Environmental Management Plans

The Bureau is in the process of seeking ISO 14000 certification for its Environmental 

Management Systems, as well as complying with OSHA’s Voluntary Protection Program

(VPP) for excellence in health and safety. VPP would exempt the Bureau from planned 

OSHA inspections, and ISP 14000 certification should give the Bureau a competitive 

edge in the marketplace. Achieving certification in these two areas would mean that all 

environment, health, and safety (EHS) programs are of the highest quality, the Bureau is 

engaged in a continuous improvement process, and EHS considerations are integrated 

into all business decisions, as well as daily operations. 

Office of Securities Technology Work Plan 

The Advanced Counterfeit Deterrence (ACD) Steering Committee directs the Bureau’s 

efforts in the area of counterfeit deterrence through the Office of Securities Technology 

(OST). OST identifies and manages security feature research, testing, design 

implementation, and outreach to the technical groups of other Federal agencies, 

academia, and industry.

33 
Appendix 3

EXTERNAL FACTORS AFFECTING THE BEP STRATEGIC PLAN 

This section discusses the most salient and significant factors external to the Bureau of

Engraving and Printing which affect its programs. As an organization with an active 

planning program, the Bureau tracks trends in the economy and the political realm and 

coordinates with its major customers to ensure that future equipment, material and 

personnel meet its requirements. As part of the Department of the Treasury, BEP is 

subject to many of the same external factors that affect all Executive Branch 

organizations. Even though BEP does not receive appropriations, it still is subject to 

Congressional oversight through apportionment and other types of hearings, GAO and 

OMB rules, regulations, and program reviews. However, as a manufacturing 

organization that recoups its operating expenses through the sale of its security products, 

the Bureau is also affected by technological trends in the security printing industry and 

economic factors that influence the Department of the Treasury and the Bureau’s major 

customer, the Federal Reserve System. 

The Bureau is the largest industrial plant in the central core in Washington, D.C. BEP 

also operates a currency manufacturing facility in Fort Worth, Texas, which produces a 

little over half the nation’s currency. Both cities are in EPA non-attainment areas for 

ozone and nitrogen pollutants. Introduction of new presses or processes that are 

necessary to meet customers’ needs are subject to rigorous regulatory processes, and 

must incorporate the best available control technologies. Although the Bureau has 

satisfied regulators to date regarding the installation of new equipment and processes and 

has greatly upgraded environmental controls of existing equipment, these are areas that 

must be constantly monitored. The Bureau monitors existing and new environmental 

laws and regulations, both on the local and the national level and works closely with local 

regulatory bodies in the District of Columbia and Fort Worth/Dallas to ensure that 

construction and operating permits are up to date. Planning for environmental controls 

for equipment and building systems is part of the Bureau’s strategic and short-term

capital planning process and capital acquisition. 

Rapid developments in reprographic technologies and the increased access of the public 

to sophisticated design systems and widely available, highly capable computer-driven 

printing present counterfeiting challenges which may be as great or greater than threats 

from the traditional type of job shop counterfeit. Innovation is necessary on the Bureau’s 

part in work on counterfeiting issues with other Federal Agencies, in order to identify 

emerging technological threats and to develop research strategies to meet these 

anticipated threats. The analyses, which are necessary to identify the varieties of

counterfeiting threats and to accurately assess the success of anti-counterfeiting devices 

employed in currency, can be accomplished only through “cross cutting” interagency 

cooperation among the BEP, U.S. Secret Service, and the Federal Reserve System. The 

translation of conceptual counterfeit deterrents into manufacturing capabilities is often 

difficult and requires the Bureau to accurately assess internal factors such as equipment 

capability, materials suitability, and personnel training. In some cases, the Bureau is 

34 
“pushing the technological envelope” in designing, or acquiring, and integrating these 

complex technologies. BEP works with premier public and private institutions, including 

universities and Government laboratories. 

Currency is the Bureau’s major business and will account for 97% of its annual revenue 

by 2005 when the Bureau will no longer be printing postage stamps. The volume of the 

annual currency order and the mix of currency denominations are influenced by a number 

of factors, some of which are within the control of the Federal Reserve System and some

of which are not. However, many external factors influencing the volume of the annual 

order, whether they are controllable or not, can be predicted. This “ability to predict” is a 

result of the existence of a large number of tools and techniques for forecasting economic 

trends. Staff at the Federal Reserve Bank cash office and at the Federal Reserve Board 

collaborate to develop estimates for the demand for currency. They consider, for 

example the public’s demand for currency which includes estimated changes in currency 

usage and destruction rates of unfit currency. Environmental conditions affect physical 

conditions of bank notes and how quickly they are soiled, worn, or torn. Other factors 

which enter into the calculation of cash requirements are recurring cycles in the economy, 

both long-term and seasonal (such as Holiday cycles), issue dates of new currency 

designs and signature changes. Based on all of these factors, Federal Reserve staff 

evaluates trends, reconciles variations, considers the amount of currency held in vaults at 

BEP and at Federal Reserve Banks, and calculates currency demand estimates with Bank 

forecasts. A consensus print order is then approved by the Board. 

U.S. currency is the world’s currency. Roughly 60% of U.S. currency is circulating 

overseas, of which 75% is $100 notes. The dollar value is approximately $650 billion. 

Over the last ten years, there has been an increase in currency being shipped overseas, 

with Eastern Europe and Latin America being the largest recipients. However, there are 

counter trends recently. Overseas demand has decreased slightly since the introduction

of the Euro. This trend could continue if the Euro is accepted as a viable alternative for 

U. S. currency in world markets. Additional external effects on the requirements for 

currency include cash substitution mechanisms, such as smart cards or other stored value 

cards, where the amount of a transaction would be deducted from the amount “stored” on 

the card; and e-cash, where money is transferred electronically outside the established 

network of banks, checks, and paper currency. These have the potential to replace a 

portion of currency note demand, although there has been no great effect to date. Finally, 

if a $1.00 coin were introduced to replace the dollar note, this would have repercussions 

on manufacturing at the Bureau. 

One factor that could increase the amount of currency needed worldwide is dollarization, 

the adoption of the dollar either as the official unit of currency of a foreign country or the 

use of U. S. currency in tandem with domestic currency. In addition, counterfeiting 

threats increase the need to continue to redesign currency and ensure that “old” currency 

is replaced in the national and international markets as quickly as possible. 

Other external factors that may influence the Bureau do not directly affect their core 

businesses include changes in personnel ceilings and pay/benefit programs that are made 

35 
by Congress or the Executive Branch. These have morale and personnel retention 

implications, particularly for an organization that relies heavily on a highly trained, 

specialized, and unique workforce. 

36 
Appendix 4

CROSS-CUTTING ISSUES 

Cross-Cutting Counterfeit Deterrence Program

The Bureau of Engraving and Printing works in conjunction with the United States Secret 

Service (USSS), Federal Reserve Board (FRB), and the Treasury Department Advanced 

Counterfeit Deterrence (ACD) Program to design and produce banknotes, which address 

advances in the reprographic industry. Through the Advanced Counterfeit Deterrence 

Steering Committee, the BEP works to develop and incorporate currency features that 

will provide safeguards against emerging technologies in order to prevent the input, 

manipulation, and/or output of illegal or unauthorized banknote images. In conjunction

with the FRB, USSS, and the Treasury Department ACD, BEP works to enhance public 

awareness of security features as new currency is introduced. 

Cross-Cutting Management Initiative 

The Bureau’s security products, particularly currency, represent the integrity of the 

Federal Government, and therefore directly involve other Federal Agencies that are also 

concerned with security and integrity. BEP research into counterfeit deterrent features

directly impacts efforts of the Federal Reserve Board and the U.S. Secret Service to 

accomplish their missions. The Federal Reserve for example, was founded “to provide 

the nation with a safer, more flexible, and more stable monetary and financial system.” 

Since 1865, one of the main functions of the USSS has been to “suppress the 

counterfeiting of U.S. currency. 

Counterfeit deterrence activities represent a major effort by BEP in research and 

development and also require the expenditure of significant capital and human resources 

in manufacturing. The strategic plan proposes to directly address the effectiveness of 

these measures in meeting the needs of external parties. 

37 
Appendix 5

CONSULTATION WITH STAKEHOLDERS

The Bureau consulted with a variety of stakeholders concerning the Strategic Plan in 

order to gain input into the plan and comments on the draft document. These 

stakeholders include the general public, the Congress, Bureau customers, and its 

employees. 

Public – The Bureau effectively communicates with and seeks input from stakeholders 

through the BEP web site which is designed to be an easy-to-use resource for information 

on security documents and is currently assessable in two languages, English and Spanish. 

The site includes the Facts & Trivia section, where over 40 informative public documents 

are located, information on our public tour, one of the most popular tours in Washington, 

DC, information on stamps and currency, a collector’s forum, and a section which allows 

the user to conveniently send comments or requests to BEP. The web site also provides a 

link to the “New Color of Money” web site, which provides information about the 

Bureau’s latest redesigns to United States currency, in 19 different languages. In 

addition, the web site has direct links to the Department of the Treasury, the Federal 

Reserve, the United States Postal Service, U.S. Secret Service, U.S. Mint, and Internal 

Revenue Service. 

Congress – The Bureau provides the opportunity for the appropriate Congressional 

committees and their staffs to consult concerning the content of the Strategic Plan before 

finalizing the document. 

Customers – The Bureau has a well-developed process of obtaining input on both policy 

and operational matters from our major customers. Bureau officials hold regular 

meetings with officials from the Federal Reserve Board (FRB). These meetings discuss 

Bureau policy, strategies, and performance goals. Furthermore, communication with 

customers such as the FRB and currency processing equipment manufacturers provides 

continuous feedback on the quality of the Bureau’s product and how well it is meeting its 

production goals. 

Since October 2000 the Bureau has been working with currency processing vending 

machine manufacturers to provide information about the Series 2004 redesigned currency 

and to facilitate testing of the new design currency with their equipment. Outreach to this 

group has included contact by phone, correspondence electronically and by letter, and 

face-to- face meetings at the Bureau. Feedback obtained by this group has resulted in 

adjusting and adopting procedures to improve the process of introducing new currency. 

As part of the Series 2004 redesigned currency education campaign, regular meetings 

involving cross-functional offices at the Bureau, as well as the Federal Reserve Board, 

the Federal Reserve System Cash Office, and the U.S. Secret Service have been 

conducted to review and discuss all components of the campaign. Trust and acceptance 

of the dollar in the United States and internationally are vital to the security and stability 

38 
of the world’s monetary system. To that end, the public education and awareness 

campaign is a vital part of the introduction process of the redesigned currency to make 

the public aware of the changes being made to the notes and to ensure the new currency’s 

acceptance around the world. It is crucial that not only Americans, but currency users 

worldwide, are aware of the changes so there is no confusion when the redesigned 

currency is issued, and so that people will be able to recognize it as genuine United States 

currency when they receive it. Additionally, the Office of External Relations regularly 

discusses issues with Treasury’s Office of Public Affairs and meets with the AntiCounterfeiting Deterrence Committee to discuss milestones and initiatives regarding

redesigned currency. 

The Bureau has also established communication with various stakeholder audiences 

including the vending, transit, retail, banking, and gaming industry to ensure their 

awareness of the plans to introduce the new currency, to encourage that they contact their 

machine manufacturers to update their equipment and to ask their support in outreach to 

their members, employees and customers about the new currency. These discussions 

have helped to define the public education campaign to be more effective in reaching 

these customers and providing them with information and materials that will be useful in 

reaching the campaign’s goal. 

Other methods of obtaining feedback from customers include customer surveys, 

conferences, individual contact, e-mail, fax, and telephone. All of these techniques are 

valuable devices for ensuring that the Bureau maintains customer-oriented goals. 

Employees – The Bureau has a variety of methods for ensuring employee input into the 

Strategic Plan and performance measures. Office Chiefs, and Associate Directors are 

involved in the development of the strategic planning document. Bureau management 

also seeks input in developing appropriate performance measures and data requirements. 

The unions play a particularly significant role in this process. With nineteen union locals, 

the union-management partnership continues to provide a forum to improve 

communication for all employees. Key to this partnership is the open communication 

between senior management and the unions. 

39 
40 

Appendix 6 

STEPS TO DISSEMINATE THE STRATEGIC PLAN 

The Bureau has several methods for disseminating information regarding its strategic 

goals and objectives. The strategic plan is published on the Intranet for employees, and 

information is also distributed in its internal newsletter. The continuous communication 

with outside stakeholders and customers is another method for providing information 

concerning the Bureau’s Strategic Plan. Finally, the Strategic Plan will be posted on the 

Bureau’s web site. 

COMMENTS 

We welcome your feedback: 

Comments or questions regarding this Strategic Plan should be referred to Allan 

Wibbenmeyer at (202) 874-2335 or Tom Watson at (202) 874-2604, Bureau of 

Engraving and Printing. 

E-mail: allan.wibbenmeyer@bep.treas.gov or tom.watson@bep.treas.gov.

Mail – Office of Financial Management, Strategic Planning Branch 

 BEP 

 Room 211A 

 14th & C Sts., S.W. 

 Washington, DC 20228