Bureau of Engraving and Printing

Program Summary by Budget Activity

Dollars in Thousands

 FY 2015 FY 2016 FY 2017 FY 2016 TO FY 2017

Budget Activity Actual Estimated Estimated $ Change % Change

Manufacturing $636,489 $863,940 $846,335 ($17,605) -2.04%

Total Cost of Operations $636,489 $863,940 $846,335 ($17,605) -2.04%

FTE 1,800 1,924 1,924 0 0.00%

Summary

In support of Treasury’s strategic goal of 

“Enhance U.S. Competitiveness and Promote 

International Financial Stability and Balanced 

Global Growth”, the mission of the Bureau of 

Engraving and Printing (BEP) is to develop 

and produce United States currency notes, 

trusted worldwide. 

FY 2017 Priorities

Produce and deliver U.S. currency notes 

ordered by the Federal Reserve Board that 

consistently meet the customer’s high quality 

standards. Create innovative currency designs 

to provide effective counterfeit deterrence and 

meaningful access to currency note usage for 

all; achieve organizational excellence and 

customer satisfaction through balance 

investment in people, processes, facilities, and 

technology.

Banknote Design and Development – There 

are two main components of currency 

redesign: Technical and Aesthetic. The 

primary technical goals in the redesign of U.S. 

currency are to: Ensure that U.S. currency 

employs unique and technologically advanced 

features to deter counterfeiting; facilitate the 

public’s use and authentication; provide 

accessibility and usability and maintain public 

confidence. The aesthetic goals in the 

redesign of U.S. currency are to 

institutionalize our American history by 

depicting people, monuments, symbols, and 

concepts that reflect the past and reinforce a 

theme for that particular era of currency 

design.

Meaningful Access – Assist users of U.S. 

currency, including the blind and visually 

impaired, with a means to denominate 

currency. BEP is following two project paths 

to provide meaningful access, a Currency 

Reader (an electronic assistive device that can 

identify a note’s value and communicate it to 

the user) as well as a Raised Tactile Feature 

(RTF) that will be on future notes.

The Bureau of Engraving and Printing 

operates on the basis of authority conferred 

upon the Secretary of the Treasury by 31 

U.S.C. 321(a) (4) to engrave and print 

currency and other security documents. 

Operations are financed through a revolving 

fund established in 1950 in accordance with 

Public Law 81-656. The fund is reimbursed 

for direct and indirect costs of operations, 

including administrative expenses, through 

product sales. In 1977, Public Law 95-81 

authorized the Bureau to include an amount 

sufficient to fund capital investment and to 

meet working capital requirements in the 

prices charged for products, eliminating the 

need for appropriations from Congress. 

The Bureau produces the paper currency notes 

ordered by the Federal Reserve Board (FRB). 

During FY 2017, BEP expects to produce and 

deliver 8.0 billion notes to the FRB to meet 

currency demand. The FY 2017 order 

represents a slight decrease in the number of 
notes expected to be delivered in the FY 2016 

program.

Research and development of new 

technologies for use in currency note 

production is a priority at the Bureau as more 

sophisticated counterfeit deterrent features are 

needed to protect future generations of 

currency notes. In 2017, BEP will continue its 

efforts to research and develop security 

features working with the National Research 

Labs to expand our outreach to identify new 

technologies that may be used. In addition, via 

its website, www.bep.gov, BEP seeks 

information on technologies that would 

enhance the longevity and durability of 

currency notes in circulation and new 

technologies or materials that could be 

developed for future use in counterfeit 

deterrence. 

BEP supports a comprehensive anticounterfeiting program built around effective 

note design, public education, and aggressive 

law enforcement. The Bureau will continue its 

work in 2017 with the Advanced Counterfeit 

Deterrent (ACD) Steering Committee to 

research and develop future currency designs 

that will enhance and protect U.S. currency 

notes. The ACD Committee includes 

representatives from BEP, the Department of 

the Treasury, the U.S. Secret Service, and the 

FRB. It was with guidance from the ACD

Committee, that the $10 note was selected as 

the first denomination for redesign. While 

many factors are taken into consideration, the 

primary reason for redesigning currency is to 

address current and potential counterfeiting 

threats.

Work will continue in FY 2017 on the goal of 

enabling the Nation’s currency to better serve 

domestic and international users, including the 

blind and visually impaired. BEP will 

continue its efforts to research, develop, and 

test tactile features that will enhance future 

note designs. Testing and refinement of 

features will continue to determine which 

processes and features work best at the 

production volumes needed for U.S. currency. 

The FY 2017 Budget requests funding to 

continue the BEP Currency Reader 

distribution program in coordination with the 

Library of Congress’ National Library Service. 

Under this program, United States citizens and 

legal residents who are blind or visually 

impaired are provided a currency reader to aid 

in the denomination of US currency. 

In addition, funding is requested to continue 

the Currency Quality Assurance (CQA) 

Program. The Bureau, in collaboration with its 

stakeholders, developed a robust CQA 

Program that began in 2014 and will continue 

to mature in 2017. Every BEP work activity 

was aligned and will be resourced to support 

this integrated, collaborative, and rigorous 

quality assurance program that focuses on 

every step of the supply chain from raw 

material, through the manufacturing process 

steps to final packaging and delivery. CQA 

reaches into nearly every “corner” of the BEP 

organization and its effectiveness depends on a 

strong cadre of process and production 

engineers, quality assurance specialists and 

other specialists in related science and 

engineering disciplines. 

In 2017, the Bureau will continue to 

implement BEP Human Capital Plan 

initiatives; efforts will continue to fill gaps in 

needed STEM skill sets to support our CQA 

efforts in addition to adding resources in 

technology development and feature testing 

areas. 

2017 funding is requested to support BEP’s 

Phase II of a retooling equipment project 

which includes an equipment replacement 

plan, tactile feature testing equipment, labor 
relations/staffing strategy and alternatives for 

material handling.

BEP’s current Washington, DC facility has an 

aging and outdated infrastructure which drives 

up costs and adversely impacts quality. Work 

on a replacement production facility is going 

forward; in May 2015 a site selection 

evaluation contract was awarded. In 2016 

BEP will award a construction management 

administrative support contract and facility 

design programming contract. Efforts are also 

underway in 2016 to narrow down the possible 

site selections to the top 3 for further 

evaluation. The new production facility is 

projected to be completed in the 2022

timeframe, with the new facility fully 

operational by 2025; however this is subject to 

change as the project evolves. The Federal 

Reserve Board, which would pay for a 

replacement of the Washington, DC facility, 

supports this project. 

BEP FY 2017 Budget Highlights

Dollars in Thousands

Bureau of Engraving and Printing FTE Materials Operating & 

Capital Total

FY 2016 Estimated 1,924 $292,250 $571,690 $863,940

Changes to Base:

Maintaining Current Levels (MCLs): - - $9,395 $9,395

Pay-Raise - - $2,404 $2,404

Pay Annualization - - $799 $799

Non-Pay - - $6,192 $6,192

Efficiency Savings: - - ($2,000) ($2,000)

Reduction in Overtime - - ($2,000) ($2,000)

Subtotal Changes to Base - - $7,395 $7,395

Total FY 2017 Base 1,924 $292,250 $579,085 $871,335

Program Changes:

Program Decreases: - - ($25,000) ($25,000)

Currency Reader - - ($5,000) ($5,000)

DCF Production Facility Replacement - - ($10,000) ($10,000)

Reduction in Retooling - - ($10,000) ($10,000)

Total FY 2017 Estimated 1,924 $292,250 $554,085 $846,335

FY 2017 Budget Adjustments

Adjustment to Estimates

Maintaining Current Level (MCLs)

Pay-Raise +$2,404,000 / +0 FTE

Funds are required for the proposed January 

2017 pay-raise.

Pay Annualization +$799,000 / +0 FTE

Funds are required for and the annualization of 

the 2016 pay-raise.

Non-Pay +$6,192,000 / +0 FTE

Funds are required for inflation adjustments in 

non-labor expenses such as GSA rent 

adjustments postage, supplies, and equipment.

Efficiency Savings

Reduction in Overtime -$2,000,000 / +0 FTE

As a result of CQA driven improvements, BEP 

anticipates better production yields which will 

in turn reduce overtime costs.

Program Decreases

Currency Reader -$5,000,000 / +0 FTE

As currency readers are released to the public, 

fewer devices will be needed to fulfill 

customers’ orders.

DCF Production Facility Replacement 

-$10,000,000 / +0 FTE

The Project Management contract for BEP’s

new facility investment was funded in
FY 2016, therefore funding is not needed in 

FY 2017.

Reduction in Retooling -$10,000,000 / 

+0 FTE

BEP’s retooling needs for FY 2017 are not as 

large as FY 2016; therefore funding is not 

needed in FY 2017.

Explanation of Budget Activities

Manufacturing ($846,335,000 from 

revenue/offsetting collections)

The BEP has one budget activity: 

Manufacturing. This budget activity supports 

all of BEP’s strategic goals.

Legislative Proposals

BEP has no legislative proposals.

BEP Performance by Budget Activity

Budget Activity Performance Measure FY 2013 FY 2014 FY 2015 FY 2016 FY 2017

Actual Actual Actual Target Target

Manufacturing Best Places to Work in Federal 

Government Ranking

47 51 74 99 99

Manufacturing Lost Time Accident Rate per 100 

Employees

1.63 1.73 1.65 1.8 1.8

Manufacturing Manufacturing Costs For Currency 

(Dollar Costs Per Thousand Notes 

Produced)

50.45 44.22 42.35 50.0 50.0

Manufacturing Percent of Currency Notes 

Delivered Returned Due to 

Defects

.466 .00001 .0000003 .0001 .0001

Description of Performance

Manufacturing Costs for Currency (dollar 

cost per 1,000 notes produced) is an 

indicator of manufacturing efficiency and 

effectiveness of program management. The 

measure is based on contracted price factors, 

productivity improvements, as well as the 

mix of denominations ordered. Actual 

performance against standard cost depends 

on BEP’s ability to meet spoilage, 

efficiency, and capacity utilization goals. In 

2015 the cost of manufacturing was lower 

than anticipated; the actual result realized 

was $42.35 per 1,000 notes produced against 

a target of $54.00. BEP target for this 

performance metric in both 2016 and 2017 

is set at $50.00 per 1,000 notes produced.

Percent of currency notes returned due to 

defects is an indicator of the Bureau’s ability 

to provide a quality product. BEP’s 

FY 2015 target for this performance metric 

was .0001 percent, and the actual result 

realized for this measure was .0000003

percent. BEP’s target for this performance 

metric will be held constant at .0001 percent 

for both FY 2016 and 2017.
BEP’s Best Places to Work in Federal 

Government Ranking is a based on the 

results of the Partnership for Public Service 

data on three questions in the Federal 

Employee Viewpoint Survey. BEP’s 2015 

rank was 74 out of 320. BEP will continue 

to target achievement of an improvement in 

rank. 

Reduction in Regulated Waste (Pounds of 

waste per 1000 notes delivered of regulated 

air emissions, wastewater, and solid waste 

combined) is a quantitative indicator of the 

effectiveness of BEP environmental 

programs, which are assessed through the 

BEP ISO 14001 certified Environmental 

Management System (EMS). BEP’s 

FY 2015 performance of 27.3 pounds of 

regulated waste for this metric was against a 

target of 30 pounds per 1000 notes 

delivered.

Lost Time Accident Rate per 100 

Employees measures the Bureau’s ability to 

reduce injuries and illnesses in the 

workplace. BEP’s 2015 lost time case rate 

was favorable during the fiscal year at 1.65 

against a target of 1.8 cases per 100 

employees. The Bureau remains committed 

to improving the safety of its employees and 

has undertaken analysis to determine the 

root causes of injury and to identify best 

practices in safety. BEP’s target for this 

performance metric will be held constant at 

1.8 per 100 employees for FY 2016 and

FY 2017.