Bureau of Engraving and Printing

Program Summary by Budget Activity

Dollars in Thousands

FY 2019 FY 2020 FY 2021 FY 2020 to FY 2021

Budget Activity Actual Estimate Estimate % Change

Manufacturing $955,212 $819,701 $887,400 8.26%

Total Cost of Operations $955,212 $819,701 $887,400 8.26%

FTE 1,727 1,804 1,863 3.27%

Summary

The mission of the Bureau of Engraving and Printing (BEP) is to develop and produce United 

States currency notes trusted worldwide. BEP supports Treasury’s Strategic Goal 1 (Boost U.S. 

Economic Growth) and Strategic Goal 5 (Achieve Operational Excellence).

BEP’s FY 2021 budget funds the following projects:

Replacement Production Facility: In FY 2019, BEP received legislative authority to acquire 

land and fund construction of a more efficient production facility to replace BEP’s current aging 

Washington, D.C. facility. In addition, a provision of the 2019 Farm Bill authorizes the transfer 

of a US Department of Agriculture (USDA) land parcel in Beltsville, Maryland to the 

Department of the Treasury to be the site for BEP’s replacement production facility. BEP has 

been conducting suitability assessment of the site with the support from the U.S. Army Corps of 

Engineers. The formal transfer from USDA to Treasury is anticipated in early 2020. A 

replacement facility will save an estimated $579 million over 10 years, as compared to the cost 

of the renovation of the existing facility. In addition, BEP will be able to reduce its annual 

operating costs by at least $38 million. In FY 2020, the budget includes about $5 million for 

remaining site evaluation tasks and relocation of several onsite USDA facilities that must be 

removed prior to the initiation of onsite BEP construction activities. Also anticipated in FY 2021 

is the initiation of early site development construction activities estimated at $30 million to 

include site grading, roadway improvements and utility system relocation to support the BEP 

development.

Western Currency Facility Expansion: Producing the next family of updated notes requires 

that BEP purchase and install new production equipment to support the new designs. The 

expansion will provide the space and infrastructure necessary to successfully meet the production 

requirements of the next family of U.S. currency banknotes that focus on the integration of 

strong, new security features. Unforeseen weather-related delays caused the project to fall 4 to 6 

months behind schedule. The expansion work is expected to be completed in FY 2021 with 

contract close out occurring in FY 2022. The FY 2021 projected cost for the WCF is $5 million.

Banknote Design and Development: In FY 2021, BEP will continue working with the Federal 

Government’s Advanced Counterfeit Deterrent (ACD) Steering Committee to research and 

develop improved security features for the next family of updated notes. The ACD Committee is 

an inter-agency group established to monitor and explore existing and emerging technologies to 

deter the counterfeiting of U.S. currency. It includes representatives from BEP, the Department 

of the Treasury, the U.S. Secret Service, and the Federal Reserve Board (FRB). The updated 
notes will focus on innovative banknote security and anti-counterfeit technology that will 

enhance and ensure the security and integrity of U.S. currency. While many factors are taken into 

consideration when updating currency, the primary purpose for updating notes is to improve the 

security of U.S. banknotes and ensure they maintain their position as being trusted worldwide. 

Retooling: BEP is conducting a multi-year effort to retool its manufacturing processes with 

state-of-the-art intaglio printing presses, electronic inspection systems, and finishing equipment. 

To ensure that BEP will meet the annual currency order, the FRB and BEP developed and 

established short, medium, and long-term strategic equipment replacement plans for the U.S. 

Currency Program. Successful implementation of advanced technology improves productivity, 

reduces environmental impact, and enhances counterfeit deterrence of U.S. currency notes. 

Human Capital/Talent Management: BEP will continue its designated talent management 

initiatives, while filling personnel gaps in needed STEM and cybersecurity skill sets. Throughout 

FY 2021, BEP will continue to develop, execute, and communicate the results of Employee 

Engagement Plans and the annual Federal Employee Viewpoint Survey (FEVS) results. 

Budget Highlights

Dollars in Thousands

FTE Materials Operating 

& Capital Total

FY 2020 Original Estimate 1,863 $244,051 $642,836 $886,887 

Program Changes

Program Decreases: (59) ($50,000) ($53,236) ($103,236)

Currency Program decrease (7.0B to 5.2B) 0 ($50,000) $0 ($50,000)

Washington D.C. Replacement Facility 0 $0 ($44,950) ($44,950)

Hiring Lag (59) $0 ($8,286) ($8,286)

Program Increases: 0 0 $36,050 $36,050 

R&D (New Note Features) 0 $0 $19,000 $19,000 

Support Services Contract 0 $0 $3,500 $3,500 

Pay Raise (3.1% average pay raise) 0 $0 $7,700 $7,700 

WCF Expansion 0 $0 $5,850 $5,850 

Subtotal Program Changes (59) (50,000) ($17,186) ($67,186)

FY 2020 Revised Estimate 1,804 $194,051 $625,650 $819,701 

Changes to Base

Maintaining Current Levels (MCLs) 0 $0 $14,686 $14,686 

Pay Annualization (2020 3.1% average pay raise) 0 $0 $1,998 $1,998 

Pay Raise (1.0% average pay raise) 0 $0 $1,948 $1,948 

FERS Contribution Increase 0 $0 $3,383 $3,383 

Non-Pay 0 $0 $7,357 $7,357 

Efficiency Savings 0 $0 ($5,000) ($5,000)

Overtime Reduction 0 $0 ($5,000) ($5,000)

Subtotal Changes to Base 0 $0 $9,686 $9,686

FY 2021 Current Services 1,804 $194,051 $635,336 $829,387 

Program Changes

Program Decreases: 0 $0 ($51,400) ($51,400)

 Retooling 0 $0 ($33,000) ($33,000)

 New Equipment Initiatives 0 $0 ($15,000) ($15,000)

 WCF Expansion 0 $0 ($3,400) ($3,400)

Program Increases: 59 $53,237 $56,176 $109,413 

Washington D.C. Replacement Facility 0 $0 $24,890 $24,890 

Hot Foil Equipment (WCF) 0 $0 $24,000 $24,000 

Estimated Currency Program increase (6.8B) 0 $53,237 $0 $53,237 

Complete Hiring Plan 59 $0 $7,286 $7,286 

Subtotal Program Changes 59 $53,237 $4,776 $58,013 

FY 2021 Estimate 1,863 $247,288 $640,112 $887,400 
Budget Adjustments

Adjustments to Estimates

Program Decreases............................................................. -$103,236,000 / -59 FTE

Currency Note Program -$50,000,000 / -0 FTE

This decrease reflects the FY 2020 order of notes from the FRB. The order decreased from 7.0 

billion notes in FY 2019 to 5.2 billion notes in FY 2020.

Washington D.C. Replacement Facility -$44,950,000 /-0 FTE 

In FY 2019, BEP received legislative authority to acquire land and build a more efficient facility 

in the Washington, D.C. area. As a result of the new authority, BEP will not undertake the 

previously planned renovation to the existing facility in D.C.

Hiring Lag -$8,286,000/ -59 FTE

This adjustment is to reflect the impact of the hiring lag.

Program Increases............................................................... +$36,050,000 / +0 FTE

Research and Development +$19,000,000/ +0 FTE

To continue the research and development of the new security features for the new family of 

notes.

Support Service Contracts +$3,500,000/ +0 FTE

To mitigate the risks associated with the growing hiring backlog, the funding would be used to 

acquire support services to provide business continuity.

Pay Raise (3.1% in 2020) +$7,700,000/ +0 FTE

Funds are required for the 3.1% average pay raise in January 2020.

WCF Expansion +$5,850,000/ +0 FTE

The funding would be used for unforeseen construction issues.

FY 2021 Maintaining Current Levels (MCLs)............................ +$14,686,000 / +0 FTE

Pay Annualization (3.1%) +$1,998,000 / +0 FTE: 

Funds are required for annualization of the January 2020 3.1% average pay raise. 

Pay Raise (1.0% in 2021) +$1,948,000 / +0 FTE: 

Funds are required for the proposed 1.0% average pay raise in January 2021. 

FERS Contribution Increase +$3,383,000 / +0 FTE:

Funds are required for the Federal Employee Retirement System (FERS) contribution rates 

effective FY 2021.

Non-Pay +$7,357,000 / +0 FTE

Funds are required for non-labor expenses such as travel, contracts, rent, supplies, 

and equipment.
FY 2021 Efficiency Savings...................................................... -$5,000,000 / -0 FTE

Overtime Reduction -$5,000,000 / -0 FTE

The new production technologies would yield more efficiencies resulting in less overtime. 

Program Decreases............................................................... -$51,400,000 / -0 FTE

Retooling -$33,000,000 / -0 FTE

The FY 2020 estimate is $33 million higher than the FY 2021 anticipated requirements. 

New Equipment Initiatives -$15,000,000 / -0 FTE

Requested funding supports the acquisition of new technology/equipment to be used in the 

testing of new design features.

WCF Expansion -$3,400,000/ -0 FTE

The FY 2020 estimate is $3.4 million higher than the FY 2021 anticipated requirements. 

Program Increases............................................................ +$109,413,000 / +59 FTE

Washington D.C. Replacement Facility +$24,890,000 / +0 FTE 

Funds are requested to reflect the increase from FY 2020 to FY 2021 to support the preconstruction activities. 

New Security Feature Equipment (WCF) +$24,000,000 / +0 FTE

Currency Redesign efforts require investment in new application equipment which is to be 

installed in WCF in FY2021 and subsequently installed at the replacement DC Facility.

Currency Note Program +$53,237,000 / +0 FTE

Early indications suggest that the yearly currency order placed by the Federal Reserve Board will 

return to average order levels in FY 2021. 

Complete Hiring Plan +$7,286,000 / +59 FTE

BEP has been experiencing a hiring lag the last several years. BEP anticipates reducing the 

backlog of hiring actions in FY 2021 and plans are to execute and complete proposed hiring 

actions and on board FTEs.

Legislative Proposals 

As proposed previously, BEP requests the authority to print security documents such as birth, 

marriage, and death certificates for state governments. Many states are unable to find an 

American printing firm to produce the documents. These states are turning to foreign companies 

or lowering their security standards.
Performance Highlights 

Budget Activity Performance Measure FY 2017

Actual

FY 2018

Actual

FY 2019

Actual

FY 2020

Target

FY 2021

Target

Manufacturing Currency Notes Delivered Returned Due to 

Defects (Parts per Million) N/A 0.0031ppm 0.09ppm <1ppm <1ppm

Manufacturing Improved FEVS Satisfaction 68% 70% 68% 65% 65%

Manufacturing Lost Time Accident Rate per 100 Employees 1.6 0.9 1.05 1.8 1.8

Manufacturing Manufacturing Costs For Currency (Dollar 

Costs Per Thousand Notes Produced) $43.58 $47.41 $51.01 $56.00 $56.00

Manufacturing Yearly Currency Order (percent of order 

completed versus planned) N/A N/A 100% 100% 100%

Description of Performance

($887,400,000 from reimbursable sources)

The BEP has one budget activity: Manufacturing. This budget activity supports all of BEP’s 

strategic goals as well as supporting Treasury’s Strategic Goals Boosting U.S. Economic Growth 

and Achieving Operational Excellence. 

Description of Performance:

Currency Notes Returned Due to Defects (parts per million (ppm)) is an indicator of BEP’s 

ability to provide a quality product. The target for this performance metric is <1 ppm. BEP was 

able to exceed the established target in FY 2019 due to improved quality assurance processes 

with an actual result of 0.09 ppm notes returned due to a defect. BEP’s target for this 

performance metric will be held constant at <1 ppm for FY 2020 and FY 2021.

The Federal Employees Viewpoint Survey (FEVS) allows employees to share their opinion on 

what matters most to them. Based on the results of the survey, BEP can target areas for 

improvement or additional employee engagement. The measure uses the Department’s standard 

FEVS Employee Engagement Index with a target of 65 percent. In FY 2020 and 2021, BEP will 

continue to strive for improvements in overall employee satisfaction.

The Lost Time Accident Rate per 100 employees measures the BEP’s ability to reduce injuries 

and illnesses in the workplace. BEP’s FY 2019 Lost Time Accident rate was at 1.05 cases per 

100 employees, 42 percent lower than the target of 1.80 cases per 100 employees. This 

performance resulted from increased focus on following safe work practices, avoiding hazards, 

and being a Director’s priority. For FY 2021, BEP remains committed to maintaining and 

improving the safety of its employees. BEP will continue to perform analysis to determine the 

root causes of any injury and to identify best practices in safety. BEP’s target will be held at 1.80 

cases per 100 employees for FY 2020 and FY 2021.

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, and the mix of denominations ordered. 

Actual performance against standard costs depends on BEP’s ability to meet spoilage, efficiency,

and capacity utilization goals. In FY 2019, the cost of manufacturing was lower than anticipated 

due to operational efficiencies. The FY 2019 cost was $51.01 per 1,000 notes produced, 

compared to a target of $51.66. BEP’s target for this performance metric in FY 2020 and FY 
2021 is set at $56.00 per 1,000 notes produced. Per unit cost for currency is projected to increase 

because of significant reduction to the currency order for 2020 and higher labor rates and 

material price increases.

The Yearly Currency Order measures BEP’s success in delivering the total number of currency 

notes ordered by the Federal Reserve Board annually. In FY 2019, BEP met its target of 

delivering 100 percent of the currency notes ordered. In FY 2020 and FY 2021, BEP will 

continue to target delivering 100 percent of the FRB’s currency order.