Department of the Treasury 

Bureau of Engraving and 

Printing 

Congressional Budget 

Justification and Annual 

Performance Plan and Report 

FY 2023 
BEP - 2 

Table of Contents

Section I – Budget Request........................................................................................................... 3

A – Mission Statement ................................................................................................................ 3

B – Summary of the Request ...................................................................................................... 3

1.1 – Resources Detail Table .................................................................................................. 5

1.2 – Budget Adjustments Table ................................................................................................. 6

C – Budget Increases and Decreases Description ....................................................................... 6

1.3 – Object Classification (Schedule O) .................................................................................... 8

D – Appropriations Language and Explanation of Changes ...................................................... 8

E – Legislative Proposals ............................................................................................................ 8

Section II – Annual Performance Plan and Report ................................................................... 9

A – Strategic Alignment ............................................................................................................. 9

B – Budget and Performance by Budget Activity .................................................................... 10

2.1 – Manufacturing Resources and Measures ......................................................................... 10

C – Changes in Performance Measures .................................................................................... 11

Section III – Additional Information ........................................................................................ 11

A – Summary of Capital Investments ....................................................................................... 11

 
BEP - 3 

Section I – Budget Request 

A – Mission Statement 

To develop and produce United States currency notes trusted worldwide. 

B – Summary of the Request 

The Bureau of Engraving and Printing (BEP) produces and delivers U.S. currency notes for the 

Federal Reserve System ordered by the Board of Governors of the Federal Reserve (FRB) and 

other security products for the Federal Government. BEP began printing currency in 1862 and 

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 BEP 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 annual discretionary appropriations. BEP provides technical assistance, 

advice, and some production services to other federal agencies in the development of security 

documents requiring counterfeit deterrent features due to their innate value or other 

characteristics. Other activities at BEP include engraving plates and dies; manufacturing inks 

used to print security products; purchasing materials, supplies, and equipment; and storing and 

delivering products in accordance with customer requirements. BEP supports Treasury’s 

Strategic Goal 2: Enhance National Security, Goal 3: Financial Systems Vulnerabilities, Goal 4: 

Combat Climate Change, and Goal 5: Modernize Treasury Operations. 

BEP’s FY 2023 President’s Budget request funds the following projects: 

1. Washington, DC Replacement 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. Additionally, a provision in the Agriculture 

Improvement Act of 2018 (P.L. 115-334) authorized the transfer of a U.S. 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. The property transfer Memorandum of 

Agreement between USDA and Treasury was finalized in early 2020. The formal transfer of 

administrative control from USDA to Treasury is expected to occur in 2022. The FY 2023 

current estimate includes $12M in base funding and $885M in increase funding for a total of 

$897M for the next phase of the replacement facility project which was originally planned for 

FY 2022. In 2021, BEP began early site development construction activities estimated at $33 

million to include the removal of hazardous building materials, demolition of twenty-two former 

agriculture research buildings and minor utility system relocations to support the BEP 

development. BEP’s final environmental impact statement was issued in FY 2021. 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 reduce its annual operating costs 

by at least $38 million through production, material handling, and other operational/support 

efficiencies. 

 
BEP - 4 

2. Western Currency Facility Expansion: BEP began expanding the Western Currency Facility 

(WCF) in FY 2018 to house and support the new equipment required for the next generation of 

currency design. 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. 

The expansion work continued though FY 2022. BEP anticipates additional costs related to 

contract overhead and material price escalation in FY 2023. The project completion date has 

been extended to FY 2023 mainly due to unforeseen site conditions, electrical issues, and 

weather delays. 

3. Banknote Design and Development: In FY 2023, BEP will continue to work on this multiyear project with the Federal Government’s Advanced Counterfeit Deterrent (ACD) Steering 

Committee to 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 counterfeiting and a raised tactile feature to provide 

meaningful access to blind and visually impaired individuals. The committee includes 

representatives from BEP, the Department of the Treasury, the U.S. Secret Service, and the 

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. The current note release sequence is as follows: $10, $50, $20, $5, 

$100. 

4. 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 FRB’s annual currency order, the FRB and BEP developed 

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. In 

FYs 2022 and 2023, the major retooling initiatives include: 

 Continuation of the upgrade and complete automation of the $100 finishing line to integrate 

Single Note Inspection technology. The capability to inspect single notes provides a 

significant improvement over BEP’s traditional sheet inspection process. Spoilage will be 

reduced significantly, and processing efficiency will increase resulting in cost savings. 

 Replace obsolete electrical and mechanical parts on existing presses and upgrade the 

inspection system to meet present and future currency printing requirements, as well as to 

extend the life of electrical and mechanical systems in the existing machinery. 

 The LEPE Inspection and Electrical Upgrades project is to make improvements to the 

existing system in operation to bring them up to the new capabilities that are included on the 

next generation LEPE system mentioned above. 

 

5. Human Capital/Talent Management: 

The BEP will continue with its FY 2022 strategic initiatives into FY 2023 by updating its hiring 

and recruiting plan to ensure the bureau accomplishes talent management initiatives, while filling 
BEP - 5 

personnel gaps in needed mission critical occupations. Throughout FY 2021, the BEP continued 

to fill gaps in both STEM and cybersecurity positions by utilizing a variety of hiring authorities 

and participating in four virtual fairs that specifically targeted STEM positions in the federal 

government. Additionally, the BEP attended 12 virtual and two in-person recruitment events in 

the Washington D.C. and Dallas/Ft. Worth locations to attract potential candidates in targeted 

demographic and underrepresented areas. STEM positions will continue to be highlighted in 

FY 2023 by the remaining targeted fields/occupations in our annual Recruitment, Hiring, and 

Outreach Plan and by our continued participation in upcoming recruitment events/career fairs 

that highlight our STEM and mission critical occupations. In FY 2021 the BEP hired 33 new 

hires in the STEM field; and in the first quarter of FY 2022, three STEM positions have been 

filled. In addition, BEP hired 25 employees in identified mission critical occupations. 

Throughout FY 2022, BEP continues its efforts focusing on employee engagement by educating 

the workforce on important topics such as: increasing employee satisfaction; building and 

sustaining high trust and accountability; improving interpersonal and cross-functional 

communications; improving employee appreciation; and strengthening meaningful connections. 

Additionally, BEP’s Office of Human Resources is assisting with developing Employee 

Engagement action plans promoting increased innovativeness, collaboration, and diversity in 

thought. 

In FY 2023, BEP will continue its focus on employee engagement by educating the workforce on 

important engagement topics, reevaluating the current Engagement Strategy, recruiting new 

volunteers to implement the engagement initiatives, and promote direct communications with 

BEP executive leadership reinforcing their voices are heard. 

1.1 – Resources Detail Table 

Dollars in Thousands 

 FY 2021 FY 2022 FY 2023 FY 2022 to FY 2023 

Budgetary Resources Actual Revised Estimate Estimate % Change 

 FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT 

Revenue/Offsetting Collections 

 Currency Program 1,829 $1,212,649 1,860 $1,066,911 1,860 $1,139,803 0.00% 6.56% 

 Other Programs 0 2,207 0 3,000 0 3,000 NA 0.00% 

 DC Replacement Facility 3 33,875 3 11,769 3 897,048 0.00% 7522.13% 

Total Revenue/Offsetting Collections 1,832 $1,248,731 1,863 $1,081,680 1,863 $2,039,851 0.00% 88.58% 

Obligations 

Manufacturing 

 Direct Manufacturing 861 571,892 876 508,996 876 531,984 0.00% 4.52% 

 Indirect Manufacturing Support 968 642,964 984 560,915 984 610,819 0.00% 8.90% 

 DC Replacement Facility 3 33,875 3 11,769 3 897,048 0.00% 7522.13% 

Total Expenses/Obligations 1,832 $1,248,731 1,863 $1,081,680 1,863 $2,039,851 0.00% 88.58% 

Net Results 0 0 0 0 0 0 NA NA 

 
BEP - 6 

1.2 – Budget Adjustments Table 

C – Budget Increases and Decreases Description 

Program Decreases .................................................................................-$928,907,000 / -0 FTE 

Currency Program -$42,413,000 / -0 FTE 

The yearly currency order (YCO) is 7.2B notes in FY 2022. 

Travel Decrease -$1,215,000 / -0 FTE 

The decrease is due to COVID travel restrictions. 

DC Replacement Facility -885,279,000 / -0 FTE 

The obligation for the next phase of DC Replacement Facility project is delayed to FY 2023. 

Program Increases .................................................................................+ $66,334,000 / +0 FTE 

Additional Overtime +$7,500,000 / +0 FTE 

The overtime in FY 2021 was trending at a higher rate due to COVID. BEP anticipates the 

higher overtime rate to continue into FY 2022. 

Dollars in Thousands 

 FTE Materials Operating & 

Capital Total 

FY 2022 Original Estimate 1,863 $374,278 $1,569,975 $1,944,253 

Program Changes 

Program Decreases: 0 (42,413) (886,494) (928,907) 

Currency Program 0 (42,413) 0 (42,413)

Decrease in Travel 0 0 (1,215) (1,215) 

Washington D.C. Replacement Facility 0 0 (885,279) (885,279)

Program Increases: 0 0 66,334 66,334 

Additional overtime required to meet YCO 0 0 7,500 7,500 

Service Contracts 0 0 53,584 53,584 

WCF Building Expansion 0 0 5,250 5,250 

Subtotal Program Changes 0 (42,413) (820,160) (862,573)

FY 2022 Revised Estimate 1,863 $331,865 $749,815 $1,081,680 

Changes to Base 

Maintaining Current Levels (MCLs) 0 0 19,110 19,110 

Pay Annualization (2.7% average pay raise) 0 0 2,002 2,002 

Pay-Raise (4.6% average pay raise) 0 0 9,620 9,620 

Non-Pay 0 0 7,488 7,488 

Subtotal Changes to Base 0 0 19,110 19,110 

FY 2023 Current Services 1,863 $331,865 $768,925 $1,100,790 

Program Changes 

Program Decreases: 0 0 (17,469) (17,469) 

Manufacturing Support 0 0 (12,769) (12,769) 

WCF Building Expansion 0 0 (4,700) (4,700)

Program Increases: 0 43,261 913,269 956,530 

Currency Program 0 43,261 0 43,261 

Retooling 0 0 19,750 19,750 

Washington D.C. Replacement Facility 0 0 885,279 885,279 

Facilities Support 0 0 825 825 

Information Systems 0 0 3,300 3,300 

Security and Accountability 0 0 4,115 4,115 

Subtotal Program Changes 0 43,261 895,800 939,061 

FY 2023 Estimate 1,863 $375,126 $1,664,725 $2,039,851 
BEP - 7 

Service Contracts +53,584,000 / +0 FTE 

Large service contracts awarded in FY 2021 include asbestos abatement service, repairing annex 

building exterior façade, banknote design and development, and cybersecurity. 

WCF Expansion +5,250,000 / +0 FTE 

The increase is due to equitable adjustments and claims. 

Maintaining Current Levels (MCLs) ......................................................+$19,110,000 / +0 FTE 

Pay Annualization (2.7% average pay raise) +$2,002,000 / +0 FTE 

Funds are required for annualization of the January 2022 2.7% average pay raise. 

Pay Raise (4.6% average pay raise) +$9,620,000 / +0 FTE 

Funds are required for a 4.6% average pay raise in January 2023. 

Non-Pay +$7,488,000 / +0 FTE 

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

and equipment. 

Program Decreases ..................................................................................-$17,469,000 / -0 FTE 

Manufacturing Support -$12,769,000 / -0 FTE 

This reflects decrease of planned obligation for Manufacturing Support. 

WCF Building Expansion -$4,700,000 / -0 FTE 

This reflects decrease of anticipated obligations from $13M in FY 2022 to $8.3M in FY 2023. 

Program Increases .................................................................................+$956,530,000 / +0 FTE 

Currency Program Increase +$43,261,000 / +0 FTE 

This reflects currency order commitment increase from 7.2B to 7.6B notes. 

Retooling +19,750,000 / + 0 FTE 

This increase is for planned obligation for new equipment for the DC Replacement Facility and 

WCF. 

Washington, DC Replacement Facility +885,279,000 / +0 FTE 

This increase is for obligations related to construction activities originally planned in FY 2022. 

Facilities Support +$825,000 / +0 FTE 

This increase is for planned obligations for facilities support. 

Information Systems +$3,300,000 / +0 FTE 

This increase is for planned obligations for IT hardware and software upgrades. 

Security and Accountability +$4,115,000, +0 FTE 

This increase is for planned obligations for new traceability project and security equipment. 
BEP - 8 

1.3 – Object Classification (Schedule O) 

Dollars in Thousands 

 FY 2021 FY 2022 FY 2023 

Object Classification 

Actual 

Obligations 

Estimated 

Obligations 

Estimated 

Obligations 

11.1 - Full-time permanent 169,368 189,926 195,230 

11.3 - Other than full-time permanent 268 200 206 

11.5 - Other personnel compensation 0 5,698 8,757 

11.6 – Overtime 44,505 32,800 33,716 

11.9 - Personnel Compensation (Total) 214,141 228,624 237,909 

12.0 - Personnel benefits 76,133 83,690 86,027 

13.0 - Benefits for former personnel 36 3 3 

Total Personnel and Compensation Benefits $290,310 $312,317 $323,939 

21.0 - Travel and transportation of persons 442 750 765 

22.0 - Transportation of things 824 821 846 

23.1 - Rental payments to GSA 3,710 3,124 3,218 

23.2 - Rental payments to others 780 1,101 832 

23.3 - Communication, utilities, and misc. charges 17,977 19,168 19,745 

24.0 - Printing and reproduction 3 5 3 

25.1 - Advisory and assistance services 29,753 30,938 31,868 

25.2 - Other services 171,317 123,291 127,001 

25.3 - Other purchases of goods & serv from Govt accounts 33,650 34,731 915,310 

25.4 - Operation and maintenance of facilities 658 76,372 78,668 

25.5 - Research and development contracts 3,357 3,557 3,664 

25.7 - Operation and maintenance of equip 24 0 0 

25.8 - Subsistence and support of persons 152 0 0 

26.0 - Supplies and materials 579,007 351,362 394,623 

31.0 – Equipment 83,834 123,958 139,179 

32.0 - Land and structures 32,749 0 0 

42.0 - Insurance claims and indemnities 184 185 190 

Total Non-Personnel $958,421 $769,363 $1,715,912 

Total Budgetary Resources $1,248,731 $1,081,680 $2,039,851 

 

Full-time Equivalents (FTE) 1,832 1,863 1,863 

D – Appropriations Language and Explanation of Changes 

BEP does not require annual appropriations language. 

E – Legislative Proposals 

BEP has no legislative proposals. 
BEP - 9 

Section II – Annual Performance Plan and Report 

A – Strategic Alignment 

BEP's vision is to be the world standard securities printer providing its customers and the public with 

superior products through excellence in manufacturing and innovation. BEP supports the following 

Department of the Treasury FY 2022-2026 strategic goals: 

 Goal 2: Enhance National Security 

o Cyber Resiliency of Financial Systems and Institutions 

 Goal 3: Financial System Vulnerabilities: 

o Financial Innovation 

 Goal 4: Combat Climate Change 

o Sustainable Treasury Operations 

 Goal 5: Modernize Treasury Operations 

o Recruit and Retain a Diverse and Inclusive Workforce 

o Better Use of Data 

U.S. currency is used globally and as its manufacturer, BEP needs to achieve and maintain bestin-class practices for U.S. currency to be accepted worldwide. Working closely with its partners 

in the U.S. Currency Program, BEP looks forward to updating the next series of secure notes. 

BEP continues to make every effort to meet its mission to manufacture sophisticated and 

technologically advanced notes that are dependable in commerce. This achievement requires the 

focus and determination of the entire agency, since BEP faces challenges and is committed to 

stay ahead of increasingly sophisticated counterfeiters. In addition, BEP is working to align 

budget activities and performance measures to the new Treasury FY 2022-2026 Strategic Plan. 

In accordance with the Government Performance and Results Act Modernization Act of 2010 

(GPRAMA), the Department of the Treasury has finalized the FY 2022 – 2026 Departmental 

Strategic Plan. Bureau of Engraving and Printing will publish a component plan that aligns 

bureau activities and priorities to the Department’s by the 3rd quarter of FY 2022. 
BEP - 10 

B – Budget and Performance by Budget Activity 

2.1 – Manufacturing Resources and Measures 

Dollars in Thousands 

FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 

 Resource Level Actual Actual Actual Actual Actual Revised 

Estimate Estimate 

Expenses/Obligations $712,920 $914,134 $955,212 $878,611 $1,248,731 $1,081,680 $2,039,851 

Budget Activity Total $712,920 $914,134 $955,212 $878,611 $1,248,731 $1,081,680 $2,039,851 

Full-time Equivalents (FTE) 1,818 1,748 1,727 1,740 1,832 1,863 1863 

 

Performance Measure 

FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2021 FY 2022 FY 2023 

Actual Actual Actual Actual Actual Target Target Target 

Currency Notes Delivered 

Returned Due to Defects 

(parts per million) 

B .0031 .009 .02 .0016 <1ppm <1ppm <1ppm 

FEVS Satisfaction Index1 N/A 73 74 74 NR >65% >65% >65% 

Lost Time Accident rate 

(per 100 employees) 1.36 2 0.78 2 1.48 1.01 1.59 < 1.8 < 1.8 < 1.8 

Manufacturing Costs for 

Currency (Dollars per 

Thousand Notes Produced) 

$43.58 $47.41 $50.33 $56.193 $61.81 $64.33 $63.07 $65.00 

Yearly Currency Order N/A N/A 100% 100% 100% 100% 100% Disc 

Key: B – Baseline; NR – Not Received 

1 FEVS Satisfaction scores are keyed to the year of survey, not the year results are received. 

2 Lost Time Accident Rates are adjusted following adjudication of accident reports received during each fiscal year. 

The FY 2017 and 2018 numbers shown reflect these adjustments. 

3 Target Manufacturing Cost in FY 2020 was increased from $55.73 to $59.65 in Jun 2020 in response to an increase in 

FY 2020 order due to pandemic demand. 

Manufacturing Budget and Performance 

($2,039,851,000 from reimbursable sources) 

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

strategic goals. 

Description of Performance: 

Currency Notes Returned Due to Defects (in parts per million or 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 2021, with an actual result of 0.0016 ppm notes 

returned due to a defect. BEP’s target for this performance metric will be held constant at <1 

ppm for FY 2022 and FY 2023. 

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 Satisfaction Index with a target of 65 percent or greater. In FY 2022 and 2023, 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 
BEP - 11 

in the workplace. BEP’s FY 2021 Lost Time Accident rate was at 1.59 cases per 100 employees, 

lower than the target of 1.80 cases per 100 employees. This performance resulted from increased 

focus on following safe work practices and avoiding hazards. For FY 2022, 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. The 1.8 case rate represents approximately one injury per facility per month. BEP’s 

target will be held at 1.80 cases per 100 employees for FY 2022 and FY 2023. 

Manufacturing Cost 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 and timing of denominations 

ordered. This indicator is strongly affected by the portion of the order devoted to high-value 

notes, which are more expensive to produce. Actual performance against standard costs depends 

on BEP’s ability to meet spoilage, efficiency, and capacity utilization goals. The final FY 2021 

cost was $61.81 per 1,000 notes produced. BEP’s target for this performance metric is $63.07 in 

FY 2022. The notional target for FY 2023 is set at $65.00 per 1,000 notes produced. This target 

will be refined once the FY 2023 currency order is received. 

The Yearly Currency Order (YCO) measures BEP’s success in delivering the total number of 

currency notes ordered by the Federal Reserve Board annually, this is being discontinued in 

FY 2023. 

The FY 2021 order met its target of delivering 100 percent of the currency notes ordered, with 

BEP delivering 7.0B notes. Recent currency orders now include a minimum quantity of notes by 

denomination, as well as a maximum. In FY 2022, the minimum quantity requested is 6.876B 

notes. 

C – Changes in Performance Measures 

For FY 2023, with the publication of Treasury’s Strategic Plan for FY 2022-2026, BEP will 

work this year to baseline performance against the new strategic objectives. This could result in 

changes to performance measures in the FY 2024 budget. 

Section III – Additional Information 

A – Summary of Capital Investments 

A summary of capital investments, including major information technology and non-technology 

investments can be viewed and downloaded at: 

https://www.treasury.gov/about/budget-performance/Pages/summary-of-capitalinvestments.aspx.