Bureau of Engraving and 

Printing

FY 2017

President’s Budget

February 9, 2016
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Table of Contents

Section 1 – Purpose ....................................................................................................................... 3

1A – Mission Statement.............................................................................................................. 3

1.1 – Resource Detail Table........................................................................................................ 3

1B – Vision, Priorities and Context............................................................................................ 3

Section 2 – Budget Adjustments and Appropriation Language............................................... 7

2.1 – Budget Adjustments Table................................................................................................. 7

2A – Budget Increases and Decreases Description..................................................................... 7

2.2 – Operating Levels Table...................................................................................................... 9

2B - Appropriations Language and Explanation of Changes ..................................................... 9

2C – Legislative Proposals.......................................................................................................... 9

Section 3 – Budget and Performance Plan ............................................................................... 10

3A – Manufacturing.................................................................................................................. 10

3.1.1 – Manufacturing Budget and Performance Plan.............................................................. 11

Section 4 – Supplemental Information...................................................................................... 12

4A – Summary of Capital Investments..................................................................................... 12
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Section 1 – Purpose

1A – Mission Statement

To develop and produce United States currency notes trusted worldwide.

1.1 – Resource Detail Table

Dollars in Thousands

Bureau of Engraving and Printing FY 2015 FY 2016 FY 2017 FY 2016 to FY 2017

Budgetary Resources Actual Estimated Estimated $ Change % Change

FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT

Revenue/Offsetting Collections

Other Income

Federal Reserve Notes 0 617,364 0 848,940 0 836,335 0 (12,605) .00 -1.48%

Other Security Products 0 3,000 0 5,000 0 5,000 0 0 .00 N/A

Currency Reader Program 0 16,125 0 10,000 0 5,000 0 (5,000) .00 -50.00%

Total Revenue/Offsetting Collections 0 636,489 0 863,940 0 846,335 0 (17,605) .00 -2.04%

Expenses/Obligations

Manufacturing

Direct Manufacturing 576 374,092 764 521,624 764 512,124 0 (9,500) N/A -1.82%

Indirect Manufacturing 1,224 262,397 1,160 342,316 1,160 334,211 0 (8,105) N/A -2.37%

Total Expenses/Obligations 1,800 636,489 1,924 863,940 1,924 846,335 0 (17,605) N/A -2.04%

Net Results 0 0 0 0 0 0 0 0 .00 N/A

1B – Vision, Priorities and Context

The Bureau of Engraving and Printing produces US currency notes ordered by the Federal 

Reserve Board. The Bureau 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. This 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 also provides technical assistance and advice to other Federal agencies in the design 

and production of documents which require counterfeit deterrent features, due to their innate 

value or other characteristics. Other activities at the Bureau 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. 

The mission of the BEP is to develop and produce United States currency notes, trusted 

worldwide, in support of Treasury’s strategic objective of “Facilitate commerce by providing 

trusted U.S. currency, services, and products for the American public and enterprises.”

United States currency is used globally and as its designer and manufacturer BEP needs to 

achieve and maintain best in class practices in order for it to be accepted worldwide. 
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After years of research and development of cutting edge technologies, BEP is producing a new 

$100 note that includes some of the most advanced counterfeit design features found anywhere 

in the world. This achievement requires the focus and determination of the entire agency and is 

indicative of the challenges that lie ahead, reconfirming the BEP’s in its commitment to stay 

ahead of increasingly sophisticated counterfeiters. 

FY 2017 Priorities 

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.

In 2017, BEP will continue working with the Advanced Counterfeit Deterrent (ACD) Steering 

Committee to research and develop future currency designs for the next family of redesigned 

notes that will enhance and protect U.S. currency notes.

Meaningful Access:

Work continues in FY 2017 on the goal of enabling the Nation’s currency to better serve 

domestic and international users. BEP is following two project paths to provide meaningful 

access for the blind and visually impaired, a Currency Reader (A currency reader is 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. 

A U.S. Currency Reader pilot program was concluded on Dec. 31, 2014, with more than 17,000 

currency readers ordered under the pilot program. On January 2, 2015, a national rollout of the 

program was launched. To date, more than 34,000 Currency Readers have been ordered. BEP is 

working with the Library of Congress’ National Library Services (NLS) for distribution of the 

readers. Additionally, a questionnaire was developed and cleared by OMB that enables BEP to 

gather user data on the currency readers. BEP’s Voice of the Customer Questionnaire includes 

questions on: habits before and after use in various situations; frequency of use; convenience; use 

of other devices; suggested improvements; as well as plans for continued use. The questionnaire 

was initially disseminated during the American Council of the Blind (ACB) and National 

Federation of the Blind (NFB) conferences in July 2015. 

In addition to the reader program, the Bureau will be incorporating raised tactile features (RTF) 

into the next redesign of currency that will enable users to denominate US currency by touch, 

assisting every American to better denominate currency. BEP expects to begin issuing a new 

$10 note in 2020 that will include a tactile feature that increases accessibility for the visually 

impaired. The $10 note was selected for redesign based on a number of factors and with 

guidance from the Advanced Counterfeit Deterrence (ACD) Steering Committee, an interagency group established to monitor and communicate counterfeit deterrence issues and 
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dedicated to maintaining and ensuring the integrity of U.S. currency. While many factors were 

taken into consideration, the primary reason for redesigning currency is to address current and 

potential counterfeiting threats. In addition to the tactile feature, the new the new $10 note will 

feature new design aspects and a portrait of a woman. Throughout 2017, testing and refinement 

of features will continue to determine which processes and potential features work best at the 

production volumes needed for U.S. currency. BEP will also continue its efforts to research and 

develop features that will enhance future note designs, working with National and Federal 

Laboratories and Research Centers to expand our outreach to identify new technologies that may 

be used in feature development. 

Retooling:

BEP is in the process of a multi-year effort to retool BEP’s manufacturing processes with stateof–the-art intaglio printing presses, electronic inspection systems, and finishing equipment. The 

successful implementation of this advanced technology will improve productivity, reduce 

environmental impact, and enhance counterfeit deterrence of U.S. currency. During 2016 and 

2017 plans include: 

BEP Workforce:

Throughout 2017, the Bureau will continue to develop, execute, and communicate the results of 

Employee Engagement Plans and the FEVS annual survey results. In addition to implementing 

BEP Human Capital Plan initiatives, efforts will continue to fill gaps in needed STEM skill sets 

to support our Currency Quality Assurance (CQA) efforts in addition to adding resources in 

technology development and feature testing areas. 

Currency Quality Assurance (CQA) Program:

BEP has partnered with the Federal Reserve Board to reinvent its quality management program 

based on best practices of leading manufacturers. The Bureau, in collaboration with its 

stakeholders, developed a robust CQA program that began in 2014 and will continue to mature in 

2017. This re-invention has moved BEP to a proactive approach of building quality into 

production processes. 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. 
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Replacement Production Facility:

Work on the replacement production facility is going forward; in May 2015 a site selection 

evaluation contract was awarded. In 2016 BEP will award both a construction management

administrative support contract and a facility design programming contract. Efforts are also 

underway in FY 2016 to narrow down the possible site selections to the top 3 for further 

evaluation. The new production facility building 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. BEP plans to be transparent and communicate activity and resulting changes 

to the workforce on a regular basis.

FY 2016 Priorities

The importance of producing and delivering currency of consistently high quality, note after 

note, cannot be overstated. Throughout 2016, testing and refinement of proposed raised tactile 

features are priorities to determine which processes and potential features work best at full 

production speed and volumes needed to produce U.S. currency. 

BEP’s Currency Quality Assurance (CQA) program successfully implemented a risk-based, 

operationally focused internal quality auditing program in addition to improving product and 

procedural plant-to-plant consistency.

Key Accomplishments

During 2016, BEP acquired equipment that will enable the addition of tactile features to U.S. 

currency as well as continue the multi-year effort to retool BEP’s manufacturing processes with 

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

The successful implementation of this advanced technology will improve productivity, reduce 

environmental impact, and enhance counterfeit deterrence of U.S. currency.

BEP disseminated a Voice of the Customer survey to over 300 individuals who received an iBill 

currency reader. The questionnaire included questions on: habits before and after use in various 

situations; frequency of use; convenience; use of other devices; suggested improvements; as well 

as plans for continued use. Approximately 90% of respondents believe the iBill currency reader 

they received is easy, convenient, useful, and successfully meets their needs. Metrics show that 

most prefer to use the reader at home. Based on customer feedback, BEP believes that the U.S. 

Currency Reader program has proven to be a successful initiative in providing visually impaired 

persons with a means to independently denominate U.S. currency. 

BEP continued to make progress on enhancing its cybersecurity posture. The bureau reduced the 

number of Personal Identity Verification privileged users, and focused on implementing least 

privileged access i.e., further restricted privileged access based on individual’s role and the 

specific access required.
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Section 2 – Budget Adjustments and Appropriation Language

2.1 – Budget Adjustments Table

Dollars in Thousands

Bureau of Engraving and Printing FTE Materials Operating & Capital Total

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

Changes to Base

Maintaining Current Levels (MCLs) 0 $0 $9,395 $9,395

Pay-Raise 0 $0 $2,404 $2,404

Pay Annualization 0 $0 $799 $799

Non-Pay 0 $0 $6,192 $6,192

Efficiency Savings 0 $0 ($2,000) ($2,000)

Reduction in Overtime 0 $0 ($2,000) ($2,000)

Subtotal Changes to Base 0 $0 $7,395 $7,395

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

Program Changes

Program Decreases 0 $0 ($25,000) ($25,000)

Currency Reader 0 $0 ($5,000) ($5,000)

DCF Production Facility Replacement 0 $0 ($10,000) ($10,000)

Reduction in Retooling 0 $0 ($10,000) ($10,000)

Subtotal Program Changes 0 $0 ($25,000) ($25,000)

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

2A – Budget Increases and Decreases Description

Maintaining Current Levels (MCLs) ......................................................+$9,395,000 / +0 FTE

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

Funds are required for the proposed January 2017 pay-raise and the annualization of the 2016 

pay-raise.

Pay Annualization +$799,000 / +0 FTE 

Funds are required for annualization of the January 2016 pay-raise.

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

Funds are required for non-labor costs such as travel, contracts, rent, and equipment.

Efficiency Savings ......................................................................................-$2,000,000 / +0 FTE

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

As out of date equipment is replaced with equipment that is more efficient, less down time, and 

new technology, reliance on overtime will be reduced. 

Program Decreases ..................................................................................-$25,000,000 / +0 FTE

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

As the Currency Reader distribution program continues to evolve from its 2015 release and 

downloadable applications (apps) and image recognition technology becomes more 

commonplace, BEP expects demand for currency readers to be reduced in FY 2017. 

DCF Production Facility Replacement -$10,000,000 / +0 FTE 

The initiative was requested in 2016 to fund a Project Management contract(s) to develop site

surveys, environmental impact analysis, local infrastructure assessment, local economic 
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development, architectural renderings. Additional follow on contractual activities, i.e., facility 

design are expected 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 2017 funds for this 

initiative are reduced. Retooling is a multi-year project that replaces older, fully depreciated 

production equipment. Replacing out of date equipment on a regular basis allows BEP to be 

more quality and cost effective and efficient in meeting customer requirements for the 

production of currency notes. New equipment is typically more energy efficient, eco-friendly 

and machine down time is reduced. In addition, new equipment acquired by BEP has the 

technical capability of producing the next generation of advanced counterfeit deterrence features

for future design enhancements.
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2.2 – Operating Levels Table

Dollars in Thousands

Bureau of Engraving and Printing FY 2015 FY 2016 FY 2017

Object Classification Actual Estimated Estimated

11.1 - Full-time permanent 174,100 175,357 177,560

11.3 - Other than full-time permanent 210 200 150

11.5 - Other personnel compensation 2,450 2,250 2,050

11.6 - Overtime 16,700 17,000 15,000

11.9 - Personnel Compensation (Total) 193,460 194,807 194,760

12.0 - Personnel benefits 54,957 51,000 51,500

Total Personnel Compensation and Benefits $248,417 $245,807 $246,260

21.0 - Travel and transportation of persons 1,000 1,450 1,450

22.0 - Transportation of things 250 250 250

23.1 - Rental payments to GSA 2,000 2,000 2,000

23.2 - Rental payments to others 1,000 1,000 1,000

23.3 - Communication, utilities, and misc charges 9,050 14,350 14,350

24.0 - Printing and reproduction 150 250 250

25.1 - Advisory and assistance services 2,250 3,500 3,500

25.2 - Other services 25,222 121,673 110,865

25.4 - Operation and maintenance of facilities 5,500 8,500 8,500

25.5 - Research and development contracts 3,700 7,000 7,000

25.7 - Operation and maintenance of equip 6,250 11,900 11,900

26.0 - Supplies and materials 294,400 292,250 300,000

31.0 - Equipment 37,125 153,750 138,750

42.0 - Insurance claims and indemnities 175 260 260

Total Non-Personnel 388,072 618,133 600,075

Total Budgetary Resources $636,489 $863,940 $846,335

Budget Activities:

Manufacturing 636,489 863,940 846,335

Total Budgetary Resources $636,489 $863,940 $846,335

FTE 1,800 1,924 1,924

2B - Appropriations Language and Explanation of Changes

The Bureau of Engraving and Printing receives no appropriated funds from Congress.

2C – Legislative Proposals

The Bureau of Engraving and Printing has no legislative proposals for FY 2017.
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Section 3 – Budget and Performance Plan

3A – Manufacturing

($846,335,000 from expenses/obligations): 

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

strategic goals. 

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. This measure is based on 

contracted price factors and anticipated productivity improvements, as well as the mix of 

denominations ordered year to year. As more sophisticated counterfeit deterrent design features 

are produced, paper and ink costs increase, resulting in increased total manufacturing costs. 

Actual performance against standard cost depends on BEP’s ability to meet annual spoilage, 

efficiency, and capacity utilization goals. In order to meet this measure, costs and other standard 

manufacturing performance metrics are tracked at each stage of production and corrections are 

made on the shop floor. In addition, production and quality metrics are discussed on a monthly 

basis at the executive level and corrective action plans are developed. In 2015 the cost of 

manufacturing was lower than anticipated, as the actual result realized for this measure was 

$42.35 per 1,000 notes produced against a target of $54.00. The performance goals for both 

FY 2016 and FY 2017 will continue to reflect the high cost of redesigned $100 notes as a 

proportion of the total annual order; however, due to productivity improvements BEP is able to 

reduce the target to $50.00 per 1,000 notes produced for both 2016 and 2017.

Percent of currency notes returned due to defects is an indicator of the Bureau’s ability to 

provide a quality product. All notes delivered to the Federal Reserve go through rigorous quality 

inspections during the manufacturing process. In addition, notes are inspected a final time using 

the same inspection systems used at the Federal Reserve Banks. These inspections ensure that all 

counterfeit deterrent features, both overt and covert, are functioning as designed. BEP’s 

FY 2015 target for this performance metric is .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 FY 2016 and FY 2017.

BEP’s Best Places to Work in Federal Government Ranking is based on the results of the 

Partnership for Public Service data on three questions in the Federal Employee Viewpoint 

Survey. This survey is sent annually to all Federal employees seeking their opinion on their 

organization’s leadership and programs relating to fairness, employee empowerment and 

recognition. BEP’s 2015 rank was 74 out of 320. The Bureau continues to sponsor activities and 

encourage employee engagement by contributing ideas and participation in events, which are 

aimed at improving the work environment for all employees. FY16 metrics are not yet available; 

however 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). This reflects the maturation of the EMS as well as 
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the Bureau’s commitment to continually improve its Environmental Health and Safety (EHS) 

performance, as both of the Bureau’s manufacturing facilities received unconditional 

recertification to the ISO 14001 standard in FY 2015. 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. BEP’s target for this performance metric will be held constant at 30 pounds per 1000 

notes delivered for FY 2016 and FY 2017.

Lost Time Accident Rate per 100 Employees measures the Bureau’s ability to reduce injuries 

and illnesses in the workplace. BEP’s key performance indicator is the annual Occupational 

Safety and Health Administration’s (OSHA) reportable lost time case rate and number of lost 

workdays. In 2015 BEP’s lost time case rate was 1.65 against a target of 1.8 cases per 100 

employees. The Bureau remains committed to improving the safety of its employees, and 

conducts an analysis to determine the root cause of any injury and seeks to identify best practices 

in safety. BEP will continue to allocate resources to have the greatest impact on preventing 

future injuries. BEP’s target for this performance metric will be held constant at 1.8 per 100 

employees for FY 2016 and FY 2017.

3.1.1 – Manufacturing Budget and Performance Plan

Dollars in Thousands

Manufacturing Budget Activity

Resource Level FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017

Actual Actual Actual Actual Actual Actual Estimated Estimated

 Expenses/Obligations $555,000 $517,750 $630,000 $645,150 $733,208 $636,489 $863,940 $846,335

Budget Activity Total $555,000 $517,750 $630,000 $645,150 $733,208 $636,489 $863,940 $846,335

Measure FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2015 FY 2016 FY 2017

Actual Actual Actual Actual Actual Actual Target Target Target

Best Places to Work in 

Federal Government 

Ranking

N/A 174 178 47 51 74 99 99 99

Lost Time Accident 

Rate per 100 

Employees

N/A 1.4 1.9 1.63 1.73 1.65 1.6 1.8 1.8

Manufacturing Costs 

For Currency (Dollar 

Costs Per Thousand 

Notes Produced)

44.85 34.6 43.34 50.45 44.22 42.35 55.0 50.0 50.0

Percent of Currency 

Notes Delivered 

Returned Due to 

Defects

N/A .0 .0 .466 .00001 .0000003 .0001 .0001 .0001

Key: DISC - Discontinued 
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Section 4 – Supplemental Information

4A – Summary of Capital Investments

The Bureau of Engraving and Printing’s (BEP) capital investment strategy is comprised of 

several broad investment categories with more specific smaller projects in each category. 

The Bureau’s mission to develop and produce U.S. Currency notes, trusted worldwide, demands 

that BEP continually update and improve its manufacturing processes by investing in new 

technologies and innovations. The Bureau’s retooling project replaces older, fully depreciated 

production equipment. Replacing out of date equipment allows BEP to be more quality and cost 

effective and efficient in meeting customer requirements for the production of currency notes. In 

addition, the Bureau is focused on building the capability to produce new currency designs with 

tactile features to provide meaningful access to US currency for the blind and visually impaired.

BEP participates as a partner in significant Treasury-wide enterprise level investments such as 

Homeland Security Presidential Directive-12, HRConnect (a Human Resources Line of Business 

service provider) and the Treasury Learning Management System (TLMS).

The Bureau’s IT portfolio includes a ‘cloud first’ approach to implementing business systems. 

The Oracle eBusiness Suite is an integrated manufacturing suite which runs at the Oracle 

Corporation’s “Federal on Demand” Shared Service Center in Austin, Texas. 

A summary of capital investment resources, including major information technology and nontechnology investments, can be viewed/downloaded here: 

http://www.treasury.gov/about/budget-performance/Pages/summary-of-capital-investments.aspx

This website also contains a digital copy of this document.