Bureau of Engraving and Printing 

Program Summary by Budget Activity 

Dollars in Thousands 

 FY 2020 FY 2021 FY 2022 FY 2021 to 

FY 2022 

Budget Activity Actual Revised Estimate Estimate % Change 

Manufacturing $873,561 $1,039,054 $1,047,205 0.78% 

DC Replacement Facility $5,050 $29,940 $897,048 2896.15% 

Total Cost of Operations $878,611 $1,068,994 $1,944,253 81.88% 

Full-time Equivalents (FTE) 1,740 1,863 1,863 0.00% 

 

Summary 

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

States currency notes trusted worldwide. 

BEP’s FY 2022 request funds the following projects: 

1. 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. Additionally, a provision of the 2018 Farm Bill authorizes 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. BEP is 

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

Engineers. The property transfer Memorandum of Agreement (MOA) between USDA and 

Treasury was finalized in early 2020. The formal transfer of administrative control from USDA 

to Treasury is anticipated in late 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. 

In 2021, BEP plans to begin early site development construction activities estimated at $30 

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. Contracts for this work will be awarded in late summer 2021. FY 2022 funding in 

the amount of $897 million will include the award of the construction contract for the 

replacement facility. Specifically, it will fund the structure of the building. The contract will 

cover the construction of a smaller, more efficient facility to support current and future 

manufacturing processes.

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 is expected to be completed in FY 2022. The FY 2022 projected cost for the 

WCF is $1 million for construction close-out activities. 
3. Banknote Design and Development: In FY 2022, BEP will continue to work on this multi-year 

project 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. 

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

5. Human Capital/Talent Management: The BEP will continue its designated talent 

management initiatives, while filling personnel gaps in needed STEM and cybersecurity skill 

sets. Throughout FY 2021, BEP will rebrand employee engagement by educating the 

workforce on important engagement topics, reevaluating the current Engagement Strategy, 

recruiting new volunteers to implement the engagement initiatives, and promoting direct 

communications with BEP executive leadership to reinforce that their voices are heard. BEP 

will also 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 2021 Original Estimate 1,863 $248,921 $638,479 $887,400 

Program Changes 

Program Increases 0 140,079 41,515 181,594 

Currency Program (6.8B to 7.6B) 0 120,079 41,515 161,594 

Currency Paper Production COOP 0 20,000 0 20,000 

Subtotal Program Changes 0 140,079 41,515 181,594 

FY 2021 Revised Estimate 1,863 $389,000 $679,994 $1,068,994 

Changes to Base 

Maintaining Current Levels (MCLs) 0 5,278 11,145 16,423 

Pay Annualization (1.0% average pay raise) 0 0 726 726 

Pay Raise (2.7% average pay raise) 0 0 5,894 5,894 

FERS Contribution Increase 0 0 2,010 2,010 

Non-Pay 0 5,278 2,515 7,793 

Subtotal Changes to Base 0 5,278 11,145 16,423 

FY 2022 Current Services 1,863 $394,278 $691,139 $1,085,417 

Program Changes 

Program Decreases 0 (20,000) (25,247) (45,247) 

Currency Paper Production COOP 0 (20,000) 0 (20,000) 

Facilities Support 0 0 (4,890) (4,890) 

Manufacturing Support 0 0 (10,512) (10,512) 

WCF Building Expansion 0 0 (3,770) (3,770) 

Security and Accountability 0 0 (6,075) (6,075) 

Program Increases 0 0 904,083 904,083 

Washington D.C. Replacement Facility 0 0 867,108 867,108 

Retooling 0 0 36,975 36,975 

Subtotal Program Changes 0 (20,000) 878,836 858,836 

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

Budget Adjustments 

FY 2021 Adjustments 

Program Increases............................................................+$181,594,000 / +0 FTE

Currency Program +161,594,000 / +0 FTE 

This increase is to reflect the currency order commitment increase from 6.8B to 7.6B notes. 

Currency Paper Production COOP +$20,000,000 / +0 FTE 

This increase is for the one-time COOP improvement to the currency paper production. 

Maintaining Current Levels (MCLs) ......................................................+$16,423,000 / +0 FTE 

Pay Annualization (1.0%) +$726,000 / +0 FTE 

Funds are required for annualization of the January 2021 1.0% average pay raise. 

 
Pay Raise (2.7% in 2022) +$5,894,000 / +0 FTE 

Funds are required for a 2.7% average pay raise in January 2022. 

FERS Contribution Increase +$2,010,000 / +0 FTE 

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

effective FY 2022. 

Non-Pay +$7,793,000 / +0 FTE 

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

equipment. 

FY 2022 Program Decreases.................................................................... -$45,247,000 / -0 FTE 

Currency Paper Production COOP -$20,000,000 / -0 FTE 

This is a reduction for the FY21 COOP improvement to the currency paper production. 

Facilities Support -$4,890, 000 /-0 FTE 

WCF vault automated racking system and shipping roof replacement. 

Manufacturing Support -$10,512,000 /-0 FTE 

Barcoding and RFID implementation and inspection equipment. 

WCF Building Expansion -$3,770,000 / -0 FTE 

Construction will be completed in FY 2022. 

Security and Accountability -$6,075,000 / -0 FTE 

Radio system upgrade for both facilities. 

FY 2022 Program Increases...................................................................+$904,083,000 / +0 FTE 

Washington DC Replacement Facility +867,108,000 / +0 FTE 

This amount reflects the increase of planned obligation for the new DC facility for FY 2022. 

Retooling +$36,975,000 / +0 FTE 

This increase reflects the planned capital spending for Physical Vapor Deposition chrome 

system, offset press replacement and acquisition of additional Large Examining and Printing 

Equipment (LEPEs) and upgrade of existing LEPEs now in production. (LEPEs combine three 

previously separate processes of inspection, printing serial numbers and seals and final 

packaging). 

Legislative Proposals 

BEP has no legislative proposals. 

 
Performance Highlights 

Budget 

Activity 

 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 

Performance Measure Actual Actual Actual Target Target 

Manufacturing Currency Notes Delivered Returned Due to 

Defects (Parts per Million) .0031ppm .09ppm .02ppm <1ppm <1ppm 

Manufacturing FEVS Satisfaction 74 74 74 >65% >65% 

Manufacturing Lost Time Accident Rate per 100 Employees 0.781 1.48 1.01 <1.8 <1.8 

Manufacturing Manufacturing Costs For Currency (Dollar 

Costs Per Thousand Notes Produced) $47.41 $50.33 $56.19 $64.33 $65.00 

1

 Lost Time Accident Rates are adjusted following adjudication of accident reports received during each fiscal year. The FY 2018 actual shown 

reflects this adjustment. 

Description of Performance 

($1,944,253,000 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 2020 due to improved quality assurance processes with an 

actual result of 0.02 ppm notes returned due to a defect. BEP’s target for this performance metric will 

be held constant at <1 ppm for FY 2021 and FY 2022. 

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. In FY 2021 and 2022, 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 2020 Lost Time Accident rate was at 1.01 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, avoiding hazards, and being a Director’s priority. 

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. A 1.8 case rate represents approximately one injury per facility per month, 

which is quite low. Therefore, BEP’s target will be held at 1.80 cases per 100 employees for FY 

2021 and FY 2022.

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

efficiency, and capacity utilization goals. The final FY 2020 cost was $56.19 per 1,000 notes 
produced. BEP’s target for this performance metric in FY 2021 is $64.33. The target for FY 2022 is 

set at $65.00 per 1,000 notes produced and will be refined once the currency order is received. 

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 2020, BEP met its target of delivering 100 

percent of the currency notes ordered, including a 20% increase mid-year due to increased demand 

during the COVID-19 pandemic. In FY 2021, BEP has committed to deliver 7.6B notes. 

Additionally, the FRB will accept any additional production up to a total of 9.6B notes. Should 

production exceed the commitment of 7.6B notes, the Yearly Currency Order figure reported will be 

greater than 100% (applicable to FY 2021 only).