Department of the Treasury

Bureau of Engraving and 

Printing

Congressional Justification 

for Appropriations and 

Annual Performance 

Report and Plan

FY 2018 
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Table of Contents

Section I – Purpose........................................................................................................................ 3

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

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

1.1 – Appropriations Detail Table .............................................................................................. 5

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

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

1.3 – Operating Levels Table .................................................................................................. 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 ...................................................................... 9

2.1 Manufacturing Resources and Measures.............................................................................. 9

Manufacturing Budget and Performance .................................................................................. 10

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

A – Summary of Capital Investments....................................................................................... 11
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Section I – Purpose

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. 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. 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 provides technical assistance, advice, and some production services to other Federal 

agencies in the development of security documents that require counterfeit deterrent features due 

to their innate value or other characteristics. Other activities at the 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. 

The BEP’s FY 2018 request funds the following projects: 

1. Banknote Design and Development: In 2018, BEP will continue working with the Federal 

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

develop future currency designs for the next family of redesigned notes that will enhance and 

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

consideration, the primary purpose for redesigning currency is to address current and 

potential counterfeiting threats.

2. Meaningful Access: Work continues in FY 2018 on redesigning currency to better assist 

domestic and international users, including the blind and visually impaired, with 

denominating U.S. currency notes. The three approved methods BEP is pursuing include the 

continued use of large, high-contrast numerals and different colors on currency notes; 

implementation of a U.S. Currency Reader Program that distributes iBill® currency readers 

(electronic assistive devices that identify a note’s value and communicates it to the user) at 

no cost to those individuals; and the pursuit of a Raised Tactile Feature for future currency 

notes. In 2013, the ACD recommended that the $10 note be the first denomination 

redesigned based on current and potential counterfeiting threats, amongst other factors. 

Throughout 2018, the testing and refinement of features will continue to determine and shape 

which processes and potential features work best at the high production volumes needed for 

U.S. currency.
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3. Retooling: BEP is in the process of a multi-year effort to retool BEP’s manufacturing 

processes with state-of–the-art intaglio printing presses, electronic inspection systems, and 

finishing equipment. In order to ensure that the BEP will meet the yearly currency order, the 

FRB and BEP developed and established short, medium, and long-term strategic equipment 

replacement plan for the U.S. Currency Program. The successful implementation of this 

advanced technology will improve productivity, reduce environmental impact, and enhance 

counterfeit deterrence of U.S. currency.

4. BEP Workforce: In 2015, the BEP developed a FY 2016 – 2020 Human Capital Strategic 

Plan outlined priority goals and initiatives to assess and drive meaningful workforce 

improvements in leadership and career development, knowledge management, training, and 

STEM (Science, Technology, Engineering and Mathematics) hiring and development over 

the next five years. Throughout 2018, BEP 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.

5. Currency Quality Assurance Program: BEP has partnered with the FRB to reinvent its 

quality management program based on the best practices of leading manufacturers. The 

BEP, in collaboration with its stakeholders, developed a robust CQA program that began in 

2014 and will continue to mature in 2018. BEP now builds quality into production 

processes. Every BEP work activity is aligned and will be resourced to support this program 

that focuses on every step of the supply chain from raw material, through the manufacturing 

process, to final packaging and delivery. CQA reaches into nearly every “corner” of the 

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.

6. New International Organization for Standardization (ISO) requirements: ISO has 

published updated standards that the BEP must follow to maintain certification. The updated 

ISO 14001:2015 requirements will allow BEP to manage an integrated and proactive 

Environment Management System (EMS) that will better manage the activities on the 

environment and demonstrate sound environmental management. In order to pass 

recertification, BEP must align its Quality Management System (QMS) to the ISO 9001:2015 

standard and its EMS to the ISO 14001:2015 standard no later than September 2018. The 

updated ISO 9001:2015 requirements include a significant expansion of the BEP QMS, with 

the inclusion of business processes that support currency manufacturing. This includes 

processes that affect people, infrastructure, as well as the operational environment of 

currency manufacturing. The updated ISO 14001:2015 requirements will allow BEP to 

manage an integrated and proactive EMS that will better manage the effects of BEP activities 

on the environment and demonstrate sound environmental management.
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7. Replacement Production Facility: BEP’s current Washington, DC facility has an aging and

outdated infrastructure with multiple floors and wings, which drives up costs and adversely 

impacts quality. BEP needs to move forward to upgrade its facility in FY 2018, in order to 

be prepared to issue redesigned banknotes. BEP could renovate the existing facility, which 

would be very costly and inefficient ($15M more in FY 2018 alone), or could purchase land 

and construct a new facility, which would a more efficient with less costs. However, under 

current law, BEP does not have the authority to purchase land or a new facility. For 2018, 

BEP is requesting legislative authority to purchase land and construct a new more efficient 

currency production facility in the National Capital Region with a goal of reducing the 

Federal footprint. The FRB supports the construction of a new facility. Renovation will cost 

approximately $1.8 billion, $700 million more than the cost of purchasing and constructing a 

new facility and would not achieve any of the projected efficiencies (28 percent less space 

and a $38 million reduction in annual operating costs). With the new authority, construction 

of the new production facility would be completed by 2022 and the new facility fully 

operational by the end of 2026.

1.1 – Appropriations Detail Table

Dollars in Thousands

Bureau of Engraving and Printing

Offsetting Colections

 FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT

Revenue/ Offsetting Collections:

Federal Reserve Notes $644,035 $801,335 $834,484 $33,149 4.14%

Other Security Products 4,000 5,000 5,000 - 0.00%

Total Revenue/Offsetting Collections $648,035 $806,335 $839,484 $33,149 4.11%

Expenses/Obligations:

Direct Manufacturing 754 $446,840 724 $486,840 724 $462,266 0 ($24,574) 0.00% -5.05%

Indirect Manufacturing 1,064 201,195 1,118 319,495 1,118 377,218 0 57,723 0.00% 18.07%

Total Expenses/Obligations 1,818 $648,035 1,842 $806,335 1,842 $839,484 0 $33,149 0.00% 4.11%

Net Results 0 0 0 0 NA

FY 2016 FY 2017 FY 2018 FY 2017 to FY 2018

Actual Estimated Estimted $ Change % Change
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1.2 – Budget Adjustments Table

C – Budget Increases and Decreases Description

Maintaining Current Levels (MCLs) ....................................................+$10,823,000 / +0 FTE

Pay-Raise +$3,528,000 / +0 FTE 

Funds are required for the proposed January 2018 pay-raise. 

Pay Annualization +$1,293,000 / +0 FTE 

Funds are required for annualization of the January 2017 pay-raise.

Non-Pay +$6,002,000 / +0 FTE 

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

Program Decreases ...................................................................................-$41,674,000 / -0 FTE

Production Efficiency -$10,823,000 / -0 FTE 

BEP will strategically prioritize and perform critical mission requirements to lower production 

costs to offset increases in MCLs.

Currency Reader -$20,000,000 / -0 FTE 

As the U.S. Currency Reader Program matures and downloadable applications and image 

recognition technology becomes more commonplace, the BEP expects the demand for currency 

readers to be reduced in FY 2018.

Dollar in Thousands

Bereau of Engraving and Printing FTE Materials Operating & 

Capital Total

FY 2017 Estimated 1,842 $300,000 $506,335 $806,335 

Changes to Base:

Maintaining Current Levels (MCLs):

Pay Raise $3,528 $3,528 

Pay Annualization 1,293 1,293

Non-Pay 6,002 6,002

Subtotal Changes to Base 10,823 10,823

Total FY 2018 Base 1,842 $300,000 $517,158 $817,158 

Program Changes:

Program Decrease ($10,851) ($30,823) ($41,674)

Production Efficiency (10,823) (10,823)

Currency Readers (20,000) (20,000)

Materials (10,851) (10,851)

Program Increase $0 $64,000 $64,000 

DCF Production Facility Replacement 64,000 64,000 

Total FY 2018 Estimated 1,842 $289,149 $550,335 $839,484 
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Materials -$10,851,000 / -0 FTE 

Reduction in materials due to program reduction, increased 50 subject printing coupled with 

anticipated reduction in spoilage. 

Program Increases ...................................................................................+$64,000,000 / +0 FTE

Production Facility Replacement +$64,000,000 / +0 FTE

In 2018 BEP requests statutory authority to purchase land and construct a new and more efficient 

currency production facility in the National Capital Region. Absent legislative authority to 

purchase land and construct a new, smaller, more efficient currency production facility, an

additional $15 million would be required in FY 2018 to award needed renovation contracts in 

order to ensure BEP’s ability to meet its mission. 
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1.3 – Operating Levels Table

Dollars in Thousands

Bureau of Engraving and Printing FY 2016 FY 2017 FY 2018

Object Classification Actual Estimated Estimated

11.1 - Full-time permanent $176,236 $177,560 $181,256

11.3 – Other than Full-time Permanent Positions 0 150 150

11.5 - Other personnel compensation 19,117 2,050 2,093

11.6 - Overtime 0 15,000 15,000

11.9 - Personnel Compensation (Total) $195,353 $194,760 $198,499

12.0 - Personnel benefits 51,396 52,000 53,082

Total Personnel and Compensation Benefits $246,749 $246,760 $251,581

21.0 - Travel and transportation of persons $1,311 $1,350 $1,800

22.0 - Transportation of things 189 250 250

23.1 - Rental payments to GSA 1,398 2,000 2,000

23.2 Rent Payments to Others 0 1,000 1,000

23.3 - Communication, utilities, and misc charges 10,313 14,000 14,000

24.0 - Printing and reproduction 350 250 250

25.1 - Advisory and assistance services 2,272 3,500 4,150

25.2 - Other services 47,827 90,865 133,078

25.3 - Other purchaes of goods and services from Government Accounts 241 0 0

25.4 - Operation & Maintenance of Facilities 0 8,100 8,950

25.5 - Research & Development Contracts 0 7,000 15,000

25.7 - Operation & Mantenance of Equipment 0 11,900 12,000

26.0 - Supplies and materials 295,259 300,000 249,815

31.0 – Equipment 41,951 119,200 145,450

41.0 – Insurance claims and indemnities 0 160 160

42.0 – Insurance claims and indemnities 175 0 0

Total Non-Personnel $401,286 $559,575 $587,903

Total Budgetary Resources $648,035 $806,335 $839,484

FTE 1,818 1,842 1,842

D – Appropriations Language and Explanation of Changes

The BEP receives no appropriated funds from Congress.

E – Legislative Proposals

In 2018 BEP requests statutory authority to purchase land and construct a new and more efficient 

currency production facility in the National Capital Region. 

The FRB supports this project. Alternatively, BEP must begin the renovation of the existing DC 

Main and Annex Buildings in FY 2018. Renovation will cost approximately $1.8 billion, $700 

million more than the cost of purchasing and constructing a new facility, and would have none of 

the projected efficiencies (28 percent less space and a $38 million reduction in annual operating 

costs). 
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Section II – Annual Performance Plan and Report

A – Strategic Alignment

To develop and produce United States currency notes, trusted worldwide. 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. The FY 2018-2022 Strategic Plan 

is currently under development and BEP will updated its Annual Performance Plan in the 

FY 2019 Budget.

U.S. currency is used globally and as its designer and manufacturer, BEP needs to achieve and 

maintain best-in-class practices for U.S. currency to be accepted worldwide. Working closely 

with our partners in the U.S. Currency Program, BEP looks forward to developing 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 has committed to stay ahead of increasingly sophisticated counterfeiters. 

B – Budget and Performance by Budget Activity

2.1 Manufacturing Resources and Measures

Manufacturing Activity

Resource Level FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

Actual Actual Actual Actual Actual Estimated Estimated

Expense/Obligations $630,000 $624,243 $733,208 $778,592 $648,035 $806,355 $839,484

Budget Activity 

Total

$630,000 $624,243 $733,208 $778,592 $648,035 $806,355 $839,484

FTE 1,872 1,890 1,845 1,780 1,818 1,842 1,842

Measure FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2016 FY 2017 FY 2018 FY 2011 -

Actual Actual Actual Actual Actual Target Target Target FY 2016

Trend

Best Places to Work in 

Federal Government 

Ranking

178 47 51 74 97 99 99 99

Lost Time Accident Rate 

per 100 Employees

1.9 1.63 1.73 1.65 1.77 1.80 1.80 1.80

Manufacturing Costs For 

Currency (Dollar Costs Per 

Thousand Notes 

Produced)

43.34 50.45 44.22 42.35 44.25 50.0 50.0 50.0

Percent of Currency Notes 

Delivered Returned Due to 

Defects

.0001 .466 .00001 .0000003 .0000003 .00001 .00001 .00001

Key: DISC - Discontinued, B - Baseline
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Manufacturing Budget and Performance

($839,484,000 from reimbursable resources):

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 costs depends on BEP’s ability to meet spoilage, 

efficiency, and capacity utilization goals. In 2016 the cost of manufacturing was lower than 

anticipated; the actual result was $44.25 per 1,000 notes produced against a target of $50.00. 

BEP’s target for this performance metric, in both 2017 and 2018, is set at $50.00 per 1,000 notes 

produced.

The percent of currency notes returned due to defects is an indicator of the BEP’s ability to 

provide a quality product. BEP’s FY 2016 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 2017 and 2018.

BEP’s ranking in the government-wide Best Place to Work in the Federal Government is based 

on the results of the Partnership for Public Service data on three questions in the Federal 

Employee Viewpoint Survey (FEVS). BEP’s 2016 rank was 97 out of 305. BEP will continue 

to target improving its ranking and strives to be in the upper quartile of Federal agencies

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

and illnesses in the workplace. BEP’s 2016 Lost Time Accident rate was at 1.77 cases per 100 

employees, surpassing the target of 1.80 cases per 100 employees. The BEP 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 will be held constant at 

1.80 cases per 100 employees for FY 2017 and FY 2018.
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Section III – Additional Information

A – Summary of Capital Investments

The BEP capital investment strategy is comprised of several broad investment categories, with 

more specific smaller projects in each category. 

The BEP’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. BEP’s retooling project replaces older, fully depreciated 

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

and cost effective and efficient in meeting customer requirements for the production of currency 

notes. In addition, the BEP is focused on building the capability to produce new currency 

designs with tactile features to provide meaningful access to currency for the blind and visually 

impaired.

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

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

Business service provider), and the Treasury Learning Management System.

BEP’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