Department of the Treasury – Budget in Brief 

Bureau of Engraving and Printing 

Program Summary by Budget Activity 

Dollars in Thousands

 FY 2017 FY 2018 FY 2019 FY 2018 TO FY 2019

Budget Activity Actual Estimated Estimated $ Change % Change

Manufacturing $712,074 $839,484 $896,430 56,946 6,78%

Total Cost of Operations $712,074 $839,484 $896,430 $56,946 6.78%

Total FTE 1,818 1,842 1,836 (6) -0.33%

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 2019 budget funds the following 

projects: 

Increasing the Department of the 

Treasury’s Efficiency and Effectiveness by 

Streamlining Operations: BEP and the 

United States Mint will streamline certain 

functions by migrating BEP’s online sales and 

marketing presence to the Mint’s recently 

modernized E-Commerce infrastructure and 

services platform and centrally coordinating 

non-IT procurements, creating economies of 

scale and reducing expenses. In addition, the 

Budget requests the authority for BEP to print 

security documents for states. 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. 

Banknote Design and Development: In 

FY 2019, BEP will continue working with the 

Federal Government’s Advanced Counterfeit 

Deterrent 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. 

Meaningful Access: BEP continues its work 

to ensure that U.S. currency notes are 

accessible for domestic and international users, 

including the blind and visually impaired. 

Retooling: BEP is in the process of a multiyear effort to retool its manufacturing 

processes with state-of–the-art intaglio 

printing presses, electronic inspection systems 

and finishing equipment. In order to ensure 

that BEP will meet the yearly currency order, 

the Federal Reserve Board (FRB) and BEP 

developed and established short, medium and 

long-term strategic equipment replacement 

plans for the U.S. Currency Program. 

 

BEP Workforce: Throughout FY 2019, BEP 

will continue to develop, execute, and 

communicate Employee Engagement Plans 

and the Federal Employee Viewpoint Survey 

annual results. In addition to implementing 

BEP Human Capital Plan initiatives, BEP will 

continue to fill personnel gaps in needed 

Science, Technology, Engineering and 

Mathematics skill sets. BEP is also adding 

resources in technology development and 

feature testing areas. 

 

Currency Quality Assurance (CQA) 

Program: BEP has partnered with the FRB to 

reinvent its quality management program 

based on the best practices of leading 
Department of the Treasury – Budget in Brief 

manufacturers. In collaboration with its 

stakeholders, BEP developed a robust CQA 

program that began in 2014 and will continue 

to mature in 2019. BEP now builds quality 

into production processes. 

New International Organization for 

Standardization (ISO) Requirements: ISO 

has published updated standards that BEP 

must follow to maintain certification. To pass 

recertification, BEP must align its Quality 

Management System to the ISO 9001:2015 

standard and its Environment Management 

System to the ISO 14001:2015 standard no 

later than September 2018. 

Replacement DC Production Facility 

(DCF): 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 of the currency. BEP requests 

legislative authority to purchase land and 

construct a new, smaller, more efficient 

currency production facility in the National 

Capital Region. The FRB supports this 

project. The proposal would save $579 

million over 10 years, with an additional $22 

million in savings in 2029, 2020 and 2031. 

With a new facility, BEP would be able to 

reduce its space by 28 percent and reduce its 

annual operating costs by $38 million. 

Alternately BEP would renovate the existing 

Main and Annex Buildings to ensure its ability 

to meet its mission. 

Western Currency Facility Expansion:

Producing the next family of redesigned notes 

requires that BEP purchase and install new 

equipment to support the new designs. The 

expansion will provide the space and 

infrastructure necessary to successfully meet 

the new production requirements. 

BEP FY 2019 Budget Highlights 

Dollars in Thousands 

Bureau of Engraving and Printing FTE Materials Operating & 

Capital Total

FY 2018 Estimated 1,842 $289,149 $550,335 $839,484

Changes to Base 

Maintaining Current Levels (MCLs) $7,957 $7,957 

 Pay Annualization 1,195 1,195

 Non-Pay 6,762 6,762

Subtotal Changes to Base 7,957 7,957

Total FY 2019 Base 1,842 $289,149 $558,292 $847,441 

Program Changes 

 Program Decreases (6) ($9,667) ($5,140) ($14,807)

 Implement Single Note Inspection for $100 and $20 Notes (9,667) (533) (10,200)

 50-subject $5 Note Production Begins (3,707) (3,707)

 Authorize and Implement Phased Retirement (5) (700) (700)

 Consolidate Transactional HR Services (1) (200) (200)

 Program Increases 64,000 64,000

 DC Production Facility Replacement 16,820 16,820 

 Western Currency Facility Expansion 46,976 46,976 

Subtotal Program Changes (6) (9,667) 58,656 48,989 

Total FY 2019 Estimated 1,836 $279,482 $616,948 $896,430

 
Department of the Treasury – Budget in Brief 

FY 2019 Budget Adjustments 

Adjustment to Estimates 

Maintaining Current Level (MCLs) 

Pay Annualization +$1,195,000 / +0 FTE 

Funds are required for annualization of the 

January 2018 pay-raise.

Non-Pay +$6,762,000 / +0 FTE 

Funds are required for inflation adjustments in 

non-labor expenses such as GSA rent, 

postage, supplies and equipment. 

Implement Single Note Inspection for $100 

and 200 Notes -$10,200,000 / -0 FTE 

BEP is implementing this additional 

production process that will increase 

manufacturing efficiencies.

50 Subject $5 Note Production Begins 

-$3,707,000 / -0 FTE 

Implementing 50 Subject $5 note production 

will improve manufacturing efficiencies and 

increase productivity. 

Authorize and Implement Phased 

Retirement -$700,000 / -5 FTE 

Offering a Phased Retirement program at BEP 

will allow managers to provide mentoring 

opportunities for employees while increasing 

access to the decades of institutional 

knowledge and experience that these 

experienced employees can provide. 

Consolidate Transactional HR Services -

$200,000 / -1 FTE 

BEP will provide employees with standardized 

and centralized human resources (HR) 

processes by consolidating transactional HR 

services with a Shared Service Provider. 

DC Production Facility Replacement 

+$16,820,000 / +0 FTE 

These funds will be used to develop the 

requirements to support the new facility 

project. 

Western Currency Facility Expansion 

+$46,976,000 / +0 FTE 

Expansion of the Western Currency Facility is 

needed to meet redesign currency program 

requirements. 

Legislative Proposals 

BEP requests authority to print security 

documents such as birth, marriage, and death 

certificates for states. Many states are unable 

to find an American printing firm to produce 

such documents. These states are turning to 

foreign companies or lowering their security 

standards. 

BEP also requests legislative authority to 

purchase land and construct a new, smaller, 

more efficient currency production facility in 

the National Capital Region with a goal of 

reducing the federal footprint. The FRB 

supports this project. Without this new 

authority, BEP would have to renovate the 

existing Main and Annex Buildings to 

accommodate the state-of-the-art equipment 

necessary to produce the next family of 

redesigned notes. 

 
Department of the Treasury – Budget in Brief 

BEP Performance Highlights 

Budget Activity

Performance Measure FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

Actual Actual Actual Target Target 

Manufacturing Manufacturing Costs For Currency (Dollar 

Costs Per Thousand Notes Produced) 

42.35 44.25 43.58 50.0 48.0

Manufacturing Manufacturing Costs For Currency (Dollar 

Costs Per Thousand Notes Produced) 42.35 44.25 43.58 50.0 48.0

Manufacturing Percent of Currency Notes Delivered 

Returned Due to Defects 0.0000003 0.0000003 0.0000008 0.0001 DISC

Manufacturing Currency Notes Delivered Returned Due 

to Defects (parts per million) N/A N/A N/A N/A <1 ppm

Manufacturing Best Places to Work in Federal 

Government Ranking 74 97 38 Upper Quartile 

Upper 

Quartile 

Manufacturing Lost Time Accident Rate per 100 

Employees 1.65 1.77 1.60 1.80 1.90

Key: DISC – Discontinued 

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. The measure is based 

on contracted price factors, productivity 

improvements and the mix of denominations 

ordered. Actual performance against standard 

cost depends on BEP’s ability to meet 

spoilage, efficiency and capacity utilization 

goals. In FY 2017 the cost of manufacturing 

was lower than anticipated; the actual result 

realized was $43.58 per 1,000 notes produced 

against a target of $48.00. BEP’s target for 

this performance metric in FY 2018 and 

FY 2019 is $48.00 per 1,000 notes produced. 

The Percent of Currency Notes Returned Due 

to Defects is an indicator of BEP’s ability to 

provide a quality product. BEP’s FY 2017 

target for this performance metric was 0.0001 

percent, and the actual result realized for this 

measure was 0.0000008 percent. This 

performance indicator will be replaced in FY 

2019 with Currency Notes Returned Due to 

Defects (parts per million (ppm)). BEP’s 

target for this performance metric will be held 

constant at <1 ppm for FY 2018 and FY 2019. 

BEP’s Best Places to Work in the Federal 

Government Ranking is based on the results of 

the Partnership for Public Service data on 

three questions in the Federal Employee 

Viewpoint Survey. BEP’s FY 2017 ranking 

was 38 out of 150. The Partnership will issue 

updated rankings early in FY 2018 including 

more agency components. BEP will continue 

to target an improvement and strives to be in 

the upper quartile in rank. 

The Lost Time Accident Rate per 100 

employees measures BEP’s ability to reduce 

injuries and illnesses in the workplace. BEP’s 

FY 2017 Lost Time Accident rate was at 1.60 

cases per 100 employees, lower than the target 

of 1.80 cases per 100 employees. 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 at 1.80 cases per 100 employees 

for FY 2018 and will increase to 1.90 cases 

per 100 employees in FY 2019.