Department of the Treasury – Budget in Brief

Bureau of Engraving and Printing

Program Summary by Budget Activity

Dollars in Thousands

 FY 2016 FY 2017 FY 2018 FY 2017 TO FY 2018

Budget Activity Actual Estimated Estimated $ Change % Change

Manufacturing $648,035 $806,355 $839,484 $33,149 4.11%

Total Cost of Operations $648,035 $806,355 $839,484 $33,149 4.11%

FTE 1,818 1,842 1,842 0 NA

Summary

The mission of the Bureau of Engraving and 

Printing (BEP) is to develop and produce 

United States currency notes, trusted 

worldwide. 

The BEP’s FY 2018 request funds the 

following projects: 

Banknote Design and Development: In 2018, 

BEP will continue working with the 

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: Work continues in 

FY 2018 on the goal of redesigning currency 

to better assist domestic and international 

users, including the blind and visually 

impaired, with denominating U.S. currency 

notes. 

Retooling: BEP is in the process of a multiyear 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 Federal Reserve Board (FRB) and 

BEP developed and established short, medium, 

and long-term strategic equipment replacement 

plan for the U.S. Currency Program. 

BEP Workforce: Throughout 2018, the 

Bureau will continue to develop, execute, and 

communicate the results of Employee 

Engagement Plans and the Federal Employee 

Viewpoint Survey annual results. In addition 

to implementing BEP Human Capital Plan 

initiatives, efforts will continue to fill gaps in 

needed Science, Technology, Engineering and 

Mathematics skill sets to support our Currency 

Quality Assurance efforts in addition to 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 

manufacturers. The BEP, in collaboration 

with its stakeholders, developed a robust CQA 

program that began in 2014 and will continue 

to mature in 2018. This reinvention has 

moved BEP to a proactive approach of 

building quality into production processes. 

New International Organization for 

Standardization (ISO) requirements: ISO 

has published updated standards that the BEP 

must adhere to in order to maintain 

certification. In order 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. For 2018, BEP is requesting statutory 

authority to purchase land and construct a new

more efficient currency production facility in 

the National Capital Region. The FRB, which 
Department of the Treasury – Budget in Brief

would pay for the construction of a new 

National Capital Region production facility, 

supports this project. Alternately, BEP must

begin the renovation of the existing Main and 

Annex Buildings to ensure its ability to meet 

its mission. Renovation will cost $1.8 billion, 

approximately $700 million more than the 

purchase and construction of a new facility

and with none of the projected efficiencies (28 

percent less space and a $38 million reduction 

in annual operating costs). 

BEP FY 2018 Budget Highlights

Dollars in Thousands

Bureau Name FTE Materials Operating & 

Capital Total

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

Changes to Base:

Maintaining Current Levels (MCLs): $10,823 $10,823

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 Decreases: ($10,851) ($30,823) ($41,674)

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

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

 Materials (10,851) (10,851)

 Program Increases $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

FY 2018 Budget Adjustments

Adjustment to Estimates

Maintaining Current Level (MCLs)

Pay-Raise +$3,528,000

Funds are required for the proposed January 

2018 pay-raise.

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

Funds are required for the annualization of the 

2017 pay-raise.

Non-Pay +$6,002,000

Funds are required for inflation adjustments in 

non-labor expenses such as GSA rent 

adjustments postage, supplies, and equipment.

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.

Program Decreases

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

As the Currency Reader distribution program 

matures and downloadable applications and 

image recognition technology becomes more 

commonplace, BEP expects demand for 

currency readers to decline in FY 2018.

Materials -$10,851,000 / -0 FTE 

Materials reduction: Reduction in materials 

due to program reduction, increased 50 subject 

printing coupled with anticipated reduction in 

spoilage. 

Program Increase

DCF Production Facility Replacement 

+$64,000,000 / +0 FTE

Funding is requested in FY 2018 to award 

replacement facility build design service 

contracts. 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.
Department of the Treasury – Budget in Brief

Legislative Proposals

In 2018 BEP requests statutory authority to 

purchase land and construct a new 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).

BEP Performance Highlights

FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

FY 2014 –

FY 2016

Budget Activity Performance Measure Actual Actual Actual Target Target Trend

Manufacturing Percent of Currency Notes Delivered 

Returned Due to Defects 0.00001 .0000003 .0000003 0.0001 0.0001

Manufacturing Best Places to Work in Federal 

Government Ranking 51 74 97 99 99

Manufacturing Lost Time Accident Rate per 100 

Employees 1.73 1.65 1.77 1.80 1.80

Manufacturing Manufacturing Costs For Currency (Dollar 

Costs Per Thousand Notes Produced) 44.22 42.35 44.25 50.0 50.0

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, as well as the mix of

denominations ordered. Actual performance 

against standard cost 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 compared to 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 was .0001 percent, and the actual result 

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 Best Place to Work in the 

Federal Government ranking is based on the 

Partnership for Public Service data on three 

questions in the Federal Employee Viewpoint 

Survey. 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 Bureau’s ability to 

reduce injuries and illnesses in the workplace. 

BEP’s 2016 lost time accident rate was 1.77

cases compared to the target of 1.80 cases. 

The Bureau 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 per 100 

employees for FY 2017 and FY 2018.