Department of the Treasury 

Bureau of Engraving and 

Printing 

Congressional Budget 

Justification and Annual 

Performance Plan and Report 

FY 2021 
2 

Table of Contents 

Section I – Budget Request........................................................................................................... 3

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

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

1.1 – Resources Detail Table ...................................................................................................... 5

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

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

1.3 – Object Classification (Schedule O) Obligations ................................................................ 9

D – Appropriations Language and Explanation of Changes ...................................................... 9

E – Legislative Proposals ............................................................................................................ 9

Section II – Annual Performance Plan and Report ................................................................. 10

A – Strategic Alignment ........................................................................................................... 10

B – Budget and Performance by Budget Activity .................................................................... 10

2.1 – Manufacturing Resources and Measures ......................................................................... 10

Manufacturing Budget and Performance .................................................................................. 11

C – Changes in Performance Measures .................................................................................... 11

D – Evidence-Building Activity ............................................................................................... 12

Section III – Additional Information ........................................................................................ 12

A – Summary of Capital Investments ....................................................................................... 12
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Section I – Budget Request 

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. BEP 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 BEP 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 

annual discretionary appropriations. 

BEP 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 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. BEP supports 

Treasury’s Strategic Goal 1: Boost U.S. Economic Growth and Strategic Goal 5: Achieve 

Operational Excellence. 

BEP’s FY 2021 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 2019 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 the support from the U.S. Army Corps of 

Engineers. The formal transfer from USDA to Treasury is anticipated in early 2020. 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 FY 2020, the budget includes about $5 million for the remaining site evaluation 

tasks and relocation of several onsite USDA facilities that must be removed prior to the initiation 

of onsite BEP construction activities. Also anticipated in FY 2021 is the initiation of early site 

development construction activities estimated at $30 million to include site grading, roadway 

improvements, and utility system relocation to support the BEP development.

2. Western Currency Facility Expansion: BEP began expanding the Western Currency Facility in 

(WCF) 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. 
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Unforeseen weather-related delays caused the project to fall 4 to 6 months behind schedule. The 

expansion work is expected to be completed in FY 2021 with contract close out occurring in FY 

2022. The FY 2021 projected cost for the WCF is $5 million. 

3. Banknote Design and Development: In FY 2021, BEP will continue working 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. In FY 

2020/2021, the major retooling initiatives include:

 Upgrade and completely automate the $100 finishing line to integrate Single Note 

Inspection technology. The capability to inspect single notes provides a significant 

improvement over BEP’s traditional sheet inspection process. Spoilage will be 

reduced significantly, and processing efficiency will increase resulting in cost savings. 

 Replace the existing hexavalent chromium plating line with a Physical Vapor 

Deposition Chrome system which has known environmental benefits and potential 

plate life improvement benefits. 

 Upgrade plate-making with Computer-to-Plate technology. Computer generated digital 

image transferred directly to a printing plate. This technology improves note image 

quality and plate making efficiency. 

 Develop a Crease Detection System to detect paper creases and improve print quality. 

 Acquire new security feature equipment to support production of the next generation 

of currency. 

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

initiatives, while filling personnel gaps in needed STEM and cybersecurity skill sets. BEP has 

proactively continued to fill the gaps in the STEM and cybersecurity positions in FY 2020 by 

utilizing a variety of hiring authorities to onboard five new hires in the first quarter. 

Additionally, the BEP attended two Recruit Military events in the D.C. and Dallas/Ft. Worth 

locations in November 2019 to attract potential veteran candidates. As of January 9, 2020, 

twelve STEM selectees are pending pre-employment hiring reviews and entrance on duty. In 

terms of Employee Engagement, the Office of Human Resources made deliberate efforts to 

assess and track all engagement related activities and metrics including: implementation of a 

“Core Values” program; development and implementation of a Collaborative Communication 

Network; development of an Employee Appreciation program; and the establishment of a BEP 
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Community Spirit program that will take place during FY 2020. Throughout FY 2021, BEP will 

continue to develop, execute, and communicate the results of Employee Engagement Plans and 

the annual Federal Employee Viewpoint Survey (FEVS) results. 

1.1 – Resources Detail Table 

Dollars in Thousands FY 2019 FY 2020 FY 2021 FY 2020 to FY 2021 

Budgetary Resources Actual Estimate Estimate % Change 

Revenue/Offsetting Collections FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT 

Currency Program 1,727 $944,993 1,804 $810,701 1,863 $878,400 3.27% 8.35% 

Other Programs 0 $10,219 0 $9,000 0 $9,000 0 0.00% 

Total Revenue/Offsetting Collections 1,727 $955,212 1,804 $819,701 1,863 $887,400 3.27% 8.26%

Expenses/Obligations 

Manufacturing

 Direct Manufacturing 817 451,661 853 $385,259 881 $417,078 3.28% 8.26%

 Indirect Manufacturing Support 910 503,551 951 $434,442 982 $470,322 3.26% 8.26% 

Total Expenses/Obligations 1,727 955,212 1,804 $819,701 1,863 $887,400 3.27% 8.26%

Net Results 0 0 0 0 0 0 NA NA

 
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 1.2 – Budget Adjustments Table 

Dollars in Thousands 

 FTE Materials Operating & 

Capital Total 

FY 2020 Original Estimate 1,863 $244,051 $642,836 $886,887 

Program Changes 

Program Decreases: (59) ($50,000) ($53,236) ($103,236) 

 Currency Program decrease (7.0B to 5.2B) 0 ($50,000) $0 ($50,000) 

 Washington D.C. Replacement Facility 0 $0 ($44,950) ($44,950) 

 Hiring Lag (59) $0 ($8,286) ($8,286) 

Program Increases: 0 $0 $36,050 $36,050 

 R&D (New Note Features) 0 $0 $19,000 $19,000 

 Support Services Contract 0 $0 $3,500 $3,500 

 Pay Raise (3.1% average pay raise) 0 $0 $7,700 $7,700 

 WCF Expansion 0 $0 $5,850 $5,850 

Subtotal Program Changes (59) (50,000) ($17,186) ($67,186) 

FY 2020 Revised Estimate 1,804 $194,051 $625,650 $819,701 

Changes to Base 

Maintaining Current Levels (MCLs) 0 $0 $14,686 $14,686 

Pay Annualization (2020 3.1% average pay raise) 0 $0 $1,998 $1,998 

Pay Raise (1.0% average pay raise) 0 $0 $1,948 $1,948 

FERS Contribution Increase 0 $0 $3,383 $3,383 

Non-Pay 0 $0 $7,357 $7,357 

Efficiency Savings 0 $0 ($5,000) ($5,000)

Overtime Reduction 0 $0 ($5,000) ($5,000) 

Subtotal Changes to Base 0 $0 $9,686 $9,686 

FY 2021 Current Services 1,804 $194,051 $635,336 $829,387 

Program Changes 

Program Decreases: 0 $0 ($51,400) ($51,400) 

 Retooling 0 $0 ($33,000) ($33,000) 

 New Equipment Initiatives 0 $0 ($15,000) ($15,000) 

 WCF Expansion 0 $0 ($3,400) ($3,400) 

Program Increases: 59 $53,237 $56,176 $109,413 

Washington D.C. Replacement Facility 0 $0 $24,890 $24,890 

New Security Feature Equipment (WCF) 0 $0 $24,000 $24,000 

Estimated Currency Program increase (6.8B) 0 $53,237 $0 $53,237 

Complete Hiring Plan 59 $0 $7,286 $7,286 

Subtotal Program Changes 59 $53,237 $4,776 $58,013 

FY 2021 Estimate 1,863 $247,288 $640,112 $887,400 

C – Budget Increases and Decreases Description 

FY 2020 Revised Estimate 

Program Decreases..................................................................................-$103,236,000 / -59 FTE 

Currency Note Program -$50,000,000 / -0 FTE 

This decrease reflects the FY 2020 order of notes from the FRB. The order decreased from 7.0 

billion notes in FY 2019 to 5.2 billion notes in FY 2020. 

 
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Washington D.C. Replacement Facility -$44,950,000 /-0 FTE 

In FY 2019, BEP received legislative authority to acquire land and build a more efficient facility 

in the Washington, D.C. area. As a result of the new authority, BEP will not undertake the 

previously planned renovation to the existing facility in D.C.

Hiring Lag - $8,286,000/ -59 FTE 

This adjustment is to reflect the impact of the hiring lag. 

Program Increases.....................................................................................+$36,050,000 / +0 FTE 

Research and Development +$19,000,000/ +0 FTE 

To continue the research and development of the new security features for the new family of 

notes. 

Support Service Contracts +$3,500,000/ +0 FTE 

To mitigate the risks associated with the growing hiring backlog, the funding would be used to 

acquire support services to provide business continuity. 

Pay Raise (3.1% in 2020) +$7,700,000/ +0 FTE 

Funds are required for 3.1% average pay raise in January 2020. 

WCF Expansion +$5,850,000/ +0 FTE 

The funding will be used for unforeseen construction issues. 

FY 2021 Maintaining Current Levels (MCLs) ......................................+$14,686,000 / +0 FTE 

Pay Annualization (3.1%) +$1,998,000 / +0 FTE: 

Funds are required for annualization of the January 2020 3.1% average pay raise. 

Pay Raise (1.0% in 2021) +$1,948,000 / +0 FTE: 

Funds are required for a 1.0% average pay raise in January 2021. 

FERS Contribution Increase +$3,383,000 / +0 FTE: 

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

contribution rates effective FY 2021. 

Non-Pay +$7,357,000 / +0 FTE 

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

and equipment. 

FY 2021 Efficiency Savings ................................................................-$5,000,000 / -0 FTE 

Overtime Reduction -$5,000,000 / -0 FTE 

The new production technologies would yield more efficiencies resulting in less 

overtime. 

Program Decreases ....................................................................................-$51,400,000 / -0 FTE 

Retooling -$33,000,000 / -0 FTE 

The FY 2021 anticipated requirements are estimated to be $33 million lower than that of FY 

2020. 
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New Equipment Initiatives -$15,000,000 / -0 FTE 

Requested funding supports the acquisition of new technology/equipment to be used in the 

testing of new security design features. The FY 2021 requirements are estimated to be $15 

million less than that of FY 2020. 

WCF Expansion -$3,400,000/ -0 FTE 

The FY 2021 anticipated requirements are estimated to be $3.4 million lower than that of FY 

2020. 

Program Increases ................................................................................+$109,413,000 / +59 FTE 

Washington D.C. Replacement Facility +$24,890,000 /+0 FTE 

Funds are requested to reflect the increase from FY 2020 to FY 2021 to support pre-construction 

activities. 

New Security Feature Equipment (WCF) +$24,000,000 / +0 FTE 

Currency Redesign efforts require investment in new application equipment which is to be 

installed in WCF in FY 2021 and subsequently installed at the replacement D.C. Facility. 

Currency Note Program +$53,237,000 / +0 FTE 

Early indications suggest that the yearly currency order placed by the Federal Reserve Board will 

return to average order levels in FY 2021. 

Complete Hiring Plan +$7,286,000 / +59 FTE 

BEP has been experiencing a hiring lag over the last several years. BEP anticipates reducing the 

backlog of hiring actions in FY 2021 and plans to execute and complete proposed hiring actions 

and on board FTEs.
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1.3 – Object Classification (Schedule O) Obligations 

Dollars in Thousands 

 FY 2019 FY 2020 FY 2021 

Object Classification 

Actual 

Obligations* 

Estimated 

Obligations 

Estimated 

Obligations 

11.1 - Full-time permanent 166,750 176,850 182,750 

11.3 - Other than full-time permanent 150 180 180 

11.5 - Other personnel compensation 3,000 3,200 3,200 

11.6 - Overtime 20,750 12,200 10,000 

11.9 - Personnel Compensation (Total) 190,650 192,430 196,130 

12.0 - Personnel benefits 62,000 65,350 72,733 

Total Personnel and Compensation Benefits $252,650 $257,780 $268,863 

21.0 - Travel and transportation of persons 2,000 2,000 2,000 

22.0 - Transportation of things 600 600 600 

23.1 - Rental payments to GSA 4,000 4,000 4,000 

23.2 - Rental payments to others 450 1,000 1,000 

23.3 - Communication, utilities, and misc charges 15,000 16,350 16,350 

24.0 - Printing and reproduction 250 250 250 

25.1 - Advisory and assistance services 7,750 8,000 7,000 

25.2 - Other services 136,432 117,000 112,500 

25.4 - Operation and maintenance of facilities 32,000 28,000 28,000 

25.5 - Research and development contracts 47,300 50,000 50,000 

25.7 - Operation and maintenance of equip 17,000 16,500 16,252 

26.0 - Supplies and materials 262,880 194,051 248,921 

31.0 - Equipment 176,750 124,015 131,509 

42.0 - Insurance claims and indemnities 150 155 155 

Total Non-Personnel 702,562 561,921 618,537 

Total Obligations $955,212 $819,701 $887,400 

 

Full-time Equivalents (FTE) 1,727 1,804 1,863 

* The FY 2019 obligations reflect an updated object class breakout for corrections made after the reporting window and do not match the FY 

2021 President’s Budget Appendix. The adjustments did not affect the total FY 2019 obligations.

D – Appropriations Language and Explanation of Changes 

The BEP does not need annual appropriations language. 

E – Legislative Proposals 

As proposed previously, BEP requests the authority to print security documents such as birth, 

marriage, and death certificates for state governments. 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. 
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Section II – Annual Performance Plan and Report 

A – Strategic Alignment 

BEP's vision is to be the world’s standard securities printer providing its customers and the public 

with superior products through excellence in manufacturing and innovation. BEP supports the 

following Department of the Treasury FY 2018-2022 strategic goals: 

 Goal 1: Boost U.S. Economic Growth 

o Trusted Currency and Services 

 Goal 5: Achieve Operational Excellence 

o Workforce Management 

o Treasury Infrastructure 

o Delivering Customer Value 

U.S. currency is used globally and as its manufacturer, BEP needs to achieve and maintain bestin-class practices for U.S. currency to be accepted worldwide. Working closely with its partners 

in the U.S. Currency Program, BEP looks forward to updating 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 is committed to 

stay ahead of increasingly sophisticated counterfeiters. 

B – Budget and Performance by Budget Activity 

2.1 – Manufacturing Resources and Measures 

Dollars in Thousands 

 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 

 Resource Level Actual Actual Actual Actual Actual Estimate Estimate 

Expenses/Obligations $778,592 $648,365 $712,920 $914,134 $955,212 $819,701 $887,400 

Budget Activity Total $778,592 $648,365 $712,920 $914,134 $955,212 $819,701 $887,400 

Full-time Equivalents (FTE) 1,781 1,790 1,818 1,748 1,727 1,804 1,863 

The FY 2015 - FY 2019 columns represent realized resources for full-time equivalents, reimbursables, and user fees.

Performance Measure FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2019 FY 2020 FY 2021

Actual Actual Actual Actual Actual Target Target Target

Currency Notes Delivered Returned 

Due to Defects (Parts per Million)

N/A N/A N/A 0.0031ppm 0.09ppm <1ppm <1ppm <1ppm

Improved FEVS Satisfaction 66% 66% 68% 70% 68% 65% 65% 65%

Lost Time Accident Rate per 100 

Employees

1.65 1.77 1.6 0.9 1.05 1.8 1.8 1.8

Manufacturing Costs For Currency 

(Dollar Costs Per Thousand Notes 

Produced)

$42.35 $44.25 $43.58 $47.41 $51.01 $51.66 $56.00 $56.00

Yearly Currency Order (percent of 

order completed versus planned)

N/A N/A N/A N/A 100% 100% 100% 100%
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Manufacturing Budget and Performance 

($887,400,000 from reimbursable sources)

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

goals as well as supporting Treasury’s Strategic Goals Boosting U.S. Economic Growth and 

Achieving Operational Excellence. 

Description of Performance: 

Currency Notes Returned Due to Defects (parts per million (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 2019 due to improved quality assurance processes with an actual result 

of 0.09 ppm notes returned due to a defect. BEP’s target for this performance metric will be held 

constant at <1 ppm for FY 2020 and FY 2021. 

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 Employee 

Engagement Index with a target of 65 percent. In FY 2020 and 2021, 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 2019 Lost Time Accident rate was at 1.05 cases per 100 

employees, 42 percent 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 2021, 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. BEP’s target will be held at 1.80 cases per 100 employees for FY 

2020 and FY 2021. 

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 costs depends on BEP’s ability to meet spoilage, efficiency, and 

capacity utilization goals. In FY 2019, the cost of manufacturing was lower than anticipated due to 

operational efficiencies. The FY 2019 cost was $51.01 per 1,000 notes produced, compared to a 

target of $51.66. BEP’s target for this performance metric in FY 2020 and FY 2021 is set at $56.00 

per 1,000 notes produced. Per unit cost for currency is projected to increase because of significant 

reduction to the currency order for 2020 and higher labor rates and material price increases. 

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 2019, BEP met its target of delivering 100 

percent of the currency notes ordered. In FY 2020 and FY 2021, BEP will continue to target 

delivering 100 percent of the FRB’s currency order. 

C – Changes in Performance Measures 

N/A 
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D – Evidence-Building Activity 

U.S. Currency notes are rapidly increasing in complexity to incorporate improved security, 

counterfeit deterrence, machine readability, and raised tactile functionality for the vision 

impaired. The BEP’s Currency Quality Assurance (CQA) program was designed to integrate the 

current ISO 9001:2015 certified Quality Management System, new technologically advanced 

design features, new equipment, new processes, and ever higher quality and environmental 

demands to produce trusted U.S. currency at high volume and exceptional value. 

A robust CQA program is necessary to address every aspect of the U.S. Currency lifecycle; from 

product development, acquisition of material, through process and production control, to final 

release and delivery. During the research and development phase of the new security features, 

each potential feature must undergo a rigorous feasibility study. BEP CQA collects study and 

testing data to determine feasibility. Features that are deemed unfeasible will not advance to the 

next phase. In FY 2019, BEP CQA devoted extensive effort to support series changes, 

verification, and validation work, and the new Catalyst family of note designs. In FY 2020 and 

FY 2021, BEP will continue to focus on research and development of the remaining security 

features for the new Catalyst Family of note designs and improving the overall CQA program. 

Section III – Additional Information 

A – Summary of Capital Investments 

A summary of capital investment resources, including major information technology and nontechnology investments can be found at: 

https://www.treasury.gov/about/budget-performance/Pages/summary-of-capitalinvestments.aspx.