Department of the Treasury

Bureau of Engraving and 

Printing

Congressional Budget 

Justification and Annual 

Performance Report and Plan

FY 2020
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Table of Contents

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

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

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

1.1 – Resource Detail Table ....................................................................................................... 4

1.2 – Budget Adjustments Table ................................................................................................ 5

C – Budget Increases and Decreases Description ...................................................................... 5

1.3 – Operating Levels Table ..................................................................................................... 7

D – Appropriations Language and Explanation of Changes...................................................... 7

E – Legislative Proposals........................................................................................................... 7

Section II – Annual Performance Plan and Report................................................................... 8

A – Strategic Alignment............................................................................................................. 8

B – Budget and Performance by Budget Activity...................................................................... 8

2.1 – Manufacturing Resources and Measures........................................................................... 8

C – Change in Performance Meausres....................................................................................... 9

Section III – Additional Information ........................................................................................ 10

A – Summary of Capital Investments ...................................................................................... 10
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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. 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 2020 request funds the following projects:

Replacement Production Facility: BEP’s current Washington, D.C. facility has an aging and 

outdated infrastructure which drives up costs and adversely impacts quality of the currency. 

BEP’s FY 2020 Congressional Justification displays expenditures for planning and design 

services for a new, smaller, more efficient currency production facility. A new 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 be able to reduce its space by 28 percent and reduce its annual 

operating costs by at least $38 million. In 2019 and 2020 the budget includes costs associated 

with initial planning as well as the cost for the preliminary analysis by the Army Corps of 

Engineers for compliance with the National Environmental Policy Act (NEPA) and the cost of 

site surveys. 1

1. Western Currency Facility Expansion: 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 

 1 The final 2019 appropriations bill provided BEP with the necessary authority to purchase land and construct a new 

production facility. In addition, the Agriculture Improvement Act of 2018 included a provision that authorizes the 

Secretary of Agriculture to transfer to the Secretary of the Treasury administrative jurisdiction of a 100-acre parcel 

of property at the Beltsville Agriculture Research Center (BARC) for establishing a BEP production facility. 

Treasury and USDA plan to enter into a Memorandum of Agreement to implement the property transfer.
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production requirements of the next family of U.S. currency banknotes that focus on the 

integration of strong, new security features. 

2. Banknote Design and Development: In FY 2020, 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 

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. 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 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. 

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

state-of-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 and established 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.

4. Talent Management: BEP will continue its designated talent management initiatives, while 

filling personnel gaps in needed STEM and cybersecurity skill sets. Throughout FY 2020, 

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 – Resource Detail Table
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1.2 – Budget Adjustments Table

*The 2020 President’s Budget continues to include the proposal to give BEP the authority to purchase land and construct a new 

facility as a legislative proposal, rather than enacted law, due to the timing of the enactment of the final 2019 appropriations bill. This 

table assumes enactment of the proposal in 2019. 

C – Budget Increases and Decreases Description

FY 2019 Revised Estimate

Program Decrease.......................................................................................-$30,820,000 / -0 FTE

Washington D.C. New Facility -$30,820,000 / -0 FTE 

This is an adjustment to the original estimate to reflect when the new facility work will begin. 

Program Increases...................................................................................+$15,591, 000 / +0 FTE

Mint/BEP OMS II Consolidation Costs +294,000 / +0 FTE

One time consolidation costs to the Mint’s E-Commerce infrastructure and services platform. 

Washington D.C. Facility Building Upgrades +$15,297,000/ +0 FTE

These building and supporting system upgrades (i.e. HVAC, freight elevators) are necessary to 

maintain the existing facility until the new production facility is complete.

FY 2020 Maintaining Current Levels (MCLs).........................................+$7,275,000 / +0 FTE

Non-Pay +$7,275,000 / +0 FTE 

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

Efficiency Savings.........................................................................................-$3,000,000 / -0 FTE

Productivity Improvements & Overtime Reduction -$3,000,000 / -0 FTE 

By employing new production technologies, BEP plans for increased operational efficiencies that 

require less overtime.
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Program Decreases .....................................................................................-$18,960,000 / -0 FTE

Washington D.C. Building Renovations -$18,960,000 / -0 FTE

This adjustment reflects a transition from renovation costs to new facility costs. 

Program Increases..................................................................................+$20,371,000 / +27 FTE

Operations and Maintenance (O&M) of Prior-year Enterprise-wide Cybersecurity Investments

+$371,000 / +0 FTE 

The request includes funding to support O&M for prior year Cybersecurity Enhancement 

Account investments. O&M will be funded by Treasury Bureaus through Treasury Franchise 

Fund (TFF) billing. This increase represents the bureau’s portion of the $17.5 million O&M 

total. 

Security Feature Equipment +$15,000,000 / +0 FTE

Funds are needed for the award of a contract for production equipment needed to print new 

currency features.

Workforce Planning Hiring Efforts (STEM) +$5,000,000 / +27 FTE

Includes personnel costs for BEP’s STEM hiring program to meet its critical mission and cyber 

security requirements. 
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1.3 – Operating Levels Table

D – Appropriations Language and Explanation of Changes

The BEP does not need annual appropriations language.

E – Legislative Proposals2

As in FY 2019, 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.

 2 The 2020 President’s Budget continues to include the proposal to give BEP the authority to purchase land and 

construct a new facility as a legislative proposal, rather than enacted law, due to the timing of the enactment of the 

final 2019 appropriations bill. 
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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 1.3 Trusted Currency and Services 

• Goal 5: Achieve Operational Excellence 

o 5.1 Workforce Management 

o 5.2 Treasury Infrastructure 

o 5.3 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

Key: DISC- Discontinued; B- Baseline

Manufacturing Budget and Performance

($886,887,000 from reimbursable resources):

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. 

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, 
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and capacity utilization goals. In FY 2018, the cost of manufacturing was lower than anticipated

due to the success of the $100 Single Note Inspection program, which enables BEP to reclaim 

notes which would previously have been destroyed. The 2018 cost was $47.41 per 1,000 notes 

produced, compared to a target of $48.00. Due to the mix of denominations ordered in FY 

2019, BEP’s target for this performance metric in FY 2019 and FY 2020 is set at $50.00 per 

1,000 notes produced.

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 2018 with an actual result of 0.0031ppm notes 

returned due to a defect. BEP’s target for this performance metric will be held constant at <1

ppm for FY 2019 and FY 2020.

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 engagement index with a target of 65 percent. In FY 2019 and 2020, 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 2018 Lost Time Accident rate was at 0.90 cases per 

100 employees, 50 percent lower than the target of 1.80 cases per 100 employees. Both plants 

ended the year below the target, the best safety performance in a decade. This performance 

resulted from increased focus on following safe work practices, avoiding hazards, and being a 

Director’s priority. For FY 2020, 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 2019 and FY 2020. 

C – Change in Performance Measures

Performance Measure or Indicator Change and Justification

1. Best Place to Work in the Federal 

Government Rankingdiscontinued

BEP will replace this indicator with Improved 

FEVS satisfaction in order to align with the 

department’s standard of measurement using FEVS 

engagement index. 

2. Improved FEVS satisfaction -

new 

This is an improved measure to Best Place to Work 

in the Federal Government Ranking. This measure

provides leadership with BEP employee perceptions 

of job satisfaction, engagement, and workforce 

management. This measure uses the department’s 

FEVS engagement index. 

3. Yearly currency order (percent of 

order completed versus planned) -

new

This measure tracks the percent of the yearly 

currency order completed against the yearly ordered 

planned. The target for this measure is 10 percent.
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Section III – Additional Information

A – Summary of Capital Investments

BEP capital investment strategy is comprised of several broad investment categories with more 

specific smaller projects in each category. 

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, cost effective, and 

efficient in meeting customer requirements for the production of currency notes. In addition, as 

part of its meaningful access program, BEP is pursuing development of a tactile feature. This 

may require the purchase of additional capital equipment.

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

Treasury Enterprise Identity, Credential and Access Management, HRConnect (a Human 

Resources Line of Business service provider), and the Integrated Talent Management (ITM) 

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 FY 2019 capital investment resources, including major information technology 

and non-technology investments, can be found at: 

http://www.treasury.gov/about/budget-performance/Pages/summary-of-capital-investments.aspx

This website also contains a digital copy of this document.