Department of the Treasury

Bureau of Engraving and 

Printing

Congressional Budget 

Justification and Annual 

Performance Report and Plan

FY 2019
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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 ..................................................................................................... 7

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

E – Legislative Proposals........................................................................................................... 8

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

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

B – Budget and Performance by Budget Activity...................................................................... 9

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

C – Change in Performance Meausres ..................................................................................... 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. 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 appropriations from Congress.

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 the Treasury goals to Boost U.S. Economic Growth and Achieve Operational 

Excellence. 

BEP’s FY 2019 request funds the following projects: 

1. 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 numismatic 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. 

2. Banknote Design and Development: In FY 2019, 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. Although many factors 

are taken into consideration, the primary purpose for redesigning currency is to address 

current and potential counterfeiting threats. 
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3. Meaningful Access: BEP continues its work in FY 2019 on redesigning currency to ensure 

that U.S. currency notes are accessible for domestic and international users, including the 

blind and visually impaired, with denominating U.S. currency notes. The three 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. Throughout FY 2019, 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. 

4. Retooling: BEP is in the process of 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 yearly currency order, the FRB and BEP 

developed and established short, medium, and long-term strategic equipment replacement 

plans 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.

5. BEP Workforce: BEP will continues its efforts to fill personnel gaps in needed STEM skill 

sets in FY 2019. In addition throughout FY 2019, BEP will continue to develop, execute, 

and communicate the results of Employee Engagement Plans and the Federal Employee 

Viewpoint Survey (FEVS) annual survey results. 

6. Currency Quality Assurance (CQA) Program: BEP has partnered with the FRB to 

improve its quality management program based on the best practices of leading 

manufacturers. In collaboration with its stakeholders, BEP developed a robust CQA program 

that began in 2014 and will continue to mature in 2019. BEP builds quality into production 

processes. Every BEP work activity is aligned and will be resourced to support the CQA 

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.

7. New International Organization for Standardization (ISO) Requirements: ISO has 

published updated standards that 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 BEP’s QMS, with 

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

processes that affect people, infrastructure and the operational environment of currency 

manufacturing. The updated ISO 14001:2015 requirements will allow BEP to manage an 
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integrated and proactive EMS that will better manage the effects of BEP activities on the 

environment and demonstrate sound environmental management.

8. 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. In 2019, 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, but 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. Alternatively, BEP would need to renovate the existing Main and Annex Buildings 

to ensure its ability to meet its mission. 

9. 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. 

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 $706,420 $770,484 $874,610 $104,126 13.51%

Other Security Products 4,000 5,000 5,000 0 0.00%

Currency Reader Program 2,500 0 0 0 NA

New Production Facility 0 64,000 16,820 (47,180) -73.72%

Total Revenue/Offsetting Collections $712,920 $839,484 $896,430 $56,946 6.78%

Expenses/Obligations:

Direct Manufacturing 721 393,425 724 492,539 724 544,446 0 51,907 0.00% 10.54%

Indirect Manufacturing 1,097 319,495 1,118 346,945 1,112 351,984 (6) 5,039 -0.54% 1.45%

Total Expenses/Obligations 1,818 712,920 1,842 839,484 1,836 896,430 (6) 56,946 -0.33% 6.78%

Net Results 0 0 0 0 NA

FY 2017 FY 2018 FY 2019 FY 2018 to FY 2019

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

C – Budget Increases and Decreases Description

Maintaining Current Levels (MCLs) ......................................................+$7,957,000 / +0 FTE

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 non-labor costs such as travel, contracts, rent, supplies and equipment.

Program Decreases ...................................................................................-$14,807,000 / -0 FTE

Implement Single Note Inspection - $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.

Dollar in Thousands

Bereau 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 Decrease (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 Increase 63,796 63,796 

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 2018 Estimated 1,836 $279,482 $616,948 $896,430 
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Program Increases ...................................................................................+$63,796,000 / +0 FTE

DCF 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. 

1.3 – Operating Levels Table

D – Appropriations Language and Explanation of Changes

The BEP receives no appropriated funds from Congress.

Dollars in Thousands

Bureau of Engraving and Printing FY 2017 FY 2018 FY 2019

Object Classification Actual Estimated Estimated

11.1 - Full-time permanent $165,271 $162,180 $186,268

11.3 – Other than Full-time Permanent Positions 0 150 155

11.5 - Other personnel compensation 19,781 2,100 2,642

11.6 - Overtime 0 15,000 17,000

11.9 - Personnel Compensation (Total) $185,052 $179,430 $206,065

12.0 - Personnel benefits 47,046 47,744 66,633

Total Personnel and Compensation Benefits $232,098 $227,174 $272,698

21.0 - Travel and transportation of persons $1,293 $1,800 $1,800

22.0 - Transportation of things 286 250 250

23.1 - Rental payments to GSA 2,121 2,000 2,000

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

23.3 - Communication, utilities, and misc charges 15,758 14,000 14,000

24.0 - Printing and reproduction 530 750 750

25.1 - Advisory and assistance services 3,446 4,000 5,000

25.2 - Other services 75,180 133,000 145,422

25.3 - Other purchaes of goods and services from Government Accounts 9 0 0

25.4 - Operation & Maintenance of Facilities 24 8,900 10,000

25.5 - Research & Development Contracts 0 15,000 17,350

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

26.0 - Supplies and materials 315,452 274,000 260,000

31.0 – Equipment 65,613 145,450 154,000

42.0 – Insurance claims and indemnities 265 160 160

Total Non-Personnel $479,977 $612,310 $623,732

Total Budgetary Resources $712,074 $839,484 $896,430

Budget Activities:

Manufacturing $712,074 $839,484 $896,430

Total Budgetary Resources $712,074 $839,484 $896,430

FTE 1,818 1,842 1,836
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E – Legislative Proposals

BEP requests the 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 the 

documents. These states are turning to foreign companies or lowering their security standards. In

2019, 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. Alternatively, BEP would need to use existing legislative authorities to renovate the 

existing Main and Annex Buildings to ensure its ability to meet its mission. 

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 designer and manufacturer, BEP needs to achieve and 

maintain best-in-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 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. 
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B – Budget and Performance by Budget Activity

2.1 Manufacturing Resources and Measures

Dollars in Thousands

Manufacturing Activity FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

Actual Actual Actual Actual Estimated Estimated Estimated

Expenses/Obligations $624,243 $733,208 $778,592 $648,365 $712,920 $839,484 $896,460

Budget Activity Total $624,243 $733,208 $778,592 $648,365 $712,920 $839,484 $896,460

FTE 1,890 1,845 1,781 1,790 1,818 1,842 1,836

Measure FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2017 FY 2018 FY 2019

Actual Actual Actual Actual Actual Target Target Target

Manufacturing Costs For Currency 

(Dollar Costs Per Thousand Notes 

Produced)

50.45 41.96 42.35 44.25 43.58 50.00 48.00 48.00

Percent of Currency Notes Delivered 

Returned Due to Defects 0.4655 0.00001 0.0000003 0.0000003 0.0000008 0.0001 0.0001 DISC

Currency Notes Delivered Returned Due 

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

Best Places to Work in Federal 

Government Ranking 47 51 74 97 38 99

Upper 

Quartile 

Upper 

Quartile 

Lost Time Accident Rate per 100 

Employees 1.63 1.73 1.65 1.77 1.60 1.80 1.80 1.90

Key: DISC - Discontinued

Manufacturing Budget and Performance

($896,430,000 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 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 2017 the cost of manufacturing was lower than anticipated

due to the success of the $100 Single Note Inspection program; the actual result 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 set at $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 FEVS. BEP’s final FY 2017 ranking

was 38 out of 150. The Partnership will issue updated rankings early in 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 the 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 
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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.

C – Change in Performance Measures

Performance Measure or Indicator Change and Justification

1. Percent of Currency Notes Delivered 

Returned Due to Defects - discontinued

BEP will replace this indicator with Currency 

Notes Delivered Returned Due to Defects

(parts per million).

2. Currency Notes Delivered Returned Due 

to Defects (parts per million) - new 

Currency Notes Delivered Returned Due to 

Defects (parts per million) is an indicator of the 

BEP’s ability to provide a quality product. The 

data will come from BEP’s internal 

management information system and will be 

reported internally to BEP leadership on a 

monthly basis and annually to the Department. 

With the publication of the Treasury Strategic Plan for FY 2018-2022, BEP will work in FY 

2018 to baseline its performance against the new strategic objectives. This could result in 

additional changes to performance measures in the FY 2020 budget.
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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, 

BEP is 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 

Treasury Enterprise Identity, Credential and Access Management, 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 FY 2018 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.