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1479898

THE PRESIDENT'S PRIVATE SECTOR SURVEY ON COST CONTROL
September 15, 1983

The Honorable Ronald Reagan

President of the United States

The White House
Washington, D.C.

Dear Mr. President:

The Task

The following Report represents the results of the Office of
the Secretary of Defense Task Force of the President's Private
Sector Survey on Cost Control in the Federal Government.
Force was chaired by Robert A. Beck, Chairman and CEO, Prudential
Insurance Company of America; Carter L. Burgess, Chairman,
Executive Committee, Foreign Policy Association; James E. Burke,
Chairman and CEO, Johnson and Johnson; and Carl D. Covitz,
President, Landmark Industries, with William H. Tremayne serving
as Project Manager. The Report culminates the combined efforts of
over 45 members of the Task Force, who devoted about 160 person-
months of pro bono work to the PPSSCC initiative. A list of all
Task Force members is enclosed with this letter.

The Report on the Office of the Secretary of Defense contains
major recommendations which, when fully implemented, could result
in three-year cost savings of $44,756 million. It should be
noted, however, that some of the recommendations may require
several years for the savings to be realized. While all facets of
the Office of the Secretary of Defense could not be surveyed in
the time allotted, areas selected for review were considered to
offer significant potential for cost control and improved
efficiency. The importance of the accompanying recommendations
rests on the fact that they represent the potential for better
utilizing finite resources available to the Federal Government.

Clearly, other opportunities for cost savings and revenue generation exist but, due to limited time and personnel resources, they could not be pursued. Several are suggested for further review because they offer future potential savings and revenue opportunities.

On behalf of the Co-chairs and the members of the Task Force,
I would like to express our deep appreciation for the opportunity
to have been of service to you and the members of your
Administration.

Respectfully,

Jeter

J. Peter Grace

Chairman, Executive Committee

1850 K Street, N.W. Suite 1150 Washington, D.C. 20006
(202) 466-5170

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