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"(g) The Committee may establish such subcommittees of its members as may be necessary, subject to the provisions of the Department of Commerce Committee Management Handbook * * *."

In addition to the provisions establishing the Executive Committee and specifying its functions, the Executive Order contains several related administrative provisions Section 3(c) authorizes a management office in support of the Executive Committee:

"A management office may provide overall
administrative staff support to the Commit-
tee, guide the day-to-day operations of the
Survey and provide liaison with the Execu-
tive Office of the President; separate unit
staffs may be utilized to provide such
staff support as is necessary to accomplish
reviews of individual agencies."

Finally, section 3(e) of the Executive Order provides for a non-profit organization to support the Committee:

"(e) 'The Committee is to be funded,
staffed and equipped, to the extent practi-
cable and permitted by law, by the private
sector without cost to the Federal Govern-
ment. To accomplish this objective, it is
expected that the Secretary of Commerce
will engage in a joint project, with a non-
profit organization, pursuant to Section 1
of Public Law 91-412 (15 U.S.c. 1525), for
the purpose of providing staff support to
the Committee as described in Section
3(c)."

To implement this provision, the foundation for the President's Private sector Survey on Cost Control was established as a nonprofit corporation in the District of Columbia. The articles of incorporation state that the primary purpose of the Foundation is to assist the Private Sector Survey on Cost Control. This is to be accomplished by providing expert and professional services, office facilities, staff and other support services.

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On July 7, 1982, the Commerce Department and the Foundation entered into an agreement for the provision of assistance by the Foundation to the Executive Committee. section III of the agreement, the Foundation agrees at no cost to the Federal Government:

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"(a) To provide such suport as may be requested by the Chairman of the Committee to assist the Committee in carrying out its responsibilities, including but not limited to:

"(1) facilities, including office space, furniture, equipment, telephonic and computer equipment and services as may be necessary; and

"(2) staff support to the Committee
as may be necessary, and in connection
therewith to hire such employees and retain
such consultants and advisors, either with
or without compensation, as the Foundation
in its discretion shall deem necessary or
advisable."

Section IV of the agreement, captioned "Status of the Foundation," provides:

"The parties hereto acknowledge and
agree that the status of the Foundation
under this Agreement, and in all of its and
its employees agents and representatives
dealings and relations with the Secretary,
the Department of Commerce and other Fed-
eral agencies shall be that of an indepen-
dent entity providing services under a
joint project and not as one involving
employment, no statutes governing Federal
employment shall apply to the Foundation,
and the Foundation shall not have any obli-
gation of financial accountability to the
Department of Commerce."

The task forces.

The nature and functions of the task forces were described by Mr. Felix E. Larkin, a member of the Executive Committee, in his testimony of September 15, 1982,' before your subcommittee.

In his prepared statement submitted for the record, Mr. Larkin explained the composition of the task forces as follows:

"The balance of the organization of the
President's Private Sector Survey consists
of 35 Task Forces which are reviewing the
operations of the Executive Branch. These
include 23 assigned to cover individual
Cabinet departments or sub-departments and
a number of independent agencies. The
other 12 Task Forces are studying
functional areas cutting across departments
and agencies such as data processing,
procurement, real property management,
personnel and user fees. I believe the
Committee has received a list of these Task
Forces.

"Each of the 35 Task Forces has members
of the Executive Committee who act as
Co-Chairpersons. A Task Force, typically,
has four Co-Chairpersons, a project
manager, and from 25 to 30 members. Pro-
ject managers are generally senior em-
ployees of a Co-Chairperson and bring ex-
tensive managerial expertise and commitment
to the review of assigned areas. These
Task Forces are in various stages of
analyzing areas of study and preparing work
plans."

Mr. Larkin's statement went on to outline the operations of the task forces:

"* * * the Chairman (of the Executive Committee) and the Management office are leading each Task Force through a fourphased sequence of activities:

"Phase I

-- Assignment and clearance of

Executive Committee Members,
recruitment of project managers
and core staff, orientation
briefings of Co-Chairpersons
and staff by the Management
Office.

"Phase II -- Completion of Task Force

recruitment, issue identifica-
tion through a diagnostic

survey of assigned areas, and
preparation of work pians
which identified initial areas
for further study.

"Phase III-- Performance of in-depth

studies by the Task Force,
periodic progress. reporting to
the Chairman and Management
office; discussion of
preliminary findings with
agency heads and Management
Office.

"Phase IV

Preparation of the draft and
final Task Force reports; Task
Force close-out.

"In addition, the Management Office provides each Task Force with operating guidelines, report format and preparation instructions, and disclosure and conflict

of interest guidelines." Mr. Larkin's statement continued:

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III.

Even apart from the broad application envisioned for the Advisory Committee Act's phrase "any subcommittee or other subgroup," a functional analysis leads to the conclusion that the Survey's task forces clearly are "subcommittee(s) or other subgroup(s)" of the Executive Committee."

The task forces have organized structures and assigned subject matter responsibilities. Each task force is co-chaired by members of the Executive Committee. Moreover, it appears that the task forces are the source of all substantive activity now in progress to carry out the functions of the Executive Committee. The task forces are developing work plans for their assigned subject areas; they are performing in-depth studies in these areas; they discuss their preliminary findings with Federal agency heads and the Management office; and they will prepare draft and final reports.

The Executive Committee itself has not yet held a meeting. (As noted previously, the Committee's charter states the expectation that the Committee "or subcommittees thereof" will meet monthly.) Presumably the task forces, or at least some of them, have met since some work plans have been developed. Likewise, at least some task forces are now obtaining information from Federal agencies. (As noted previously, the Executive Order and the charter provide for Federal agencies to furnish information to the Executive Committee "and its staff units * * *.")

In sum, the tas forces have all the essential characteristics that one would expect to find in subcommittees or subgroups. We recognize that staffing and funding for the task forces may be provided, at least in part, by the Foundation. However, the source of funding is immaterial so long as the task forces are being used as subcommittees or subgroups of the Executive Committee. cf., S. Rep. No. 92-1098, discussed previously.

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