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responsible for an indepth review of the entire executive branch of government. Working with the Inspectors General and the Council on Integrity and Efficiency which have provided an inside look on how we can improve management of the executive branch, the private sector survey will give us an objective outsiders' view on improving management and reducing federal costs. Special emphasis will be placed on eliminating overlap, red tape and duplication, identifying non-essential administrative activities and increasing management

effectiveness. In a few days, I will announce the names of distinguished Americans who will serve as the chairman and · members of the executive commitee of the survey. All of them will be proven leaders in their fields, all of them will bring know-how and a no nonsense, results oriented approach to this crucial undertaking, and all of them will offer their services

as unsalaried volunteers.

Uur evaluation will begin with the Departments of Defense, Health and Human Services and Housing and Urban Development. In turn, other departments and major agencies will be given a detailed evaluation. This will be the largest effort of its kind ever mounted to save tax dollars and improve the working of government. The American people deserve no less. It's their money the government is spending in such oversized amounts to often unwisely and wastefully. I will ask the Congress to cooperate in putting the recommendations of the survey into practice.

Government has grown too fast and the economic stakes for the American people are too high for politics as usual. on this vital issue. We all face an economic problem that has

been building over many years and we must all work together to correct it.

EXECUTIVE ORDER

12369

PRESIDENT'S PRIVATE SECTOR SURVEY ON COST CONTROL
IN THE FEDERAL GOVERNMENT

By the authority vested in me as President by the Constitution and laws of the United States of America, and in order to establish, in accordance with the provisions of the Federal Advisory Committee Act, as amended (5 U.S.C. App. I), an advisory committee to study cost control in the Federal Government, it is. hereby ordered as follows:

Section 1. Establishment. (a) There is established the Executive Committee of the President's Private Sector Survey on Cost Control in the Federal Government. The Committee shall be composed of not more than 150 members appointed by the President from among citizens in private life.

(b)

The President shall designate a Chairman from among the members of the Committee.

Sec. 2. Functions. (a) The Committee shall conduct a private sector survey on cost control in the Federal Government and shall advise the President and the Secretary of Commerce, and other Executive agency heads with respect to improving management and reducing costs.

(b) The Committee shall conduct in-depth reviews of the operations of the Executive agencies as a basis for evaluating potential improvements in agency operations.

(c) In fulfilling its functions the Committee shall consider providing recommendations in the following areas:

(1) Opportunities for increased efficiency and reduced costs in the Federal Government that can be realized by Executive action or legislation;

(2) Areas where managerial accountability can be enhanced and administrative control can be improved;

(3) Opportunities for managerial improvements over both the short and long term;

(4) Specific areas where further study can be justified by potential savings; and

(5)

Information and data relating to governmental expenditures, indebtedness, and personnel. management.

Sec. 3. Administration. (a) The heads of Executive agencies shall, to the extent permitted by law, provide to the Secretary of Commerce, the Committee and its staff units such information, including that relating to the structure, organization, personnel and operations of the Executive agencies, as may be required for carrying, out the purposes of this Order.

(b) Members of the Committee shall serve without

compensation.

(c) A management office may provide overall administrative staff support to the Committee, guide the day-to-day operations of the Survey and provide liaison with the Executive Office of the President; separate unit staffs may be utilized to provide such staff support as is necessary to accomplish reviews of individual agencies.

(d) The Secretary of Commerce shall, to the extent permitted by law and subject to the availability of funds, provide the Committee with such information, administrative services, facilities, staff and other support services it may require.

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

Sec. 4. General Provisions.. (a) Notwithstanding the provisions of any other Executive order, the responsibilities of the President under the Federal Advisory Committee Act, as amended, except that of reporting annually to the Congress, which are applicable to the Committee established by this Order, shall be performed by the Secretary of Commerce in accordance with guidelines and procedures established by the Administrator of General Services.

(b) In accordance with the Federal Advisory Committee Act, as amended, the Committee shall terminate on December 31, 1982, unless sooner extended.

THE WHITE HOUSE,

June 30, 1982.

RONALD REAGAN

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THE PRESIDENT'S PRIVATE SECTOR SURVEY ON COST CONTROL
IN THE FEDERAL 60VERNMENT

Concept

On February 18, 1982, President Reagan announced the establishment of a Private Sector Survey for the purpose of finding new ways to control the cost of operating the Federal Government. The survey members will assist the various departments, agencies, and independent establishments of the Executive Branch to perform their duties in the most cost-effective and efficient manner possible. The individual task forces will be made up of citizens from across the country, drawing particularly from industry, labor, and the academic communities.

The Inspectors General, the Assistant Secretaries for Management, and the Office of Management and Budget will assist the survey teams as necessary and designate areas of interest in each agency for special survey emphasis.

A tax-exempt organization has been established with industry, labor and the academic communities contributing financial and personnel resources to support the work of the Survey.

Objective

Special emphasis will be placed on eliminating operational overlap and duplication, identifying nonessential administrative activities, and increasing management effectiveness. Primary attention of the task forces will be devoted to areas where maximum benefits can be realized from the efforts expended. To achieve measurable results, recommendations will:

o Identify opportunities for increased efficiency and reduced costs that can be realized by Executive action, Executive Order, or Congressional legislation.

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Determine areas where managerial accountability can be enhanced and administrative control can be improved.

Suggest managerial operating improvements over both the short and long term.

Pinpoint specific areas where further study can be justified by potential savings.

Organization

Three basic groups

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the Executive Committee, the Survey Management Office, and the individual task forces -- will undertake the review. It is anticipated that many individuals will be involved in the project on a volunteer basis.

EXECUTIVE COMMITTEE -- The Executive Committee consists of leaders from the business, labor, and academic communities. Members have been selected for their special abilities to give detailed advice on cost-effective management of large organizations. To date, 105 individuals have been officially appointed to the Executive Committee, which is chaired by J. Peter Grace, Chairman and Chief Executive Office of W. R. Grace and Company.

Additional individuals are in the process of being appointed to the Committee. A current list of appointments is attached.

As part of their contribution to the President's Private Sector Survey, members of the Executive Committee volunteer their time and the services of employees for staff work on the individual task forces, paying their salaries and expenses while serving on the project.

SURVEY MANAGEMENT OFFICE -- The Survey Management Office is headed by James W. Nance, Director, and Janet Colson, Deputy Director. offices are located in private sector space at 1858 K Street, N.W., Washington, D.C. 20006. The expenses of the Survey Management Office (space, supplies, support staff) are paid for by the Foundation for the President's Private Sector Survey, Inc., a not-for-profit corporation established for the purpose of supporting the work of the project.

TASK FORCES -- The review of the Executive Branch of government' will be undertaken by 35 task forces, 22 of which are organizationally focused and 13 of which are functionally focused. Task forces are headed by a project manager and are of varying All sizes according to the agency and issues under review. members of the task forces serve on a volunteer basis at the direction of the tax-exempt organization. A list of task forces

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This nonpartisan, nonpolitical review will be concerned with all major departments, agencies, independent establishments, and government organizations comprising the Executive Branch of the government.

The survey will concentrte on eliminating duplication and inefficiency. Policy, programs, and organizational structure will not be specifically addressed unless special circumstances so dictate.

Funding

Salaries and expenses of the full- and part-time management In addition, specialists will be paid by their respective employers. private sector organizations will provide funding, staff and services to support the work of the task forces through the tax-exempt organization.

Schedule

They

Task forces are in the process of completing in-depth briefings. will then prepare comprehensive work plans for the review of the departments and agencies. Preliminary plans call for the bulk of the review to occur during the months of July, August and September, with task force reports to be submitted to the Management Office and the Executive Committee in October. A final report will then be prepared for submission to the President, the Secretary of Commerce and the Congress.

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