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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 th 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

es 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

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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. 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.





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 lire.

(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 fulrilling 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 or ihis Order.

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Members of the Committee shall serve without compensation.


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 starr, 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 Conuerce 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.



June 30, 1982.


office of the Press Secretary

For Immediate Release

July 15, 1982





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 thė 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 oĚ 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:

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

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Three basic groups

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 3. 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.

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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 ano 13 of which are functionally focused. Task forces are headed by a project manager and are of varying sizes according to the agency and issues under review. All members of the task forces serve on a volunteer basis at the direction of the tax-exempt organization.

A list of task forces identified to date 16 attached.


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 specialists will be paid by their respective employers. In addition, private sector organizations will provide funding, staff and services

support the work of the task forces through the tax-exempt organization.



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Task forces are in the process of completing in-depth briefings. They 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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