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*THE WHITE HOUSE

office of the Press Secretary

For Immediate Release

July 15, 1982

FACT SHEET

ON
THE PRESIDENT'S PRIVATE SECTOR SURVEY ON COST CONTROL

IN THE FEDERAL GOVERNMENT

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 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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Organization
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 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 Sectoi 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 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. · Scope

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

Schedule 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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The Executive Committee uf the President's private Sector Survey on Cost Control in the Federal Governnent ("the Committee") was established by Executive Oråer. 12369 of June 30, 1982.

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

(b) The Committee shall conduct in-depth reviews of the operations of the Executive agencies as a basis for evaluating potential improvenients in agency operations. Ic) In fulfilling its function the Cunnittee 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;
12) Areas where niariagerial acccurtability can be
enhar.cea and administrative control can be improved;
(3) Opportunities for managerial improverents over
both the short and long tërth;

(4) Specific areas where further study can be
justifica by potential savings; and
15) Inicrnaticii orici data relating to covernriental
täienditures, inciebtedress ord personnel malagenent.

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The Conr:ittee shall be conposed of no more than 150 merribers who shall be appointed by the Presidérit frwdi oncliç citizens in privite life. The frieribers shall serve at the pleasure cf the President. The Fresiderit stall designate a Chairman from anong the nembers of the Committee.

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la) The Conmittee shall report to the President and to
the Secretary of Commerce. Thereafter, it shall report
to the heads of other Executive agencies aná as required
by the Federal Advisory Committee act, as anended (5
U.S.C. App.).

(b) The heads of Executive agencies shall, to the
extent permitted by law, provide the Committee and its
staff units, with such information and appropriate
logistical support as it may require fur the purpose uf
carrying out its functions.
ic) The Department of Commerce, Office of the Assistant
Secretary for Administration, shall, to the extent
permitted by law and subject to the availability of
funds; provide the Committee with such administrative
services, facilities, staff and other support as may be
necessary for the effective perfornance of its functions.
(d) The Committee, or subcommittees thereof, is expected
to meet at least monthly before the final report and
recommendations are submitted to the President.

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le) Members will not be conipensated for their services, but while engaged in the work of the Survey, may be allowed travel expenses, (including per diem in lieu of subsistence), as authorized by law for persons serving intermittently in the government service (5 U.S.C. S 5702 and 5703).

(f) The estimated Federal cost for operating the
Conmittee including travel expenses and per dieni in lieu
of subsistence, is approximately $50,000, which includes
une person-year of support.

(9) The Committee may establish such subconmittees of
its menbers as may be necessary, subject to the provisioris
ci trit De Vollrent of Commerce Committee Managenient

ranckcok (Port IV, Chapter 1, Sec E). Secticr. 5. FEDERAL ADVISCRY COMMITTEE ACT

In accordance with Executive Order No. 12369
notwithstanging the provisions of any other Executive
Order, the responsibilities of the President under the
Federal Advisory Corimittee Act, as amended (5 U.S.C.
app.), except that of reporting annually to the Congress,

shali be performed by the Secretary of Commerce. Section 6. DURATION

The Committee shall terminate by December 31, 1982,
unless it is terminated Earlier or renewed by proper
authority by appropriate action.

JUL 7 1982

malel Geldige

Date

Secretary of Commerce

. : A GREEMENT

Between
THE SECRETARY OF COMMERCE

and

THE FOUNDATION FOR THE PRESIDENT'S

PRIVATE SECTOR SURVEY ON COST CONTROL, INC.

THIS AGREEMENT, entered into this 7th day of July

1982, WITNESSETH:

WHEREAS, the President of the United States has established by Executive Order No. 12369, dated June 30, 1982, a Presidential Advisory Committee (the "Committee") to advise the President, the Secretary of Commerce and the heads of cther Executive agencies with respect to improving management and reducing costs; and

WHEREAS, Section 3(e) of Executive Order 12369 provides that to the extent practicable the Committee is to be funded, stafied and equipped without cost to the Federal Government and 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 i of Public Law 91-412 (15 u.s.c. 1525), for the purpose of providing staff. , support to the Committee, and

WHEREAS, there has been organizea, under the laws of the District of Columbia, a charitable, not-for-proiit corporation under the name · "The Foundation for the President's Private Sector Survey on Cost Control, Inc." (the "Foundation"), which Foundation is willing to provide facilities, services and staff support and otherwise assist the committee in carrying out its responsibilities; and

WHEREAS, by reason of the foregoing, the Secretary and the Foundation have a mutual interest in taking such action as may be necessary or desirable to assist the Committee in Carrying out its responsibilities in a timely and efficient

manner.

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