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can be improved; opportunities for managerial improvements over both the shortand long-term; specific areas where further study can be justified by potential savings; and information and data relating to governmental expenditures, indebtedness, and personnel management.

In carrying out these functions, the Survey is focusing principally on the operational aspects of Government programs as they currently exist. I would like to emphasize this at this point. We are looking at operations, not at programs, whether they are justified or whether they exist. Therefore, we are looking at how efficiently the programs are administered. To do this job, the Survey itself is organized and managed along three primary managerial lines: an executive committee, a management office, and 35 task forces.

The Executive order established, as you know, an Executive Committee of the President's Private Sector Survey on Cost Control. The members of the Executive Committee were selected from lists prepared by the White House and Mr. Grace, the chairman. The committee consists of private citizens, chosen principally for their special ability to give detailed advice on cost-effective management of large organizations; for their record of performance in their own industry; and for their willingness to contribute their time and resources to participate in this Survey.

Many committee members head the largest companies in the United States, and they represent a wide variety of types and sizes of businesses. The companies are manufacturers and marketers of virtually every type of industrial and consumer product, and they provide a broad spectrum of services to businesses and to individuals. It is a nonpartisan, nonpolitical group from about half the States in the United States and from the District of Columbia.

In addition to serving on the Executive Committee, most of the executive committee members are acting as cochairpersons to the 35 Survey task forces which are examining the operations of the departments and subdepartments, as well as independent agencies of the executive branch.

It should be noted at this point that the Executive Committee members are working closely with the Cabinet Secretaries, agency heads, and key staff of their assigned agencies. The reception and cooperation accorded the members by agency leadership has been outstanding, and we are very grateful for their assistance. Mr. Chairman, I believe you have been furnished with the names of the Executive Committee members, and I have brought an updated list which I will be glad to leave with the committee at this time.

With regard to the management office, the Executive order also provided for a management office which would furnish 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. The management office has a director, a deputy director-who is the governmental employee designated as the Government liaison by the Secretary of Commerce-and a chief operating officer. It also includes 12 desk officers, most of whom are Washington-based senior executives with broad experience working with the Federal Government. Each is responsible for prt paring the assignments and guiding the efforts of two to three task forces into the most productive areas of review, coordinating communications, and monitoring progress.

The management office also has on its staff a legal counsel and public affairs section. Survey operations are coordinated and communicated with the Inspectors General offices, the Office of Management and Budget, the General Services Administration, the Otfice of Personnel Management, and the Assistant Secretaries for Management of the different departments.

I would also like to emphasize that we have benefited from the cordial reception and extensive discussions that I, myself, and numerous others of the survey have had with the top officials and staff of the General Accounting, Office and the Congressional Budget Office. It is very encouraging that all of us, whether from the private sector, the agencies under review, or the agencies of your branch, the legislative branch, are so united in our desire to reduce wasteful spending and inefficiency in Federal operations. With regard to the task forces, the balance of the organization of the President's Private Sector Survey consists of 35 task forces which are reviewing the operations of the departments and agencies of the executive branch. These task forces include 22 which are assigned to cover individual Cabinet departments or subdepartments and a number of independent agencies. The other 13 task forces are studying functional areas, which cut across the departments and the agencies, such as data processing, procurement, real property management, personnel, user fees, and so on. I believe the committee has received a list of these 35 task forces.

Each of the 35 task forces has members of the executive committee who act as chairpersons to that task force. A task force typically has four cochairpersons, a project manager, and from 25 to 30 members. Project managers are generally senior employees of cochairpersons, who have recruited these people and pay for them, some of them from their own companies. These project managers bring extensive managerial expertise and commitment to the review of their assigned areas. These 35 task forces are in various stages of analyzing areas of study and preparing work plans.

In an undertaking such as the survey, with so many subelements, operating in so many places, under tight time pressures, certain internal control systems and procedures are necessary to insure cohesiveness of approach and consistency of execution. To meet this need, the chairman and the management office are leading each task force through a fourphase sequence of activities. This is the chronology which we followed in developing the organization and looking into the areas of study.

The first phase covers the assignment and clearance of executive committee members, recruitment of project managers and core staff, orientation briefings of cochairpersons and staff by the management office. For this critical phase, we in W. R. Grace & Co. prepared bibliographies of books, brochures, and articles written in recent years on the Federal Government, and we excerpted a great deal of material relevant to the different departments and agencies of the executive branch. We felt this was the duty of the chairman to prepare a lot of this background material, and we at W. R. Grace & Co., felt that, therefore, the chairman was entitled to support in preparing all this material.

This material I just mentioned, I do have a sample of it here, and I would be happy to leave it for you and your committee to show the kind of research we have done-one sample, a representative sample. This little booklet identifies 349 different books, pamphlets, articles, and studies that have been written, and also hearings before the Congress on the Federal Government and its functions, We bought all those books, and they are in the library of the task force.

We further excerpted from many of those books what we regarded as interesting key conclusions in those studies, so that the task forces have been able to examine these, see if they think they are interesting for them to look at, and then get a hold of the basic book from which they have been excerpted. It is a useful tool that we thought has been helpful, and I think it has been very helpful. So I will be glad to leave it with the committee for their examination. Second, we in Grace examined Federal budget trends for all major programs over the last 20 years.

We synthesized a great deal of the material into a single spread sheet, relating to each of the departments or major agencies. In other words, Agriculture, Labor, State, Defense, you name it. I brought one sample, as they are a little heavy to carry. This is what we call a spread sheet, and I guess we could go across the room with it. It is a good résumé of the number of personnel and budget authorizations and expenditures of certain sample years over a 20-year period, which gives a good perspective of trends and so on. We have one for each department; this happens to be Agriculture, which I just brought as a representative one. You might find it as an interesting background study.

We availed ourselves of the numerous studies that have been made of the executive branch, particularly the unimplemented recommendations of your agency, the General Accounting Office, as well as the findings of the Congressional Budget Office, the Office of Management and Budget, and Inspectors General reports that have been prepared for the different agencies. We studied all of those documents. As you know, the General Accounting Office has published-which was very helpful to us—this huge number of recommendations that they have made that have not been implemented. To us, it seemed that this was a good beginning, a grist for the mill, and to the extent that we were able to conclude that many of them were meritorious and should have been implemented, I believe we will be re-recommending them. But at any rate, there are many of them, as you are well familiar with.

Since that is very complex, we took all those recommendations, we segregated them into those that apply to each of the departments and agencies, and we compiled an index so that each task force was able to have a ready reference to what was in those books as it related to their department. For instance, the Agricul. ture Department, we searched out the recommendations relative to the Agriculture Department that referred to the Office of the Secretary, the department administration, the Office of Government and Public Affairs, the Office of the Inspector General, the Office of the General Counsel, and we listed the pages where those recommendations could be found for each task force. This was a rather extensive, very difficult job, but we have such an index from all these Government recommendations for each task force, for each agency, and we gave it to them, which really gave them quite a

headstart. This was such a large project and so complex, as you know much better than we do, and we felt that this would help speed up our examination because our time is relatively limited. I think it has turned out to be a very good tool, and I will also be happy to make this available to you for your examination, and incidentally, if you think it is useful, I would be glad to furnish the spread sheet on all the agencies that we did.

I just mention those to tell you that this is the kind of research we did, and clearly gave us a head start. It took a great many people in W. R. Grace & Co., and we have defrayed a rather extensive amount of cost. But since Mr. Grace is the chairman, we felt that he was entitled to that kind of support, so we proceeded.

A second phase of our development of working toward our study and recommendations had to do with the completion of the task force recruitment. First we had to find all these executive members. Some of them could not serve. Some came and decided they did not have the time. But then beyond that, there was this very large problem of recruiting all the people who were going to do the examination. So that phase involved the recruitment, the identification of interesting issues as they were gleaned from these recommendations that have heretofore been made by the GAO and others, and the preparation of work plans which identified the initial areas of further study.

The third phase--and I think that most of the task forces are now in this phase-involved the performance of in-depth studies by the task force, periodic progress reports of what they are doing to the chairman and the management office, discussion of preliminary findings with agency heads and the management office.

The last phase of our work will be the preparation of drafts and the final task force reports and the dismissal of all the people who are working on this. We have not arrived at that phase yet. We are gradually, and hopefully speedily, approaching it. That will handle the resolution of this whole effort.

In addition, the management office, which I have been trying to describe to you, provides each task force with operating guidelines, report formats-how we would like them to give reports to uspreparation instructions, and disclosure and conflict-of-interest guidelines. We have given all the task forces this material.

You have requested, Mr. Chairman, that we discuss the nature and purpose of the task force work plans. I would like to describe them for you briefly. They are basically management tools, of which we have a number, which are designed to assist the task force in planning their work, in identifying areas they will study. They are used for purposes of setting deadlines, and we are examining them as they are submitted. They also outline the work they need to do to recruit additional people. So they are a multipurpose kind of work plan. Naturally, these work plans change, and as a matter of fact, they have been changed by the different task forces as they pursue their inquiry. Some of the areas they thought would be interesting, when they get into them they find there is not much use in pursuing it, and they change them. Others they find may be of interest. So they are really fluid documents for work purposes.

The task force survey activities are monitored as they proceed by on-site review of their operations, weekly desk office meetings, biweekly project manager meetings, frequent discussions with agency officials, draft and final report processes, and other techniques. We are trying to give them all guidance as to the form in which we would like them to come forward with their final report, so that there will be a consistency of material and presentation of these different final recommendations from the task forces.

You mentioned in your letter, Mr. Chairman, the agreement with the Department of Commerce. Pursuant to the Executive order which I have mentioned, No. 12369, a cooperative agreement has been signed between the Foundation for the President's Private Sector Survey, Incorporated, and the Commerce Department. The agreement facilitates the work of the survey and insures coverage of its activities by the various pertinent laws. The Secretary of Commerce has agreed to cooperate with and provide such assistance as may be necessary to enable the foundation to carry out its responsibilities in an efficient and timely manner, to act as a liaison between the foundation and the Federal agencies which are being reviewed, and to arrange with the General Services Administration to make available for use by the foundation during the term of the agreement such surplus furniture and other office equipment as may be available.

Parenthetically, I would say that we did get some furniture, but that is about the sum total of all the contribution by the Federal Government.

The foundation I have mentioned is a charitable not-for-profit corporation that can receive financial contributions, gifts in kind, and volunteer services. The foundation has agreed, at no outlay by the Government, to provide support to the Executive Committee and management office in carrying out their responsibilities. The foundation has received contributions from 187 companies, totaling approximately $1,800,000, and these funds are being used to cover basically the administrative costs of the management office, specifically rent for office space, rent for furniture, for equipment, to defray telephone bills, computer equipment, services, stationery, and some employees, staff support.

Upon termination of the agreement with the Department of Commerce, the foundation will turn over to the Secretary of Commerce all materials, data, and information in its possession which pertain to the work done by the foundation for the executive committee.

As you will recall, Mr. Chairman, the President requested that the survey be entirely financed by the private sector. I believe the survey, therefore, is unique in this respect. I am not aware of any other commission or survey that has financed itself and has not been financed by the Government. All members of the executive committee, the desk officers, the project managers, and all members of the task forces are serving without cost to the Government. All their compensation and expenses, including their travel, hotel, and other expenses, are paid for by the private sector. Accordingly, this project necessarily will result in a very large expenditure funded by the private sector. In summary, of the approximately 1,200 people on the survey, who have been furnished and paid for

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