198983 Baz9 7/:8/83 CONTENTS Page Felix E. Larkin, member, Executive Committee of the President's Private Sector Survey on Cost Control, accompanied by J. P. Bolduc, Chief Letter from the survey transmitting balance sheet and income statement for the Foundation for the President's Private Sector Survey on Cost Letter from survey transmitting task force workplans. General Accounting Office material submitted to the committee: General Accounting Office report on the President's Private Sector Memo from Fred Fielding to Executive Committee members on con- flict of interest with Commerce's Standards of Conduct attached, (ni) General Accounting Office material submitted to the committee-Continued Agreement on disclosure of information that task force members sign Survey Management Information Report, August 13, 1982 position, and position held with the task force survey.. General Accounting Office opinion..... Tabulation showing personnel from corporations, employee name and Page 316 319 321 323 344 353 357 358 361 362 372 376 389 380 PRESIDENT'S PRIVATE SECTOR SURVEY ON COST CONTROL IN FEDERAL GOVERNMENT WEDNESDAY, SEPTEMBER 15, 1982 HOUSE OF REPRESENTATIVES, COMMITTEE ON POST OFFICE AND CIVIL SERVICE, Washington, D.C. The subcommittee met, pursuant to notice, at 10:18 a.m., in room 311, Cannon House Office Building, Hon. William D. Ford (chairman of the subcommittee) presiding. The CHAIRMAN. The Subcommittee on Investigations of the Post Office and Civil Service Committee meets this morning to take a look at how the President's Private Sector Survey on Cost Control in the Federal Government is progressing. In opening his press conference last February 18, the President announced his intention to launch an extensive private sector investigation of inefficiency in the Federal Establishment. Later, in March, the President asked J. Peter Grace, chairman of W. R. Grace & Co., to head a committee that would look into every nook and cranny of Government to ferret out wasteful procedures. The Executive order formally establishing the machinery for the Survey came on June 30. At that time, there were a few detailed news accounts about Mr. Grace and his mission. Since then, however, there has been a paucity of information. about the private sector investigators and the work they are doing, except from concerned employees and managers in agencies of Government who, for some time, have been sending inquiries to our committee to find out why they were being asked to do certain things, which brought this matter to our attention. At the outset, I would like to make it clear that the Subcommittee on Investigations has no reason to believe that there is any deliberate attempt to conceal the activities of the study. It is just that nobody has noticed them until very recently. But given the scope and mission of this large and ambitious undertaking, we feel there is a need for Congress to know much more than it does about how the inquiry is developing, who is doing the work, and the methods that are being employed. Quite frankly, we are in the dark about what is going on. I hope that today's witnesses will remedy that situation for us. The reason for the subcommittee's keen interest is readily apparent. The Committee on Post Office and Civil Service has jurisdiction over at least two of the entities that we know are being scrutinized by the study group at the present time-the U.S. Postal Serv (1) ice and the Office of Personnel Management being two of the agencies where we have had numerous inquiries. Moreover, the results of the President's Survey could have a deep and lasting impact on the entire Federal work force, which clearly falls within the committee's purview. We would be remiss in our duty if we failed to inquire about how such an indepth survey is progressing and along what lines. In his Executive order, the President pointed out that the work of the private sector investigators would have to be completed by December 31, 1982, to comply with the Federal Advisory Committee Act, which we assume covers activities of the study group. That apparently was assumed in the announcement by the White House. So there is not very much time for the Congress to find out how the project is moving along. We are facing imminent adjournment before the elections of November. As we understand the structure, there is an executive committee, of which Mr. Grace is chairman. This committee has about 125 members, most of whom are executives in large corporations. There is a private foundation that solicits funds from large corporations and has a contract with the Commerce Department for the study. In addition, there are 35 separate task forces, each assigned the task of studying a specific department or agency. I am not sure, and we will find out this morning, whether the task forces are assigned by department or agency or by function, but we think that most of them are by department or agency. It is our understanding that there are about 1,000 task force members, most officers from private corporations, at work across the landscape of the Federal Government. The committee is especially interested in getting some idea about who these people are, their methods, and their assigned missions. We are interested, as well, in the arrangement with the Department of Commerce, the funding of the overall operation, and the involvement of agency personnel and facilities. We also would like an insight into how various members are cleared for security and how they are screened for potential conflicts of interests. I am confident that today's witnesses can shed some much needed light on the activities of the different groups involved in the President's Survey. Our first witness will be Mr. Felix Larkin, a member of the executive committee. I want to say that we thank Mr. Larkin for accommodating the committee. We invited Mr. Grace, chairman of the executive committee, but he could not appear because of business commitments. Thus, Mr. Larkin had to appear on very short notice. The committee is appreciative, Mr. Larkin, of your willingness to respond in a positive way so quickly after our request. You may proceed, if you have an opening statement, or if not, we will proceed with questions, whichever you prefer. |