The President's Blue Ribbon Commission on Defense Management, informally known as the Packard Commission, was a federal government commission by President
Ronald Reagan
Ronald Wilson Reagan ( ; February 6, 1911June 5, 2004) was an American politician, actor, and union leader who served as the 40th president of the United States from 1981 to 1989. He also served as the 33rd governor of California from 1967 ...
, created by to study several areas of management functionality within the US Department of Defense. The commission was chaired by
David Packard
David Packard ( ; September 7, 1912 – March 26, 1996) was an American electrical engineer and co-founder, with Bill Hewlett, of Hewlett-Packard (1939), serving as president (1947–64), CEO (1964–68), and chairman of the board (1964–6 ...
.
Background
Beginning in 1981, Reagan began an expansion in the size and capabilities of the
US armed forces
The United States Armed Forces are the military forces of the United States. The armed forces consists of six service branches: the Army, Marine Corps, Navy, Air Force, Space Force, and Coast Guard. The president of the United States is the ...
, which entailed major new expenditures on
weapons
A weapon, arm or armament is any implement or device that can be used to deter, threaten, inflict physical damage, harm, or kill. Weapons are used to increase the efficacy and efficiency of activities such as hunting, crime, law enforcement, s ...
procurement
Procurement is the method of discovering and agreeing to terms and purchasing goods, Service (economics), services, or other works from an external source, often with the use of a tendering or competitive bidding process. When a government agenc ...
. By the mid-1980s, the spending became a scandal when the
Project on Government Oversight
The Project On Government Oversight (POGO) is a Nonpartisanism, nonpartisan non-profit organization based in Washington, D.C., Washington, DC, that investigates and works to expose waste, fraud, abuse, and conflicts of interest in the Federal gove ...
reported that
the Pentagon
The Pentagon is the headquarters building of the United States Department of Defense. It was constructed on an accelerated schedule during World War II. As a symbol of the U.S. military, the phrase ''The Pentagon'' is often used as a metony ...
had vastly overpaid for a wide variety of items, most notoriously by paying $435 for a
hammer
A hammer is a tool, most often a hand tool, consisting of a weighted "head" fixed to a long handle that is swung to deliver an impact to a small area of an object. This can be, for example, to drive nails into wood, to shape metal (as w ...
,
$600 for a
toilet seat
A toilet seat is a hinged unit consisting of a round or oval open seat, and usually a lid, which is bolted onto the bowl of a toilet used in a sitting position (as opposed to a squat toilet). The seat can be either for a flush toilet or a dry toi ...
, and $7,000 for an aircraft
coffee maker
A coffeemaker, coffee maker or coffee machine is a cooking appliance used to brew coffee. While there are many different types of coffeemakers the two most common brewing principles use gravity or pressure to move hot water through coffee gr ...
. In fact, these numbers were inaccurate; they were an accounting convenience rather than the actual cost of the materials.
In response to the scandals, Reagan appointed a commission, chaired by Packard, to study
government procurement
Government procurement or public procurement is the procurement of goods, services and works on behalf of a public authority, such as a government agency. Amounting to 12 percent of global GDP in 2018, government procurement accounts for a subst ...
undertaken by the
US Department of Defense
The United States Department of Defense (DoD, USDOD or DOD) is an executive branch department of the federal government charged with coordinating and supervising all agencies and functions of the government directly related to national secu ...
. The Commission had Packard,
Ernest C. Arbuckle
Ernest C. Arbuckle (September 5, 1912 – January 17, 1986) was a business leader who was dean of the Stanford Graduate School of Business from 1958 to 1968.
Biography
Arbuckle attended Stanford University, earning a B.A. in History in 1933. Arb ...
,
Robert H. Barrow
Robert Hilliard Barrow (February 5, 1922 – October 30, 2008) was a United States Marine Corps four-star general. Barrow was the 27th Commandant of the Marine Corps from 1979 to 1983. He served for 41 years, including overseas command duty in Wo ...
,
Nicholas F. Brady
Nicholas Frederick Brady (born April 11, 1930) is an American politician from the state of New Jersey, who was the United States Secretary of the Treasury under Presidents Ronald Reagan and George H. W. Bush, and is also known for articulating ...
,
Louis W. Cabot,
Frank Carlucci
Frank Charles Carlucci III ( ; October 18, 1930 – June 3, 2018) was an American politician and diplomat who served as the United States Secretary of Defense from 1987 to 1989 in the administration of President Ronald Reagan. He was the fi ...
,
William P. Clark Jr.
William Patrick Clark Jr. (October 23, 1931August 10, 2013) was an American rancher, judge, and public servant who served under President Ronald Reagan as the Deputy Secretary of State from 1981 to 1982, United States National Security Advisor f ...
,
Barber Conable
Barber Benjamin Conable Jr. (November 2, 1922 – November 30, 2003) was a U.S. Congressman from New York and former President of the World Bank Group.
Biography
Conable was born in Warsaw, New York on November 2, 1922. Conable was an Eagle Scout ...
,
Paul F. Gorman,
Carla Anderson Hills
Carla Anderson Hills (born January 3, 1934) is an American lawyer and a public figure. A member of the Republican Party, she previously served as the 5th United States Secretary of Housing and Urban Development under President Gerald Ford from 197 ...
,
James L. Holloway III
James Lemuel Holloway III (February 23, 1922 – November 26, 2019) was a United States Navy admiral and naval aviator who was decorated for his actions during World War II, the Korean War, and the Vietnam War. After the Vietnam War, he was poste ...
,
William Perry William Perry may refer to:
Business
* William Perry (Queensland businessman) (1835–1891), businessman and politician in Queensland, Australia
* William H. Perry (businessman) (1832–1906), American businessman and entrepreneur
Politics and ...
,
Robert T. Marlow
The name Robert is an ancient Germanic given name, from Proto-Germanic "fame" and "bright" (''Hrōþiberhtaz''). Compare Old Dutch ''Robrecht'' and Old High German ''Hrodebert'' (a compound of '' Hruod'' ( non, Hróðr) "fame, glory, honou ...
,
Charles J. Pilliod Jr.
Charles J. Pilliod Jr. (October 20, 1918 – April 18, 2016) was an American business executive and diplomat.
He was ambassador to Mexico from 1986 to 1989.
Biography
Pilliod served in World War II from 1942 to 1945 as a pilot in the 20th Air F ...
,
Brent Scowcroft
Brent Scowcroft (; March 19, 1925August 6, 2020) was a United States Air Force officer who was a two-time United States National Security Advisor, first under U.S. President Gerald Ford and then under George H. W. Bush. He served as Military Assi ...
,
Herbert Stein
Herbert Stein (August 27, 1916 – September 8, 1999) was an American economist, a senior fellow at the American Enterprise Institute, and a member of the board of contributors of ''The Wall Street Journal''. He was the chairman of the Council ...
, and
R. James Woolsey Jr. The President tasked the Commission with studying defense management policies and procedures, including
Before the 1986 ''Final Report'', 33 competitors of the military industry sector gave life to the Defense Industry Initiative, a pact which planned the adoption of
code of ethics
Ethical codes are adopted by organizations to assist members in understanding the difference between right and wrong and in applying that understanding to their decisions. An ethical code generally implies documents at three levels: codes of bus ...
, "
whistleblower
A whistleblower (also written as whistle-blower or whistle blower) is a person, often an employee, who reveals information about activity within a private or public organization that is deemed illegal, immoral, illicit, unsafe or fraudulent. Whi ...
" reporting mechanisms, an increased public accountability, anonymous evaluation questionnaires to be synthetized by the
internal audit
Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization's operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to ...
functions and by external and independent agencies.
Recommendations
The Packard Commission reported that there was "no rational system" governing defense procurement, and it concluded that it was not fraud and abuse that led to massive overexpenditures but rather "the truly costly problems are those of overcomplicated organization and rigid procedure."
The Commission made several recommendations:
* defense
appropriations should be passed by the
United States Congress
The United States Congress is the legislature of the federal government of the United States. It is bicameral, composed of a lower body, the House of Representatives, and an upper body, the Senate. It meets in the U.S. Capitol in Washing ...
in two-year budgets, rather than annual appropriations bills
* the creation of a "procurement czar," to be known as the
Under Secretary of Defense for Acquisition
The Under Secretary of Defense for Acquisition and Sustainment, or USD(A&S), is the Principal Staff Assistant (PSA) and advisor to the Secretary of Defense for all matters relating to acquisition and sustainment in the Department of Defense. Th ...
and the creation of a clear hierarchy of acquisition executives and managers in each of the services
* the
theater commanders should report directly to the
United States Secretary of Defense
The United States secretary of defense (SecDef) is the head of the United States Department of Defense, the executive department of the U.S. Armed Forces, and is a high ranking member of the federal cabinet. DoDD 5100.1: Enclosure 2: a The s ...
through the
Chairman of the Joint Chiefs of Staff
The chairman of the Joint Chiefs of Staff (CJCS) is the presiding officer of the United States Joint Chiefs of Staff (JCS). The chairman is the highest-ranking and most senior military officer in the United States Armed Forces Chairman: app ...
* the powers of the Chairman of the Joint Chiefs of Staff should be strengthened
On April 1,1986, Reagan signed
National Security Decision Directive
National security directives are presidential directives issued for the National Security Council (NSC). Starting with Harry Truman, every president since the founding of the National Security Council in 1947 has issued national security directive ...
219, an executive order that implement the commission recommendations that could be put in place solely by presidential action. Other recommendations which required legislative action were enacted when
Congress
A congress is a formal meeting of the representatives of different countries, constituent states, organizations, trade unions, political parties, or other groups. The term originated in Late Middle English to denote an encounter (meeting of a ...
later reformed the
Joint Chiefs of Staff
The Joint Chiefs of Staff (JCS) is the body of the most senior uniformed leaders within the United States Department of Defense, that advises the president of the United States, the secretary of defense, the Homeland Security Council and the ...
system in 1986 with the
Goldwater–Nichols Act
The Goldwater–Nichols Department of Defense Reorganization Act of October 4, 1986 , (signed by President Ronald Reagan), made the most sweeping changes to the United States Department of Defense since the department was established in the ...
.
The FASA of 1994 and the Federal Acquisition Improvement Act of 1995 rewrote the government procurement regulations.
See also
*
Public administration
Public Administration (a form of governance) or Public Policy and Administration (an academic discipline) is the implementation of public policy, administration of government establishment (public governance), management of non-profit establ ...
*
Presidential Commission (United States)
References
External links
Documents from the Packard Commission stored in the National Defense University Library
{{Authority control
United States Presidential Commissions
United States Department of Defense
Presidency of Ronald Reagan