Question

List the events that lead to the Packard Commission. Explain why it was needed and how it changed the way of government accounting.

Answer 1

The President's Blue Ribbon Commission on Defense Management, also known as the Packard Commission, a federal government commission by President Ronald Reagan, was created by Executive Order 12526 in 1985 to investigate the areas of management functionality within the US Department of Defense. The commission was chaired by David Packard. According to the US States Congress House, For improving the defense acquisition, the Packard Commission was formed. There were many suggestions regarding the defense acquisitions like the creation of a full-time manager below the Under Secretary of Defense for Acquisition, streamlining the channel of command for program managers, and creating a decision-making organization to improve the quality of defense equipment buying and development decisions. These led to the creation of a function called program executive officer. To achieve stability in defense, and to assist in the executive and legislative branches and efficient use of defense funds, and for maintaining a strong industrial base, the Packard Commission was formed.

The Packard commission recommended to the contractors to adopt and monitor their own ethical standards. It investigated the budget process, procurement, operational arrangements, military departments, and Congress. The recommendations by the commission were used in the reforms of Joint Chiefs of staff in 1986. They created the best practices forum to cut overhead expenses and avoid catastrophic cuts in military abilities. They reduced the excess infrastructure, shrank the workforce size, and altered the compensation system. It led to good governance and a national security imperative.