Packard Commission

By the mid-1980s, the spending became a scandal when the Project on Government Oversight reported that the Pentagon had vastly overpaid for a wide variety of items, most notoriously by paying $435 for a hammer,[1] $600 for a toilet seat, and $7,000 for an aircraft coffee maker.

[1] In response to the scandals, Reagan appointed a commission, chaired by Packard, to study government procurement undertaken by the US Department of Defense.

The Commission had Packard, Ernest C. Arbuckle, Robert H. Barrow, Nicholas F. Brady, Louis W. Cabot, Frank Carlucci, William P. Clark Jr., Barber Conable, Paul F. Gorman, Carla Anderson Hills, James L. Holloway III, William Perry, Robert T. Marlow, Charles J. Pilliod Jr., Brent Scowcroft, Herbert Stein, and R. James Woolsey Jr.[3] The President tasked the Commission with studying defense management policies and procedures, including the budget process, the procurement system, legislative oversight, and the organizational and operational arrangements, both formal and informal, among the Office of the Secretary of Defense, the Organization of the Joint Chiefs of Staff, the Unified and Specified Command system, the Military Departments, and the Congress.

[4]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, "whistleblower" reporting mechanisms, an increased public accountability, anonymous evaluation questionnaires to be synthesized by the internal audit functions and by external and independent agencies.

[5] 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 over-expenditures but rather "the truly costly problems are those of overcomplicated organization and rigid procedure.