EO 12574Executive OrderReagan · R

Executive Order 12574

Establishing an experimental program within the President's Commission on Executive Exchange

This executive order establishes a small experimental program allowing federal agencies to accept voluntary services from private sector executives participating in the Executive Exchange Program. Running from fiscal years 1987-1989, it caps participation at 10 individuals per fiscal year and excludes them from standard federal employment benefits (pay, leave, retirement, insurance).

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Impact dates

  1. Program concludes (end of FY 1989)

  2. FY 1989 begins (final program year)

  3. FY 1988 begins (second program year)

  4. Program effective date

  5. FY 1987 begins (first year program operational)

Key directives

  • Establish experimental program for voluntary private sector services in Executive Exchange Program
  • Effective October 1, 1986
  • Limit to 10 individuals commencing participation per fiscal year
  • Prohibit displacement of government employees
  • Exclude participants from Title 5 chapters 51, 53, 63, 83, 87, 89 (classification, pay, leave, retirement, life insurance, health benefits)

Timeline

Immediate

  • Program effective October 1, 1986

Near term (90d)

  • Agencies may begin accepting voluntary services under experimental program

Long term

  • Program runs through fiscal year 1989 (ends September 30, 1989)
  • Potential expansion or termination based on experimental results

Risks & tensions

  • Small scale (10 per year) limits systemic impact but raises questions about administrative burden relative to benefit
  • Exclusion from standard federal employment protections may create liability or equity concerns
  • 'Displacement' prohibition vague—unclear how agencies define or enforce non-replacement of existing employees
  • Experimental nature suggests temporary; unclear evaluation criteria for continuation
Executive Order 12574: Establishing an experimental program within the President's Commission on Executive Exchange · Executive Orders