Jan 1, 1986
The requirements of the 1985 Gramm-Rudman-Hollings Act or other budgetary constraints could lead the Air Force to consider terminating some procurement and research-and-development programs. This report analyzes the obstacles to the Air Force's use of termination as a management option and suggests how the Air Force might surmount these obstacles. The analysis is based on a review of (1) the literature on the barriers to termination that private-sector firms and government agencies face in trying to terminate major activities; (2) the Air Force's planning and resource-allocation process; and (3) the experience of large private firms that had terminated or divested major businesses. The report neither advocates termination for its own sake nor argues for its use in a particular case. The Air Force may conclude that initiating its own terminations may be the best way to keep control over basic decisions about its missions and character.