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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.

This report is part of the RAND report series. The report was a product of RAND from 1948 to 1993 that represented the principal publication documenting and transmitting RAND's major research findings and final research.

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