The problem of cost growth in major weapon system acquisition programs has plagued the Department of Defense for several decades. This report examines the Air Force experience with should-cost reviews--a special form of contract cost analysis intended to identify contractor inefficiencies and lower costs to the government--and options for enhancing the Air Force's capability to conduct such reviews.

Are there feasible alternatives to the present "up-or-out" policy for U.S. military officers? Most military officers are subject to a policy known as "0up-or-out," which requires separation from service if they are not promoted or selectively continued within a certain period of time or when they encounters established grade/tenure limits. RAND considered a range of potential substitutes for, or modifications of, the existing policy and recommends that the Department of Defense implement four demonstration projects to establish the relative value of specific policy alternatives and requirements.

Recommends alternative promotion models to address the high turr over of the military's general and flag officers. The Department of Defense (DoD) experiences a high turnover from its general and flag officers (G/FOs). A concern exists that simply lengthening the stay of senior officers will only clog the system, stagnating promotions through out the entire officer corps. In response to this, RAND researchers analyzed the current system, reviewed literature on corporate management practices, and modeled different ways of managing G/FOs. In addition to proposing variations to the promotion model, the authors address the concerns expressed by those in DoD and Congress about implementing such changes.