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This paper will research and review the following issues. What is privatization and outsourcing? How does it work under the current statutory and regulatory framework. How do you measure "success" for the military in this area? Who is the "customer" and how do you decide if they are satisfied with the results? If money is saved through privatization, but the Congress and/or OSD does not allow the Air Force to keep the funds for modernization, is this still a "success?" What will be the effect on Air Force (e.g., military) culture of widespread privatization and outsourcing? The methodology for research will be based upon scholarly publications, interviews with past and present Air Force leaders, and a comparison with outsourcing efforts in the private sector.