To assist the Air Force in developing a strategic sourcing policy, we have examined the economics and business management literatures to find theories and evidence regarding the "insourcing vs. outsourcing" or "make vs. buy" decision; and, given the decision to outsource, how best to conduct source selection, contracting, and post-contract management. This report, originally prepared as a briefing, synthesizes the results of our literature review and discusses implications for Air Force outsourcing policy.