The Department of Defense (DOD) supports basic research to advance fundamental knowledge in fields important to national defense. Over the past six years, however, several groups have raised concern about whether the nature of DOD-funded basic research is changing. The concerns include these: Funds are being spent for research that does not fall under DOD's definition of basic research; reporting requirements have become cumbersome and onerous; and basic research is handled differently by the three services. To explore these concerns, the Congress directed DOD to request a study from the National Research Council (NRC) about the nature of basic research now being funded by the Department. Specifically the NRC was to determine if the programs in the DOD basic research portfolio are consistent with the DOD definition of basic research and with the characteristics associated with fundamental research.