This study of the relationship between academic science and the federal government was undertaken at the request of the NAS membership at the annual meeting of 1963. Three main elements were considered: the federal government, institutions of higher education, and the scientific community, most of whom were also members of teaching faculties. Among the major questions considered are: what are the policies by which accountable support can effectively advance scientific inquiry in the common interest; and how can inaccurate conceptions of both necessary freedom for scientific research and the accountability of funds be prevented from stifling the fruits of research? The discussion covers: The Role of Basic Research and the Scientist in Mid-Twentieth Century America; The Heritage Available in 1939; World War II, The OSRD Creates the Interrelated System; The Government-University Alliance, 1945-1950; Maturation of the System, 1950-1957; After Sputnik; Profile of the Government's Present Role in Science; Principles for the Project System; and The Role of the Institutions of Higher Learning in the Operation of the Project System. (JS)