This paper highlights some of the issues concerning the transfer of Research and Development (R&D) Centers from the Office of Education to the National Institute of Education (NIE). The problems of transition to the new policy and organization are discussed with regard to program objectives and management and problems associated with implementing fiscal year 1973 (FY 73) funding requirements. The issues considered in relation to program objectives are a) the need for specialized R&D centers; b) the maintenance of a special relationship between NIE and R&D centers; c) NIE support of improvement in R&D management and technology; and d) achievement of a balance in policy conflicts regarding flexibility vs. continuity, mission focus vs. conglomeration, and research vs. development. Program management issues discussed are a) coordination of policy implementation; b) completion of design of the assessment system for the new policy; c) budgeting, organization, and management of product dissemination; and d) the requirement that universities cost share in the support of R&D centers. Problems of implementing the FY 73 funding requirements are identified as being concerned with: a) consistency between funding recommendations and program policy, b) the negotiation process, c) contract/grant terms and conditions, and d) the increased cost of the new policy. The author concludes that FY 73 should be considered a year of transition during which NIE carefully and deliberately moves to establish a lasting program. (HMD)