Roles to be played by institutions of higher education in the face of federal regulation are examined in this summary speech at the National Center for Higher Education Management Systems. Focus is on suggestions for pursuing academe's value imperatives with maximum support and minimum interference from the federal government. Some elements of a strategy for dealing with the federal presence are oulined, including: assume that there is no way to get government out of higher education; seek to establish the "test of necessity" written into the Education Amendments of 1976 and encourage Congress to apply this test consistently; apply expertise in cost-benefit analysis; share findings and methods of collecting and analyzing data on federal impact; devise a practical and credible mechanism for self-regulation; develop a systematic process for identifying problem areas where there are no generally recognized standards and develop consensus on standards that can be articulated for the entire community; and establish a Commission of Administrative Standards and Procedures, with appointive representation from each of the national higher eudcation associations. (LBH)