The three service academy prep schools were assessed to determine how well the schools accomplished their missions and whether they were cost effective. A review was performed at seven sites, the: Department of Defense (DOD) and service headquarters, Washington, District of Columbia; Military Academy, West Point, New York; Air Force Academy, Colorado Springs, Colorado; Naval Academy, Annapolis, Maryland; Military Academy Preparatory School, Fort Monmouth, New Jersey; Air Force Academy Preparatory School, Colorado Springs, Colorado; and Naval Academy Preparatory School, Newport, Rhode Island. The DOD, service headquarters, and academy officials were interviewed to determine the schools' missions and obtain their assessment of the schools' accomplishments and the quality of their performance. At the schools, data on demographic characteristics and academic qualifications of students in 1988-89 and 1989-90 classes were analyzed, and information on school curricula and faculty credentials was reviewed. Findings indicated that the schools had varied missions and served civilians as well as enlisted personnel. The prep schools were not adequately assessed. Accreditation was not seen as worthwhile for the schools, faculty credentials varied, and there were no established criteria for assessing schools. Prep school students' achievements and appointment rates varied; graduation and career retention rates reflected service trends. Services' cost estimating methods differed. Establishment of standards and guidelines for estimating costs was recommended. (DOD comments and a draft report are appended.) (YLB)