One of seven guides developed to assist vocational-technical institutions in conducting a systemized approach to local evaluation, this follow-up and cost effectiveness guide provides a suggested procedure for conducting a needs assessment from the external sources of former students. This guide also suggests various uses of extant enrollment and placement data that should be available within the local institution. Also included is a cost-effectiveness computational method that may be used for relative comparison of institutional programs. The matrix included depicts the factors and indicators assessed by these sources and also includes the derivation of instruments used in the assessment process. The guide is divided into four sections: (1) goals and objectives; (2) procedures for administration; (3) procedures for data analysis; and (4) model instruments and documents. All seven guides are a part of an assessment model developed by project LEAP (Local Educational Assessment Program) and are designed to assist the local institution in organizing and delivering an evaluation program that produces institutional, program, and individual improvement in the educational process. (BM)