Project IMPACT (Instructional Model Prototypes Attainable in Computerized Training) is a comprehensive advanced development project designed to produce an effective and economical computer-administered instruction (CAI) system for the Army. The computer hardware and software capabilities of the prototype system are described. The components of the computer hardware/software subsystem are discussed in terms of the four main activities they support: administering instruction to students; implementing courses into CAI format; evaluating students, courses, and instructional decision models; and performing administrative functions in a school. Specific courses of instruction, research programs, or instructional strategies are not discussed. Rather, emphasis is placed on the capabilities and overall structure of the system. (Author)