This volume presents background information on the project and explains the needs and decisions that actuated its implementation. First year activities and some preliminary teaching material on the concept of PPB (planning-programing- budgeting) in education are also described. The major focus is on a description of the proposed system, a clarification of the major concepts and activities, and an introduction to some detailed procedural decisions to be made during the remainder of the project. A related document is EA 003 762. (Author/RA)