This report submitted by Advocate Team No. 1 to the U.S. Office of Education, Division of Research and Development Resources (formerly Division of Manpower and Institutions) presents a proposed evaluation system for R&D institutions and programs. It includes: (1) an organizational framework within which the evaluation system could function; (2) procedures to be followed in implementing the evaluation system; and (3) a set of criteria and related guidelines for use in applying the proposed evaluation approach. (Author/MS)