In order to evaluate proposals seeking state funds from the Division of Occupational Research and Development of the Texas Education Agency for pilot vocational education programs for the handicapped, there must first be a specific state plan. This state plan should clearly specify first and fifth year goals and resolve whether the primary emphasis is to be integration of special education students into regular vocational classes or maintenance of separate vocational classes for these students. Once the plan has been developed, program priorities can be determined and disseminated to school districts, and local education agencies can be encouraged to submit proposals. Should a proposal fit within the framework of the state plan, it should be evaluated to determine whether it includes the necessary elements and clearly answers such questions as: (1) What is to be done, (2) When is it to be done, (3) Who is responsible, (4) How will it be done, (5) Who are the recipients, (6) What is the desired outcome, and (7) How will the outcome be measured. Sections of this manual discuss the necessary proposal elements and provide an expanded list of questions to use when evaluating a proposal. Sample proposal formats are appended. Related documents are available as VT 019 703, VT 019 712, and VT 019 714 in this issue. (SB)