The Peer Evaluation Program (PEP) has been instituted by the Division of Special Education, Pennsylvania State Department of Education, to allow intermediate units an opportunity to continuously improve their programs. The advantages of the PEP system are: (1) it is a self-improvememt system of program development; (2) PEP allows local autonomy as to what changes are to occur; (3) PEP builds into the evaluation structure a deliberate mechanism for the change process and for implementing strategies derived; (4) feedback is meant to be formatively specific rather than descriptively general; (5) PEP serves valuable in-service and consultation function; (6) there is participation of all staff members at the local level; and (7) many changes can be identified that require no increase in resources. General procedures of the program are outlined; these relate to: Pre-Visit Preparations (internal evaluation, selection of evaluators, requested time lines, in-service programs, internal reports, and selection of evaluation team members); Arrangement for On-site Visits; On-site Visits (arrival, procedures, and post-visit feedback); Change Mechanism for Implementing Recommendations (local team, final disposition of "change strategies," implementation and monitoring of board resolutions). The most important single component of the PEP is the selection of the evaluation team; criteria for selecting the members are provided. Two evaluation forms are included: "Teacher Input for Self Evaluation" and "Criteria for Use in Both Self- and Peer-Evaluations." A flowchart of the PEP is provided. (DB)