An observational monitoring system is described for evaluating preschool programs and providing feedback to relatively untrained caregivers in order to encourage program improvement in the social and cognitive realms. The system utilizes a simple one page observation form for teachers and children detailing interaction and type of activity. Data are collected through accumulation of instantaneous observations with high interobserver reliability. Results show strong differences among three distinctive urban preschool settings, especially in teachers' behavior and children's sociometric patterns. The system's stress on simplicity and feedback should serve as a widely applicable formative evaluation tool for day care and nursery school settings. (Author)