As the basis for developing a criterion referenced test (CRT) construction manual for the Army and for identifying potential research areas, a study was conducted which included a review of the technical and theoretical literature on criterion referenced testing and a survey of CRT applications at selected Army installations. It was found that the use of CRT's was limited, although some serious attempts were being made to develop and administer them. Progress was noted in such areas as equipment related skills, but little evidence of CRT development was found in "soft skill" areas or in team performance situations. There was general consensus that clearly-written CRT construction guides were needed. Difficulties were observed in CRT development and use: lack of task analysis data and well-defined objectives; inattention to prioritizing tasks; disregard for practical constraints; insufficient number of items in the item bank for alternate test forms and lack of item analysis techniques; omission of test reliability and validity studies; and lack of standardized testing conditions. (A lengthy bibliography and appendices, including the interview form, summary of types of individuals interviewed, and quantitative data gathered at each installation, are provided). (MH)