Intended to assist those working in the field of occupational competency testing, this report summarizes major milestones in the history of competency measurement in vocational education and overviews the current state of the art. To provide an orientation to the environment that stimulated the current interest in occupational competency testing, chapters 2 and 3 review competency-based vocational education and discuss evaluation concerns in vocational education. Next, chapter 4 presents some background information along with definitions of a few key terms used in competency testing. The current efforts of a number of organizations in the field of competency testing are reviewed in chapter 5. They are organized into three categories: Department of Education-funded organizations, state agencies and consortia, and job performance assessment in the military. Chapter 6 describes recent developments that merit attention from test developers in vocational education--simulations, adaptive paper-and-pencil tests, confidence testing, and Rasch modeling. The technical and legal problems in setting standards of performance on competency tests are discussed in chapter 7. A 10-page list of references is provided. (YLB)