The competency based teacher education (CBTE) program at the University of Toledo (Ohio) is constructed around ten basic goals which are behaviorally stated and cover the fundamental tenets of the American educational system. To evaluate the program, the goals were examined in relation to five contexts which were identified as being of major importance to teacher education: (1) instructional organization; (2) educational technology; (3) contemporary learning-teaching processes; (4) societal factors in schooling; and (5) and research. Two observational systems were used to assess student teaching experiences. One required the observer to make substantial inferences as to what competencies were being demonstrated by the student teacher and the quality of the demonstration. The behavior of the teacher was not recorded. The observer worked from a stated set of indicators and descriptors for the competencies to be measured and made a judgment as to how well teacher performance fit the indicators and descriptors. The other assessment method involved observing and recording specific teacher and student behaviors. In this description of the evaluation process a chart is included illustrating the structure of the University of Toledo CBTE program and a conceptual diagram of the elements involved in teacher research and evaluation. Two graphs offer profiles of the mean competency scores for the university's student teachers obtained by the two methods of observation used in the study. (JD)