This report presents the conceptual framework and major features of the new design for the National Assessment of Educational Progress (NAEP) as conducted by Educational Testing Service beginning July 1983. It comprises three major chapters. The first chapter reviews the social and environmental changes that demand reconsideration of NAEP. The new design was formulated to address concerns focusing on performance standards, school effectiveness questions, and broad human resource issues, thereby improving NAEP's relevance to educational policy and practice. The second chapter discusses technical innovations now possible with proven modern techniques that greatly enhance the power and value of the collected data. Sampling by grade as well as by age permits estimates of performance and trends to be reported by both age and grade, thereby allowing direct links to state and local assessments, school practices, and educational policies. The third chapter illustrates ways the new design addresses multiple policy questions, communication with multiple audiences in an effective fashion, linkages to other data sources, enhancement and extension of NAEP services, and engagement of the public on the important educational issue of performance standards. Primary type of information provided by the report: Program Description (Operating Policies); Procedures (Conceptual). (PN)