This document addresses the second objective of a study to develop criteria to measure the effectiveness of vocational education programs. An introduction provides background to the project and the objective addressed here, namely the recommendation of proposal review criteria. Section II discusses development of the recommended criteria, which are intended to distinguish those applications that are predictive of the ability of the application to achieve successful implementation, documentation, and regeneration. Ten proposal review criterion categories are presented in Section III: evidence of need, educational significance, measurable objectives, appropriate activites, efficient management, reasonable budget, appropriate personnel and facilities, technically sound evaluation plan, commitment of applicant organization, and effective dissemination plan. Within each criterion category are several criteria, all of which are characteristics of successful projects. An explanation and rationale are given first in each category. The criteria for the category are then listed with a brief explanation for each one. Section IV details proposal review procedures. The proposal review form is provided. (YLB)