This feasibility study of the computer system of the Department of Education's Office of Impact Aid (OIA) was conducted to (1) assess the capabilities, as well as the drawbacks, of the current system and the other components of OIA's data processing activities; and (2) explore alternative computer systems, based on available technology and current needs of the program, which would enhance effective management and operation of the Impact Aid program. The first section of this report provides a description of the Office of Impact Aid and its current data system. The requirements for an alternative data system are discussed in the second section. The third section discusses the key factors that must be considered for a new system, and proposes two alternative systems, one a mainframe-based database management system, and the other a mainframe/microcomputer system with a local area network. Finally, the fourth section outlines the steps that should be followed in implementing an alternate computer system. Diagrams and attachments are appended to provide further clarification. (GL)