In 1993, the Minneapolis School District entered into a 3-year contract with a private company, Public Strategies Group (PSG). Under the contract, the president of PSG was to serve as the district superintendent and meet certain goals and objectives determined by the district. This paper presents findings of an evaluation of the Minneapolis/PSG collaboration. Data were derived from a review of the contract and supporting documents, a site visit, and interviews. After 18 months, the Minneapolis School District determined that the company had achieved most of the contract goals and paid PSG $473,000 or 66 percent of the $716,500 that PSG was to receive under the contract if it fully achieved each goal. Outcomes for which PSG was paid included a decline in the suspension rate, increased attendance, and increased family involvement. PSG also received payment for developing baseline measures to assess student performance, identifying the predictors of effective teaching, and developing a strategic plan for the district. The company did not receive payment for unimproved student test scores and unsatisfactory negotiation of the teachers' contract. The Minneapolis/PSG contract remains in effect. The most recent report showed that most goals were met in the fourth quarter of 1996. Students enrolled for at least two test periods made gains in reading and mathematics on the 1996 California Achievement Tests. (LMI)