THE COSTS OF TECHNICAL PROCESSING WITHIN A COOPERATIVE LIBRARY CENTER SERVING A NUMBER OF MEMBER LIBRARIES WERE COMPARED WITH COMBINED COSTS OF OTHER NONMEMBER INSTITUTIONS. IT WAS HYPOTHESIZED THAT THE COST PER MEMBER LIBRARY IN A CENTRALIZED SYSTEM FOR A GIVEN QUALITY OF TECHNICAL PROCESSING WOULD BE LESS THAN THE COST OF SIMILAR TECHNICAL PROCESSING PERFORMED BY OTHER INDIVIDUAL LIBRARIES, PRIMARILY BECAUSE CENTRALIZATION WOULD ELIMINATE DUPLICATION OF WORK AND STAFF. THE SPECIFIC CENTER STUDIED DURING THIS PROJECT WAS IN ITS FIRST YEAR OF OPERATION. A THOROUGH ANALYSIS OF THE CENTER'S ACTIVITIES SHOWED DIFFICULTIES THAT AROSE DURING THIS INITIAL PERIOD OF OPERATION AND THE REACTIONS OF ITS MEMBERS TO THE VARIOUS SERVICES PROVIDED. CENTRALIZED PROCESSING DID NOT EFFECT SAVINGS IN ALL CASES. NO MEMBER OF THE CENTER, HOWEVER, ADVOCATED A RETURN TO INDIVIDUAL LIBRARY PROCESSING METHODS. ABOVE ALL, THE CENTRALIZATION PROCESS OBTAINED A CONSISTENT LEVEL OF CATALOGING AND APPEARED TO ALLOW PROFESSIONALS IN THE MEMBER LIBRARIES MORE TIME FOR PUBLIC SERVICES. (JH)