Alternative management procedures are recommended that may lower the rate and magnitude of errors in the award of the Basic Educational Opportunity Grants (BEOGs), or Pell Grants. The recommendations are part of the BEOG quality control project and are based on a review of current (1980-1981) levels, distribution, and significance of error in the program and the assessment of the policy context of quality control. Analysis of the levels and kinds of error currently apparent in the program reveals that errors made by students and institutions each account for about one-half of the program error. Only a very small fraction of the total is attributable to the application processors. BEOG error is placed in perspective by considering other similar federal programs. Corrective actions of two kinds are recommended. The first consists of mechanical actions to make marginal changes in the current delivery system. An example of such actions would be requiring stricter academic progress regulations for BEOG recipients. The second consists of major structural changes in the way grants and other federal aid are delivered to students. Recommendations are offered regarding applicant, institution, and processor, problems. The recommendations are related to the role of the Office of Student Financial Assistance and other federal agencies involved in the delivery process. In addition, the decision steps necessary before developing a structural redesign of the federal aid delivery system are addressed, along with potential outcomes of a redesign effort. A sample Basic Grant application form for 1980-1981 is included. (SW)