This document describes a project conducted to develop an approach to competency-based adult education (CBAE) for Montana adult basic education (ABE) programs. As effort continued on the project, a series of competencies related to adult student outcomes in the areas of reading, mathematics, and language arts were developed. The processes involved in developing the model for implementation included a literature review of CBAE research, a critique of the proposed process from educators outside the State of Montana, and a workshop session to involve practitioners from various settings throughout the state, out of which was derived the revised model and a listing of preliminary competencies. This document presents the preliminary model for CBAE in ABE classrooms. It also includes a partial list of competencies viewed as important by adult education practitioners and a proposal for statewide implementation of CBAE. Seventeen references are included. (KC)