This report submitted by Advocate Team No. 2 to the U.S. Office of Education, Division of Research and Development Resources (formerly Division of Manpower and Institutions) presents a proposed evaluation system for regional labs and R&D centers consisting of a two-tiered panel organization. The tiers are: (1) A Master Panel--a blue-ribbon advisory group chosen from designated specialist groups; and (2) A series of Specialist Panels that submit site-visit and other reports to the Master Panel. (Author/MS)