This study of performance contracting was made in 1974-75. It differs from other studies in that it is based on a comprehensive body of data, including information about state-supported contracts in Michigan and California; it is focused on the role of monetary incentives in education rather than on the particular instructional programs; it made a special effort to collect information about teacher-contracted projects; and it is especially concerned with the long-run effects of performance contracting in the districts where it has been tried. The data base consists of interviews held in ten school districts and at three state departments of education, and with representatives of three private firms; documents furnished by the school districts and the state departments; and 42 responses to a questionnaire sent to the 79 school districts which were apparently all that might ever have had a performance contract (other than the ten in which interviews were held). The questionnaire used in the study is included. A five-page summary of the study is appended. (Author/RC)