This interim report presents the framework for classifying competency-based initiatives developed by the NPEC (National Postsecondary Education Cooperative) Working Group. Section 1 presents a structure for classifying competency initiatives based upon student progression into, within, and from postsecondary education. Key applications of competency definitions and assessment considered by the Working Group occur at intersections or transition points in the schematic. Section 2 presents the Working Group's current thinking with regard to defining, assessing, and applying competencies. Section 3 describes progress made in preparing an annotated bibliography of competency-based initiatives. Section 4 discusses the design of case studies that are being carried out to analyze current practices in assessing and using competencies in postsecondary education. Section 5 presents data and process issues (with sub-issues) identified by the Working Group in the form of criteria or a check list to assist institutions planning or implementing a competency-based initiative. Data issues are the following: (1) the level at which competencies are defined; (2) linking issues; (3) comprehensiveness issues; (4) measurement issues; (5) data maintenance and reporting issues; and (6) portability issues. These are process issues: (1) development processes; (2) involvement processes; (3) training; (4) implementation; and (5) costs. The case study protocol is appended. (YLB)