A 3-year project was undertaken to assist states in facilitating the development of a needs assessment management system in special education with a specific focus on the needs of physical educators serving handicapped students. During the first year the project staff met with state education agency personnel responsible for the Comprehensive System of Personnel Development (CSPD) program and reviewed the CSPD portion of all State Plans submitted to the Office of Special Education and Rehabilitation Services. They were then able to produce a functional needs assessment product, including a manual and software, with enough flexibility to meet unique needs identified in each state. The second and third years of the project were spent assisting states to implement the SpecPE Needs Assessment Management System through both regional and on-site training programs. Direct training was provided to personnel in the contiguous 48 states, Alaska, and Puerto Rico. Hawaii and the trust territories were provided all project materials plus a videotape covering all training sequences which have also been provided to each of the Regional Resource Centers. Throughout the duration of the project, nationwide open communication was maintained by project administration of the SpecPE Bulletin Board through the SpecialNet electronic network. The report contains a general overview of the project, a description of methods and procedures, a table summarizing physical education services for special education students, a list of trainees by state, and a sample state analysis plan. The bulk of the document consists of a series of appendixes. They include (1) excerpts from monitoring instruments; (2) a National Consortium on Physical Education for the Handicapped position paper; (3) dissemination and SpecialNet materials; (4) sample pages from the SpecPE manual; (5) the original data collection instrument for the project; (6) requests for information and project materials; (7) a sample state analysis plan; (8) evaluation forms and letters; and (9) videotape scripts developed by the project. (VW)