The Race to the Top Assessment program was authorized as part of the American Recovery and Reinvestment Act of 2009 (ARRA). In September 2010, the U.S. Department of Education (Department) awarded competitive, four-year grants to two consortia of states, the Partnership for Assessment of Readiness for College and Careers (PARCC) and the Smarter Balanced Assessment Consortium (Smarter Balanced). The Department used the information gathered during the program review process (e.g., through monthly calls, an on-site visit conducted in August 2012, and the consortium's annual performance report (APR) which was submitted in August 2012) to draft this report on the consortium's year two implementation of the Race to the Top Assessment program. This report serves as an assessment of the consortium's overall implementation of its approved plan, highlighting successes and accomplishments, identifying challenges, and noting important lessons learned by the consortium during the second year and key activities anticipated in year three. The report is focused on the four primary components of the consortium's activities: governance; assessment design and development; professional capacity, outreach, and communications; and technology. The report focuses on the second year of the grant, from November 2011 through the end of December 2012 unless otherwise noted. Progress subsequent to that time will be reflected in the year three report.