The main objectives of Project BALLOTS (Bibliographic Automation of Large Library Operations Using a Time-Sharing System) are to control rising technical processing costs and, at the same time, to provide improved levels of service. This report on BALLOTS Phase II is concerned with the development and implementation of the production library automation system - the system that will support the day-to-day operations of the library. The report is divided into four parts. Chapter 1 gives some background for the report and summarizes the nature of the BALLOTS system, as well as its status at the end of the reporting period (June 1971). Chapter 2 describes development progress in two different areas: the bibliographic services and system design as seen by the user; and the software and hardware design to support these services (including video terminal selection and screen design). Chapter 3 describes the major standards and analytic studies completed during the design. Each of these standards or studies became a part of the design, or had a substantial effect on the user, hardware, or software design described in Chapter 2. Chapter 4 describes the activities currently under way (following the reporting period) and future plans. (BALLOTS Phase I Final Report is available as ED 049 786) (Author/SJ)