The report describes the Phase I findings of a two-phase study to determine the applications of commercial contract training to the Navy Training System. The objective of the study is to determine if commercial sources would be cost and training effective alternatives for current and peak Navy skill training requirements. The study was conducted by an interdisciplinary team of engineering, educational, and operations research personnel working for a period of 10 months. A limited number of Navy "hard skills" were selected for analysis as potential candidates for commercial contract training. Representative elements of the Department of Defense, other governmental training agencies, industry, and non-federal post-secondary training institutions were investigated in detail. This report provides a sampling of the various training programs, management systems, technological advances, instructional techniques, and curriculum and financial management practices potentially applicable to the Navy training system. Conclusions describe some of the characteristics and trends in civilian training programs and indicate a generally favorable reception to the concept of commercial contract training. (Author/MDW)