One of a series of nine reports of Project ACTIVE (Attaining Competence for Teaching in Vocational Education), this report focuses on the criteria for assessing mastery of the professional competencies (skills) important to vocational educators serving handicapped students. An overview of competency-based vocational teacher education (CBTE) and the exemplary CBTE project is provided. Part 1 describes the competency identification phase of the handicapped education component including review of related research, report of a questionnaire survey of Florida vocational educators applying for funds for programs for the handicapped, findings (competencies with mean importance ratings), and conclusions. Part 2 describes the procedures for identifying and validating of specific criteria for assessing mastery of the competencies and lists the criteria in a 12-page table under 90 competency statements grouped into the following categories: (1) Program planning, development, and evaluation, (2) instructional planning, (3) teaching methods-media, (4) student evaluation, (5) management, (6) guidance, (7) school-community relations, (8) student organizations, (9) instructor's professional role and development, and (10) unique competencies. It is suggested that grouping of competencies for use in a preservice or inservice program can be accomplished based on the unique needs of participants and the objectives of the particular programs. Appendixes contain instruments used in the study. A bibliography is included. (TA)