This study evaluated a pilot project for privatizing or outsourcing remedial education programs in the state of Maryland. The program was conducted by the mathematics department at Howard Community College and Sylvan Learning Systems, a Baltimore-based tutoring company, and covered four periods the summer, spring, and fall semesters of 1995 and the fall semester of 1996. Implementation varied across the semesters from students not being aware that classes were taught by Sylvan instructors to students having the choice of selecting the Sylvan program and paying a tuition surcharge for the reduced student/teacher ratio. Generally, there were minimal differences in achievement between remedial courses taught by Sylvan and those taught by the College. Both Howard and Sylvan staff evaluations were generally positive, as were student evaluations. Sylvan reported a lack of short-term profitability but a belief that a cost-effective model can be developed and applied in other partnerships with colleges and universities. (CH)