A growing body of research suggests that "high-impact practices" such as project-based and experiential learning make important contributions to undergraduate student development and outcomes. However, most attempts to evaluate such programs are based on qualitative or self-reported data generated from small samples. This study examines the impact on student development of a large university program that incorporates project-based learning into applied, vertically integrated, interdisciplinary research teams. We deploy a range of evidence, including self-reported assessments with a comparison group, a matched-pairs analysis of educational outcomes, participant surveys, and an alumni survey. By including a counterfactual comparison, our study demonstrates that applied projects can foster intellectual growth and positive academic outcomes among undergraduate students by: (1) contributing to skill development in relation to research, teamwork, and critical thinking; (2) developing closer relationships among students, faculty, and others within the university; (3) increasing the likelihood that a student graduates with distinction; and (4) contributing to career discernment that shapes students' post-graduate trajectories, often predisposing students toward careers in public service. We comment on the most important factors for faculty and universities seeking to replicate this model: an emphasis on team organization and operations; the opportunity for students to develop close relationships aided by layered mentoring; and applied research. We also lay out the case for developing a general structure of evaluation for such programs to facilitate comparisons across educational contexts.