This short "how-to" booklet describes the major elements of the project narrative section of research and demonstration grant proposals. Although the format is designed expressly for the Health Care Financing Administration, the subject matter is generally pertinent for research proposals aimed at many agencies within the U.S. Department of Health and Human Services. The booklet highlights several topics: hypotheses to be tested, study design issues (experimental variables, population, and samples to be studied), and plans and problems for data collection. It offers suggestions about the content, format, and level of detail for several parts of the narrative, such as the evaluation and analysis plan, work plan, and project staff. A selective glossary and bibliography on research and evaluation design are appended.