The goal of Project IMPACT is to provide the U.S. Army with an effective, efficient, and economical computer-assisted instruction (CAI) system in a total system framework. This paper reviews the a) reasons for establishment of Project IMPACT, b) nature of the project and its relevance to needs of the Army, c) reasons why the Army needs to develop its own capability in CAI, and d) directions and prospects for delivery of specifications for an operational CAI system for the Army within the next two years. (JK)