Employee Counseling Services (ECS) programs have emerged as an effective method for dealing with employees whose job performance has deteriorated due to personal problems such as alcoholism or drug abuse. It is estimated that 18% of any work force is effected by such problems at any given time an that these employees cost industry billions of dollars annually in lost productivity, abuse of sick leave, etc. One of the critical concerns of this emerging field is the need for comprehensive evaluation that can demonstrate the cost-effectiveness and cost-benefits of ECS programs. This paper will describe the model Federal ECS developed at the U.S. Department of Health and Human Services as well as the components of the evaluation system designed to determine its effectiveness. The system is the first of its kind and will be a valuable contribution to the field. The paper then raises issues and develops conclusions about designing such an evaluation within the context of a large bureaucracy.