This report is based on a review of Bureau population figures; Bureau policies on designating the place of imprisonment, temporary release of inmates, and halfway houses; and long-range planning in terms of prison construction and operation. The Sentencing Commission and the Bureau of Prisons reported on their efforts to modernize facilities through changing institutional philosophies, redefining capacity, maximizing use of existing physical plants, and increasing overall efficiency. The Bureau has also sought potential prison conversion possibilities from former military bases, college campuses, medical institutions, and religious seminaries. Inmate classification and programs are discussed in terms of classification system enhancement and maximum utilization of program resources, including inmate employment, alternatives to incarceration, boot camps, drug treatment programs, parenting programs, and literacy and education programs. The Sentencing Commission and the Bureau of Prisons concluded that current policies and programs adequately ensure maximum utilization of resources.