This study was designed as an exploratory and descriptive project. A review of the literature on adult and juvenile correctional facilities shows that social scientists traditionally have concentrated on internal concerns, although a few have tried to analyze interorganizational relations and their impact on service agencies. The New York City (NYC) Project examined in this dissertation was a cooperative effort of the New York State Department of Mental Hygiene (DMH) and the New York State Division for Youth (DFY) which opened in February 1976. Designed for youths who needed both psychiatric therapy and a secure setting, the program had 2 components: a short-term unit of 10 beds to provide diagnostic, stabilization and emergency services under DMH supervision and a 20-bed, long-term unit for treatment and resocialization administered by DFY. The NYC Project had to interact regularly with the Division of Criminal Justice, an advisory board, legal groups connected with the program, and several external groups including police, judges, community action committees, the mass media, and politicians. Data were collected by observing the project from January 1976 through May 1977, reviewing relevant documents, and interviewing project personnel and members of external groups. These techniques addressed four concerns: (1) the facility's admission criteria and intake processing , (2) treatment programs, (3) discharging and placing of residents, and (4) funding. The perceptions of all persons interviewed regarding the impact of external organizations on the project were also analyzed. The NYC Project's organizational network exerted considerable, visible influence on eligibility criteria and the intake system. The treatment program was also affected by outside factors, although in a less visible and direct manner. Differing philosophies of the DMH and DFY created conflicts, and treatment programs shifted in response to changes in public and political attitudes toward juvenile offenders. Placement and discharge efforts depend in many cases on DMF and DFY administrators, particularly in the short-term unit. The financial position of the project was always tenuous and seemed to depend on political considerations rather than on needs for services to juveniles. Finally, 11 general hypotheses on the relationship between a social control facility and its external social environment are presented. The appendixes describe problems experienced by the researcher and provide the interview questionnaires. A bibliography of 70 references is included.