The agencies involved were the U.S. Office of Education and LEAA. Data were collected through interviews with key agency informants and project directors, examinations of files, and nonparticipant observation of program-related events. Organizational theories and anthropological models were used to analyze the largely ethnographic data. Findings indicate that both agencies had common broad social goals in working with troubled youth. Necessary elements in collaboration, referred to as the 'transaction model,' facilitated the program design and operation of the agreement. These included field-based readiness for the program, power and authority of the chief administrators, a transactional style of organizational management, frequent contacts between the actors, and power and viability of the Student Initiated Activities Model. A number of other specific findings and recommendations resulted from the study. Recommendations included the formation of an interagency committee, encouragement of replications of the program, and a clearer definition of the project director's role. Researchers concluded that the success of the interagency agreement was documented. (ERIC abstract modified).