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This research seeks to unify certain problems of distributed parameter control: model reduction, control, sensor/actuator selections/failure, and decentralized control. These topics are all related and are to be unified through the quadric performance metric with use of cost decomposition methods. The final research topic on model error estimation is required to male vernier adjustments after best models and controllers are developed, to absorb remaining modeling errors. During the period covered by the grant, 16 conference and journal research papers were written. Titles include: Computer Aided Design of Suboptimal LQG Controller, Cost Equivalent Realizations of Stochastic Processes, Component Cost Analysis of Large Scale Systems, Comments on Realizations and Reduction of Markovian Models for Nonstationary Data, and On the Selection of Controller Order for the Control of Linear Dynamic Systems.