Our objective is to design a secured distributed environment for interactive work group on Internet. No one will find it comfortable to use the system to do serious work if there is no guarantee of some privacy. We propose to build a security model to provide multilevel security with bounded propagation to grant access to the users. The innovation allows a grantor to have direct control on the privilege after it is granted. We also propose to use replication technique to handle the problem of multiple users working on the same document. Different versions of a document can coexist and be managed under the proposed system. Various data sets (e.g., Hubble Space Telescope, IUE, and EOS) obtained in NASA missions can be reviewed using the system. NASA can use the system to review grant proposals, to distribute NASA Research Announcement, to manage programs such as SBIR and STTR. NASA procurement procedure may also be implemented electronically. Commercial applications of such systems include journal paper review, proposal evaluation, and census data distribution. We shall deliver a design (including the model, the policies and some code) of such a secured work group at the end of the Phase I. Interactive Journal Paper Review, Conference Organization, Proposal Evaluation, Census Data Review, Academic Advising, and Business Contract Bidding