The Tandem-Mirror-Next-Step (TMNS) facility is designed to demonstrate the engineering feasibility of a tandem-mirror reactor. The facility is based on a deuterium-tritium (D-T) burning, tandem-mirror device with a fusion power output of 245 MW. The fusion power density in the central cell is 2.1 MW/m/sup 3/, with a resultant neutron wall loading of 0.5 MW/m/sup 2/. Overall machine length is 116 m, and the effective central-cell length is 50.9 m. The magnet system includes end cells with yin-yang magnets to provide magnetohydrodynamic (MHD) stability and thermal-barrier cells to help achieve a plasma Q of 4.7 (where Q = fusion power/injected power). Neutral beams at energies up to 200 keV are used for plasma heating, fueling, and barrier pumping. Electron cyclotron resonant heating at 50 and 100 GHz is used to control the electron temperature in the barriers. Based on the resulting engineering design, the overall cost of the facility is estimated to be just under $1 billion. Unresolved physics issues include central-cell ..beta..-limits against MHD ballooning modes (the assumed reference value of ..beta.. exceeds the current theory-derived limit), and the removal of thermalized ..cap alpha..-particles from the plasma.