Design and implementation of a testbed for testing and verifying IEEE 1451-compatible sensor systems with network performance monitoring is of significant importance. The performance parameters measurement as well as decision support systems implementation will enhance the understanding of sensor systems with plug-and-play capabilities. The paper will present the design aspects for such a testbed environment under development at University of Houston in collaboration with NASA Stennis Space Center - SSST (Smart Sensor System Testbed). © 2007 IEEE.