This paper presents the results of an evaluation of an air-to-air heat pump design that could be used to pre-condition ventilation air. The performance evaluation for the proposed design was limited to the heating mode only. A ventilation air heat pump in the heating mode was simulated using a public domain heat pump simulation program. The simulation results showed that an air source unit should be able to operate at a coefficient of performance of over 3 at outdoor temperatures below +10°F (-12°C). These results demonstrate the energy saving potential of a well designed air source heat pump system. Design criteria for the proposed heat pump system are presented and include the primary components as well as application specific recommendations. Suggestions for improvement of the concept and barriers to commercial implementation are discussed.