The development of the RX-79BD-1 Blue Destiny Unit 1 was led by Dr. Chlust Moses, a researcher from the Principality of Zeon's Flanagan Institute who defected to the Earth Federation, and it incorporated the EXAM System, a unique mobile suit operating system invented by Chlust. Originally, the Blue Destiny Unit 1 was based on the RGM-79[G] GM Ground Type. However, its performance did not meet the demands of the EXAM System, so the GM Ground Type's head, which was already installed with the EXAM System, was removed and mounted on a modified chassis based on the RX-79[G] Gundam Ground Type. This also resulted in the Blue Destiny Unit 1 being often referred to as the "Blue GM".
The EXAM System was designed to draw out a mobile suit's full potential for a limited time. However, it was highly unstable, and prone to going berserk, attacking friends and foes alike. Thus, the machine was also nicknamed the "Blue Death". Federation mechanic Alph Kamra later installed a limiter, limiting the EXAM System's output at 50% to prevent the mobile suit from going berserk. The output can be raised to 100% when necessary, but this can only be sustained for 5 minutes before the machine overheats. The Blue Destiny Unit 1 also featured improved generator output and enhanced mobility thanks to magnet coating and added leg verniers. It had similar armaments as the Gundam Ground Type, but with a pair of vulcan guns on its chest and two new wire-guided missile launchers on the stomach.