NMAC OCCURRED WHEN CTLR VECTORED DEPARTING B727 TOWARD VFR PA34. CTLR ISSUED THE PA34 TFC AND ADVISED THE FLC THAT PA34 HAD THE B727 IN SIGHT. TCASII RA EVASIVE DSCNT TAKEN BY THE B727 AFTER THE FLC SIGHTED THE PA34 AT 3-4 MI AWAY.

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DURING CLB OUT OF COS I WAS GIVEN A HDG OF 50 DEGS; CLBING OUT OF APPROX 10000 FT MSL; I NOTICED A TARGET ON THE TCASII. THE TARGET WAS AT 12 O'CLOCK AND 2000 FT ABOVE. WE WERE CLBING AT 2000 FPM. THE TCASII WAS ON 6 MI RANGE. I POINTED OUT TO THE CREW 'HEY LOOK AT THIS GUY; HE'S RIGHT OFF THE NOSE 2000 FT ABOVE US.' AT THAT TIME THE TCASII SAID 'MONITOR CLB' AND AN RA SHOWED TO DECREASE CLB TO 0 FPM. I LOWERED THE NOSE TO STOP THE CLB AND SAW AN ACFT AT ABOUT 12:30 O'CLOCK IN A STEEP TURN AT ABOUT 3-4 MI. THE CTLR THEN CALLED OUT TFC AT 12 O'CLOCK MANEUVERING; 'A SENECA HAS YOU IN SIGHT.' AT ABOUT THE SAME TIME AS THE CALL; I RECEIVED ANOTHER TCASII WARNING. THIS TIME THE RA SAID 'DSND NOW; DSND NOW' AND IT SHOWED A 2500 FPM DSCNT. I IMMEDIATELY PUSHED THE NOSE OVER AND BEGAN THE DSCNT AS SHOWN. I NOTICED THE TARGET PASS RIGHT OVER THE ACFT SYMBOL IN THE CTR OF THE IVSI. THE FE SAID SHE SAW THE ALT OF THE TARGET GO FROM 1-2 AS IT PASSED OVERHEAD; MEANING IT PASSED OVERHEAD BTWN 100-200 FT ABOVE OUR ACFT. I ASKED THE CTLR FOR A PHONE NUMBER. I TALKED TO SOMEONE IN COS WHO SAID HE WAS A SUPVR. I ASKED HIM IF IT WAS NORMAL PROC TO VECTOR SOMEONE RIGHT INTO OTHER TFC. HE TOLD ME THAT HE HAD TALKED TO THE CTLR AND HE WAS CONCERNED BECAUSE HE HADN'T WORKED TOO MANY B727 ACFT; AND HE DIDN'T KNOW THE CLB RATE OF THE B727. THE SUPVR TOLD ME THAT THEY LOOKED IN THEIR RULES AND THAT THE ONLY SEPARATION THAT WAS NEEDED IN THAT AIRSPACE WAS 'IN THE GREEN;' A TERM I HAD NOT HEARD BEFORE. I ASKED HIM 'DOES PASSING WITHIN 100-200 FT OF ANOTHER ACFT WITH 158 PEOPLE ONBOARD CONSIDERED TO BE 'IN THE GREEN?'' HE THEN TOLD ME THAT THE CTLR WAS A LITTLE SLOW IN CALLING OUT THE TFC AND THAT THEY HAD OLD EQUIP AT THEIR STATION AND MADE UP A FEW OTHER EXCUSES. I TOLD HIM THAT I WOULD BE MAKING A FORMAL RPT BECAUSE THERE WAS NO REASON THAT WE SHOULD EVER PASS THAT CLOSE TO ANY ACFT NO MATTER WHAT THE EXCUSE WAS.