VERY IMPORTANT DISTINCTION!: If you are installing this package for the first time into your ACEware system, the environment variable ACE_WARE needs to be defined as the base directory of your ACEware installation. If, on the other hand, you are updating a package into an ACEware system which is already in use, then ACE_WARE needs to be defined as the base of your shadow installation. In either case, after defining ACE_WARE, you should see the following: 
% cd $ACE_WARE
% ls
RCSfiles/       idl/            lib/            pkgs/
exe/            include/        man/
%

As a concrete example, if I were installing the initial version of the ACEware system at SRL, I would define 

setenv ACE_WARE /home/idunn1/ACEware
which, in fact, is where the official installation of ACEware is at SRL. On the other hand, if I were instead updating the level1 package, I might chose to place the shadow directory tree in my home directory to work on making the new release without interfering with the use of the ACEware system by others. In that case, while working on the make of the new level1 package, I would define 
setenv ACE_WARE /home/darkalf/bruce/shadow
(See the shadow installation notes for more details on creating this shadow workspace.)

CC should be defined as your favorite POSIX/ANSI C compiler, e.g., 

setenv CC gcc