Now that modern infrastructure systems are moving toward an increased use of automation in their day-to-day operations, there is an emerging need for new approaches to the formal analysis and validation of system functionality with respect to correctness of operations. This paper describes a compositional approach to the multi-level behavior modeling and formal validation of large-scale distributed system operations with hierarchies and networks of finite state automata. To avoid the well-known state explosion problem, we develop a new procedure for viewpoint-action-process traceability, thereby allowing parts of a behavior model not relevant to a specific decision to be removed from consideration. Key features of the methodology are illustrated through the development of behavior models and validation procedures for polite conversation between two individuals, and lockset- and system-level concerns for ships traversing a large-scale waterway system.