Under the Defense Reform Initiative , we will fill a long recognized need for stronger Departmental oversight and increased accountability. This will propel Defense Agencies new, innovative and more efficient ways of accomplishing their missions.

New contracts will include performance requirements agreed to by the agency, its customers, and the Office of the Secretary of Defense, or OSD, at the time of negotiation.

In May 1998, defense agencies and selected DoD field activities submitted draft contracts with measurable performance requirements to the Defense Management Council.

For fiscal year 1999, four agencies completed contracts with measurable performance requirements. The contracts were reviewed and approved by the agency directors, OSD officials, and the Deputy Secretary.

For fiscal year 2000, we will complete and sign eight performance contracts including contract updates.