This is the third annual report to the Congress on the Defense Environmental Restoration Program (DERP) in response to the specific information requested by Section 211 of the Superfund Amendment and Reauthorization Act (SARA) of 1986. The report explains and gives the current status of: (a) the Installation Restoration Program, (b) Formerly Used Properties, (c) Other Hazardous Waste Operations, (d) Research, Development and Demonstration, and (e) Building Demolition and Debris Removal. Progress at NPL sites is included along with an explanation of the process. The second part of the report provides specific information requested in SARA concerning progress at specific sites.