This report addresses the major performance and accountability challenges facing the Department of Labor as it seeks to promote the welfare and economic security of the nations work force and ensure that workplaces are safe and healthy. It includes a summary of actions that Labor has under way to address these challenges and outlines further actions that GAO believes are needed. This analysis should help the new Congress and administration carry out their responsibilities and improve government for the benefit of the American people.

This report addresses the major performance and management challenges confronting the Department of Defense (DOD). Taken together, these challenges, if not addressed, can adversely affect the Department's operational effectiveness. The report also addresses corrective actions that DOD has taken or initiated on these issues- including DOD'S blueprint for a strategy-based, balanced, and affordable defense program as outlined in the May 1997 Report of the Quadrennial Defense Review and the reforms described in its November 1997 Defense Reform Initiative Report-and further actions that are needed. For many years, we have reported significant management problems at DOD. These problems can be categorized into two areas: (1) systemic management challenges dealing with financial management, information management, weapon systems acquisition, and contract management; and (2) program management challenges dealing with infrastructure, inventory management, and personnel. These problems cut across DOD'S program areas.