Since my confirmation as Director of Operational Test and Evaluation (DOT&E) in 2009, I have implemented initiatives to improve the quality of test and evaluation (T&E) within the Department of Defense. I have emphasized early engagement of testers in the requirements process, improving system suitability by designing reliability into systems from the outset, and integrating developmental, operational, and live fire testing. Implementing these initiatives has revealed the need for an additional area of focus - the requirement to incorporate statistical rigor in planning, executing, and evaluating the results of testing. There are significant opportunities to improve the efficiency and the outcomes of testing by increasing interactions between the testing and requirements communities. In particular, there should be early focus on the development of operationally relevant, technically feasible, and testable requirements. In this Introduction, I discuss the crucial role the T&E community can and should play as requirements are developed. Additionally, I describe DOT&E efforts to institutionalize the use of statistical rigor as part of determining requirements and in T&E. I also provide an update on the Department's efforts to implement reliability growth planning and improve the reliability and overall suitability of our weapon systems. And lastly, I describe challenges and new developments in the area of software T&E. Last year, I added a new section to my Annual Report assessing systems under my oversight in 2010 - 2011 with regard to problem discovery during testing. My assessment fell into two categories: systems with significant issues observed in operational testing that should, in my view, have been discovered and resolved prior to the commencement of operational testing, and systems with significant issues observed during early testing that, if not corrected, could adversely affect my evaluation of those systems' effectiveness, suitability, and survivability during Initial Operational Test and Evaluation (IOT&E). This year, I am providing an update to the status of those systems identified last year, as well as my assessment of systems under my oversight in 2012 within those two categories.