A study reviewed the efficiency and effectiveness of the Department of Labor's (DOL's) Veterans' Employment and Training Service's (VETS's) administration of the Disabled Veterans' Outreach Program (DVOP) and Local Veterans' Employment Representative (LVER) program. While veterans received priority employment services at one-stop centers, VETS did not collect appropriate data for determining the effectiveness of these services, including subsequent job retention and wages. VETS's oversight of the DVOP and LVER grants was inadequate. The agency did not have a comprehensive system in place to manage state performance in serving veterans. VETS did not communicate a consistent message to states on expected performance, nor did it have meaningful incentives to encourage states to perform well. VETS's monitoring of the DVOP and LVER grants was excessive and had little effect on service. The DVOP and LVER programs did not always operate well within the one-stop center environment because states did not have the flexibility to design their services for veterans in a way that best met the needs of employers and veterans. VETS had not adequately adapted to the one-stop center environment. Matters for congressional consideration and recommendations for executive action were identified. (Scope and methodology and comments from the Department of Labor are appended.) (YLB)