THE DISCUSSION OPENS WITH COMMENTS ON MANAGEMENT SYSTEMS IN THE FEDERAL GOVERNMENT, A BRIEF REVIEW OF THE HISTORY OF MBO AND PROGRAM EVALUATION TECHNIQUES, AND A DESCRIPTION OF THE JUSTICE DEPARTMENT'S ORGANIZATION, STAFFING, AND PAST APPROACHES TO PROGRAM DEVELOPMENT AND BUDGET FORMULATION. IT IS POINTED OUT THAT THE PLANNING, PROGRAMMING, AND BUDGETING (PPB) PHASE BYPASSED THE JUSTICE DEPARTMENT, WHERE A CATEGORICAL, INCREMENTAL APPROACH TO BUDGETING PREVAILED UNTIL 1973. RESPONDING TO A NUMBER OF EXTERNAL PRESSURES AND TO CHANGES IN ITS LEADERSHIP, THE DEPARTMENT IMPLEMENTED AN MBO SYSTEM IN FEBRUARY 1974 AND CREATED A MANAGEMENT PROGRAMS AND BUDGET STAFF. INTRODUCTION OF MBO AS A FORMAL MANAGEMENT SYSTEM AND DEVELOPMENT OF A PROFESSIONAL STAFF TO OPERATE AND REFINE THE SYSTEM HAVE BROUGHT SIGNIFICANT CHANGES IN BUDGET FORMULATION AND PROGRAM OVERSIGHT PRACTICES. A FORMAL MANAGEMENT SYSTEM IS NOW AVAILABLE TO ASSIST THE ATTORNEY GENERAL IN DEVELOPING DEPARTMENTAL POLICIES AND IN REACHING DECISIONS REGARDING SPECIFIC PROGRAMS. THE DEPARTMENT USES ITS ANNUAL SPRING REVIEW OF PROPOSED BUDGET ESTIMATES TO IDENTIFY CRITICAL PROGRAMS IN NEED OF INDEPTH STUDY. THE RESULT IS A FORMAL PROGRAM EVALUATION AGENDA. SINCE 1973, OVER 40 PROGRAM EVALUATIONS AND SPECIAL STUDIES OF DEPARTMENTAL ACTIVITIES HAVE BEEN CONDUCTED. EFFORTS TO LINK MBO CONCEPTS AND PROGRAM EVALUATION TO THE BUDGET FORMULATION PROCESS HAVE PROVED SUCCESSFUL, BUT THERE REMAINS THE CHALLENGE OF ACTUALLY CONVINCING DEPARTMENTAL DECISIONMAKERS TO USE THE RESULTS OF FORMAL PROGRAM EVALUATIONS IN REASSESSING PROGRAMS AND PRACTICES. THE NEED FOR PUBLIC AGENCY EVALUATORS BOTH TO WORK TOWARD THE NORMATIVE MODEL OF THE SELF-EVALUATING ORGANIZATION AND TO DEVELOP EVALUATION TECHNIQUES AND DATA BASES THAT ARE FLEXIBLE ENOUGH TO MEET THE IMMEDIATE DEMANDS OF THE DECISIONMAKING ENVIRONMENT WITHIN WHICH POLITICAL LEADERS FUNCTION IS POINTED OUT. IT IS ALSO NOTED THAT GOVERNMENT EVALUATORS HAVE A RESPONSIBILITY TO PRESS FOR FORMAL EVALUATIONS OF THEIR OWN EFFORTS. (LKM)