The Carl D. Perkins Vocational and Technical Education Act of 1998 (Perkins III) requires, in Section 113(c)(3)(C), that the Secretary provide the appropriate committees of Congress copies of annual reports received by the Department from each eligible agency that receives funds under the Act. Section 113(c)(3)(a) further requires the Secretary to make the information contained in such reports available to the general public. These reports contain information on states' progress in achieving their adjusted performance levels. This is the third annual report to Congress by the Department. This report to Congress contains three sections. The first section recounts the accountability requirements in Perkins III and describes efforts by the Department to work with states to develop their performance accountability systems and levels for vocational and technical education. The second section offers highlights of states' progress in meeting their PY (Program Year) 2001-2002 performance levels, along with individual state data reports. The final section discusses issues pertaining to the quality and reliability of states' Perkins performance data. States have made some progress in building their performance accountability systems for vocational and technical education in response to the Perkins Act. They continue to refine and upgrade their measurement approaches and are increasingly using their data for state and local program improvement. Attachments include: (1) Perkins State Allocations: PY 2001-2002; (2) State's Definitions of "Concentrators": PY 2001-2002; (3) Individual State Data Profiles: PY 2001-2002; and (4) Glossary of Terms. (Contains 130 tables and 8 figures.)