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This progress report describes the development of the NTS initiative and proposed future activities to bring the NTS to its full potential. A set of preliminary national transportation performance indicators is proposed. These performance indicators should be seen as the beginning of a process rather than as the definitive set of national transportation system indicators. A second part of the NTS analytical process involves the development and application of a national transportation network analysis capability (NTNAC) that will provide the ability to evaluate the national network in a multi- modal manner. Using the NTNAC, problems with the Nation's transportation system can be identified and policy options to address these problems evaluated. The report concludes with a discussion of the use of the NTS within the Department. It is proposed that the results of the analyses carried out using the national transportation performance measures and the NTNAC in the assessment of the Nation's transportation system, the identification of issues, and the analysis of options be presented in biennial State of the National Transportation System reports.