In this report, the authors describe the value-added models used as part of teacher evaluation systems in the District of Columbia Public Schools (DCPS) and in eligible DC charter schools participating in Race to the Top. They estimated (1) teacher effectiveness in DCPS and eligible DC charter schools during the 2011-2012 school year; and (2) school effectiveness in DCPS during the same year. This report updates their earlier technical reports (Isenberg and Hock 2010--see ED521118; Isenberg and Hock 2011--see ED521120). The 2011-2012 school year is the third year of IMPACT, a teacher evaluation system for DCPS that relies in part on value-added estimates of teacher and school effectiveness. Under IMPACT, teachers who earn a highly effective rating have received performance pay, and those who earn an ineffective or a minimally effective rating for two consecutive years have been dismissed. Fifty percent of the total evaluation score for eligible teachers is composed of an individual teacher value-added score, and five percent of the total evaluation score of most teachers (including those ineligible to receive an individual value-added score) is composed of a school value-added score. As part of a Race to the Top grant, 26 DC charter school local education agencies (LEA) have joined DCPS in using a teacher-level value-added model in their teacher evaluation systems for the 2011-2012 school year. A single value-added model that includes school, teacher, and student data from both DCPS and DC charter schools was used to generate estimates for all DC teachers. This report provides an overview of value-added methods in nontechnical terms; updates the earlier technical reports by describing the data used to estimate teacher and school value added, including the new data on charter school students and teachers (Chapter II); and then describes the statistical methods used to estimate teacher and school value added (Chapter III). Chapters II and III include tables of diagnostic information that summarize the population of students and teachers on which the value-added estimates are based, as well as the results from the statistical model used to produce those estimates.