Under Secretary of Defense for Intelligence The Under Secretary for Intelligence or USD ( I ) is a high - ranking civilian position in the Office of the Secretary of Defense ( OSD ) within the U . S . Department of Defense that acts as the principal civilian advisor and deputy to the Secretary and Deputy Secretary of Defense on matters relating to military intelligence . The Under Secretary is appointed from civilian life by the President and confirmed by the Senate to serve at the pleasure of the President . Overview . The Office of the Under Secretary of Defense for Intelligence ( OUSD ( I ) ) is principal staff element of the Department of Defense regarding intelligence , counterintelligence , security , sensitive activities , and other intelligence - related matters . As the Secretary of Defense ' s representative , the USD ( I ) exercises oversight over , among others , the Defense Intelligence Agency ( DIA ) , the National Geospatial - Intelligence Agency ( NGA ) , the National Reconnaissance Office ( NRO ) and the National Security Agency ( NSA ) . In addition , the Under Secretary is also dual - hatted , serving as the Director of Defense Intelligence under the Office of the Director of National Intelligence . With the rank of Under Secretary , the USD ( I ) is a Level III position within the Executive Schedule . Since January 2010 , the annual rate of pay for Level III is $ 165 , 300 . History . The position of Under Secretary of Defense for Intelligence was created by the " National Defense Authorization Act for Fiscal Year 2003 " in the aftermath of the September 11 terror attacks to better coordinate Department - wide intelligence activities . It became second in the line of succession for the Secretary of Defense , after the Deputy Secretary of Defense , after an executive order was made by President George W . Bush on December 22 , 2005 . When it was created , the legislation described it as taking precedence in the Department behind the Under Secretary for Personnel and Readiness . On November 23 , 2005 , a Department of Defense Directive was made by Secretary Rumsfeld that stated that the Under Secretary shall serve as the Secretary ' s primary representative to the Office of the Director of National Intelligence . It also stated the Under Secretary shall provide policy and oversight on the training and career development of personnel in Department of Defense ' s counterterrorism , intelligence , and security components . The Under Secretary has the duty of finding candidates to be nominated to serve as Directors of the Defense Intelligence Agency , the National Geospatial - Intelligence Agency , the National Reconnaissance Office , and the National Security Agency , and overseeing their performance . The USD ( I ) became a dual - hatted position as Director of Defense Intelligence , acting as the primary military intelligence advisor to the DNI . This additional position follows a May 2007 memorandum of agreement between Secretary of Defense Robert Gates and Director of National Intelligence John Michael McConnell to create the position . Reporting Officials . Officials reporting to the USD ( I ) include : Office of the Under Secretary . The Under Secretary leads the Office of the Under Secretary of Defense for Intelligence ( OUSD - I ) . A unit of the Office of the Secretary of Defense , OUSD - I exercises planning , policy , and strategic oversight over all Department of Defense intelligence , counterintelligence , and security matters . OUSD - I serves as the primary representative of the Defense Department to the Director of National Intelligence and other members of the United States Intelligence Community . The work of OUSD - I is conducted through its several staff directorates , including : Budget . Budget Totals . The annual budget for the USD ( I ) is contained in the Office of the Secretary of Defense ' s ( OSD ) budget , under the Defense - Wide Operation and Maintenance ( O & M ) account .