I checked out the breeder of your dog and it doesn't seem like they title/work/xray their dogs. If they do, that's great, and if not, I hope that they prove them in other ways. Your dog is still a puppy, to breed him now would be a very bad idea.

As far as your dog being an improvement...
-I see you're in law enforcement. Is he a patrol K9 that has had street bites in a variety of situations?
-What about drug busts or extremely long tracks? Is he a working PSD at all?
-Do you know the positives and negatives of every single dog in his pedigree? Do you know, inside out and upside down, which lines would be a beneficial mix and which may be a disaster? What do you know about linebreeding, inbreeding, and outcrosses?
-What is your goal for breeding? Improved work ethic? Balanced family/work life? The best darn police dog line you could possibly breed?
-What do you know about health screenings?
-Can you recite the GSD standard in your sleep? What about the rules for Schutzhund?
-Do you plan on keeping back females to start your own kennel with a goal for improving the breed in mind? Or will you just sell the entire litter and hope for the best?
-BE HONEST: what are your dog's faults? If you say "none," please step away from the breeding button and return to your research. No dog on earth ever has or ever has had no faults. Kennel blindness will get you nowhere but detriment.
-Do you know what a mentor is, with regards to dog breeding?
-Have you had outside, uninterested parties evaluate your dog?

Now, what do you know about health?
-Do you know what your dog's lines have produced with regards to hips, temperament, DM, any of the common ailments plauging GSDs? What about the bitches you are looking into?
-Do you know how to execute a proper breeding? If you think all you need to do is put them in the backyard together, think again! You could end up with a couple of seriously injured dogs.
-What do you know about sperm counts and motility?
-What about pre-breeding health checks?
-Do you know what the bitch will need with regards to health screenings so she doesn't give your male an STD?
-Did you know that just because a dog may have peaches and a banana, doesn't mean he's a stud? If your dog throws a mishmash of pups and you can never guess what may come out of him next, chances are he is NOT a stud. It is extremely rare to raise a good stud dog from puppy to adulthood.
-Is blood in the semen okay or not okay?

There are a bazillion more questions that may seem overwhelming but really are answered in most books and online material. If you don't know the answer to *all* of these, you should not think about breeding except how to learn more about it. It's not an easy business- too many breeders out there think they're helping when they're hindering or even undoing all the hard work going into the breed.

Concentrate on raising your dog to be its best, consider joining a schutzhund club and being active, learn the bloodlines and what's typical in them, become a student of the breed and then learn about breeding. It's no easy task, and if you do it right you very likely won't be making money from the endeavor.

(ok, wrote all that a few hours ago)

A dog isn't fully mature until at least 24 months (two years) of age. Coincidentally, that's the age to certify with OFA! I see your dog is going into narcotics training, keep that up. Are you planning on training him to be a fully fledged patrol dog? If you do, and he passes, it's very likely he would be a good choice to breed but at the same time you have to know how to choose bitches carefully; some dogs that combine well with some lines turn out complete crap when combined with others. Those are difficult questions to answer online and you'll get a good foundation by researching pedigrees on your own as well as finding an experienced breeder willing to mentor you and going to schutzhund clubs to learn firsthand what the lines produce. If indeed your dog is in training to be a PSD, you may not want to work your dog in schutzhund; that's something more experienced trainers who regularly work with service dogs can tell you about in detail.

You see, there are a lot of basics to learn that just isn't suitable to be covered on a forum like this; I believe Leerburg has a few good books and videos related to the subject. I also agree that breeding for color isn't the best, especially because it seems your dog came from a breeder who emphasizes color over proving working ability. Don't fall into that trap!