Everyone else has said it well. I am sure your dog is a fantastic companion and a really nice dog. However, I agree that a dog that washed out of police work, with no pedigree, no title, and no OFA report will only attract less-than-stellar quality people with less-than-stellar bitches. When breeding GSDs (or any breed), you want to breed only the best to the best; in addition, there are certain combinations you DON'T want to make, even if both male and female are stellar. For example, doubling up on certain bloodlines can cause severe aggression issues, even if both the male and female have good temperament. Doubling up on some bloodlines can produce bad hips, hemophilia, poor temperament, DM, yada yada yada. It seems like breeding dogs ought to be the simpliest thing in the world, but doing it the right way is more complicated than you can imagine. It really does take an expert who understands genetics and GSD bloodlines to look at both pedigrees; only an expert will know whether it is truly a good match that will benefit the breed and the humans that own them. Otherwise, it's a crapshoot known as "backyard breeding", and is the reason why there are so many unhealthy GSDs with poor temperament around today.
I see that you really want to do right by the breed, and your dog. Thank you!! We get so many yahoos that come in here and think they want to breed dogs, having no care or concern for anything they produce except $$$. If you were treated rudely in the beginning of the thread, that is why--we mistook you for a yahoo. People here care passionately about the breed, and hate to see it destroyed by people who have no clue what they are doing. Backyard breeding is bad enough in a small breed like a Chihuahua, but a large, powerful, potentially aggressive breed such as a GSD, it can be disasterous. Take a look at the forum and see all the threads about inappropriate aggression, fearfulness, behavior issues, health issues, people getting bitten, etc.
Anyway, it seems you already understand that, so I won't continue on that soapbox.
Before you even think about offering your boy for stud, as the others mentioned, you need to first wait until he is two years of age so that he can get his hips and elbows x-rayed for OFA. If the OFA comes back good, great! There are a host of other health screenings you'll need to do as well; DM, CERF, etc. Once he clears all that, you'll have to think about titles. Now, he's a police dog washout, which is a red flag, but it doesn't necessariy mean he can't do SchH, or AKC obedience, herding, tracking, etc. This will take time, and during the training process, things about his temperament may come to light that will give you more information about why he washed out of police work. Not enough drive? Nerves not stable? Not courageous enough? etc. If he can in fact acheive a title, it means he may still have something to offer, but the female he's matched to will need to make up for what he lacks.
Now, let's say he's passed his OFA and health checks and gotten his SchH, obedience, or whatever title. At that point, here's what I would do if the owners of the females haven't disappeared, gotten tired of waiting and bred to some other mediocre stud that doesn't have any bothersome requirements, and are still interested in breeding to your boy: Ask for their females' pedigrees and their OFA report. If they say "she aint got none o' that", or "What's an OFA?" you know you are dealing with less-than-stellar people who probably have less-than-stellar, backyard-bred dogs. Keep that in mind. Politely tell them that without at least a pedigree and an OFA report, you cannot even consider their females. Once they learn that they'll be out several hundred dollars to get hip and elbow x-rays, you probably won't hear from them again.
If, for the sake of argument, they come up with the pedigree and OFA papers, post them here and have us look at them. I bet you 10 to 1 that the pedigree will be mediocre, or at least, an unsuitable match for your boy. Then you politely tell them it isn't a good match, and for the good of the breed and your own reputation, you'll have to decline.
For the sake of argument, let's say the pedigree is awesome, the bitch herself is awesome, and the match is determined to be a good one. Great! The next step is for the bitch to attain a title. In Germany, SchH1 is the minimum requirement for breeding. Here in America, there are many different types of working titles aside from Schutzhund; AKC obedience, herding, tracking, even agility and rally is at least something that shows the dog can be taken out in public, obey, and perform.
Okay, now, lets say all our ducks are in a row; pedigree, health testing, title, everything is in order. Both dog and bitch need a brucellosis test immediately prior to the breeding. If that comes up clear, then I'd say you *might* be good to go for breeding.
I say "might" because there are a hundred things that could go wrong in the whole process; the bitch may not accept your dog for breeding, the breeding may not take, you may find out something about the bitch or the owner that you don't like, or in fact you may find out something about your own dog you don't like! You can back out of a breeding agreement at any time. It might make the owner of the female mad or sad or frustrated, but hey, stuff happens.
See, it's pretty complicated. Too complicated for me; I thought I wanted to be a breeder until I found out everything that's involved doing it the right way. I decided to leave it up to the experts, as I don't have the temperament for it.