A critical examination of some basic claims and issues associated with needs assessment is presented. This paper identifies the various meanings and methods associated with needs assessment, including some of the evidence concerning differences in actual practice. Issues which arise as a result of various approaches to needs assessment are discussed, and practical guidance concerning whether or not to conduct a needs assessment is offered. Highlighted are: the meaning of the term; federal law and regulation; proposed methods, tools, and concepts for conducting needs assessment; and the reasons for and uses made of the needs assessment. Although current literature is generally optimistic about the value of needs assessment for resource allocation and decision-making in public agencies, this paper presents a clear contrast. It is concluded that the case for, limits of, and evidence about the positive impact of needs assessment are not encouraging. Caution and circumspection are suggested about the likely analytical contribution which assessments might make to decision-making in public agencies. (Author/GSK)