This study assessed Head Start grantees' and U.S. Department of Health and Human Services (HHS), Administration for Children and Families (ACF) staff's experiences during recent program expansions and their ability to handle future expansions. A random sample of 80 regional and American Indian Head Start grantees and delegates, along with staff at all 10 ACF regional offices and the national headquarters, were interviewed during 1992. The study found that the level of grantee performance was considerably lower than the level of performance reported by grantees and published by ACF. It also found that: (1) some grantees experienced difficulty enrolling children; (2) the greatest challenge grantees faced during expansion was obtaining adequate and affordable facilities; (3) 40 percent of grantees had difficulty finding qualified staff; (4) expansion hindered grantee's ability to provide adequate transportation; (5) expansion increased the demands on social services; and (6) both grantees and ACF were hindered by inadequate planning. The study recommends that ACF develop regional expertise and offer grantees better assistance with facilities, develop strategic plans to handle future expansion, and improve its training and technical assistance. Two appendixes contain HHS and ACF comments on the report. (MDM)