The Air Force is trying to increase small-business use and identify industries that have the most potential for increasing small-business utilization. This report examines the Air Force Small-Business Performance Expectations Methodology, with recommendations for improving the methodology accuracy to identify small-business opportunities. The report recommends that efforts to increase small-business spending should take into account differences between the Air Force's and other services' buying requirements as well as the importance of budget categories, using industry/Product or Service code/budget-category combinations to identify small businesses. Changing certain market definitions to identify areas with more or less small-business saturation would improve the methodology. Additionally, industry small-business size standards should be considered. A larger amount of data, including the last two to three years of data,would help monitor and refine accuracy.

"RR-1545-AF"--Back cover. "RAND Project Air Force." "Prepared for the United States Air Force."

Preface -- Figures -- Tables -- Summary -- Introduction -- Background and purpose -- Current performance expectations methodology -- Air Force Small-Business spending by MAJCOM and PEO -- Air Force Small-Business spending by Budget Catagory and Industry -- Refining the performance expectations methodology -- Conclusions -- Appendix -- Acknowledgements -- Abbreviations -- References.