Contracting Out Government Services

Privatization of government services in the United States has accelerated in the last two decades, especially at the state and local levels. This work focuses on contracting out—the most widely used method of privatization. Contributors from academia, consulting firms, government agencies, and private providers discuss the why and how of contracting out and examine the results of contracted services, including quality and cost measures of performance. Some chapters apply economic theory to contracting out. Others examine recent case studies of contracting out initiatives.

The book begins with a thoughtful essay on the theory of privatization and examines the recent record of use in state and local governments. Section 1 takes an overview look at contracting out. Section 2 examines contracting in the criminal justice area as well as examples of contracting in such diverse areas as trash collection and the operation of golf courses. The final section looks in depth at the mechanics, obstacles, and effects of contracting. The book points out the pluses and minuses of contracting out and points to the lessons that can be learned from the recent history of this privatization technique.

Analyzes contracting out, the most widely used method of privatization, through the prism of economics.

Booknews

Focusing primarily on the state and local levels, 17 essays by economists, political scientists, and business planners explore one aspect of government privatization in the United States. The theory, application, and problems of contracting services are explored. A significant portion of the essays look at contracting out criminal justice services. The essays, as a whole, find that a primary motivation for contracting is cost reduction and that while often that goal is achieved, accountability and service quality remain problem areas. Annotation c. Book News, Inc., Portland, OR (booknews.com)

PAUL SEIDENSTAT is Associate Professor of Economics at Temple University.