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Article
Publication date: 1 April 1998

George A. Larbi

This article examines contracting‐out in practice in public health and water services in Ghana. Drawing on in‐depth interviews and discussions with knowledgeable officials…

1115

Abstract

This article examines contracting‐out in practice in public health and water services in Ghana. Drawing on in‐depth interviews and discussions with knowledgeable officials, complemented by documentary analysis and secondary sources, the article provides insights into some of the institutional constraints and capacity issues that policy‐makers and implementers need to be aware of in seeking to introduce and implement contracting‐out policies in a developing country context. Though contracting‐out in Ghana’s health and water sectors has so far been used in the provision of support services, attempts to broaden its application to include the direct provision of core services raise a number of capacity questions related to regulatory frameworks, enforcement and monitoring mechanisms, development of management information systems and skills for contract management. The capacity and willingness of the private sector to take on direct provision of public services are also crucial.

Details

International Journal of Public Sector Management, vol. 11 no. 2/3
Type: Research Article
ISSN: 0951-3558

Keywords

Article
Publication date: 1 March 2011

Richard W. Schwester

The touted benefits of inter-governmental contracting are cost savings and simplicity when compared to shared service agreements. Some managers and public officials resist…

Abstract

The touted benefits of inter-governmental contracting are cost savings and simplicity when compared to shared service agreements. Some managers and public officials resist contracting given the assumption that there may be a drop-off in service quality. However, inter-governmental contracting introduces market forces which theoretically would improve performance while keeping costs per unit of output low (Boyne, 1998). This paperexamines municipal police contracting in the State of New Jersey, the purpose of which is to determine if there are statistically significant differences in non-violent crime rates among municipalities that maintain their own police force versus those that contract with neighboring municipalities for police services. Contracting costs are also explored. While summary statistics indicate lower non-violent crime rates among municipalities that maintain their own police force compared to those that contract for police services, multiple regression results indicate that contracting does not predict higher non-violent crime rates at the .05 level. Therefore, contracting for police services should be explored as an alternative municipal policing model.

Details

Journal of Public Procurement, vol. 11 no. 1
Type: Research Article
ISSN: 1535-0118

Open Access
Article
Publication date: 31 May 2019

Mark Traynor, Can Chen and Miranda Kitterlin

The purpose of this paper is to examine the decision to contract school meal services and the associated nutritional and financial impacts on school districts. Given the increase…

1080

Abstract

Purpose

The purpose of this paper is to examine the decision to contract school meal services and the associated nutritional and financial impacts on school districts. Given the increase in the use of competitive contracting of public school meal services and the critical role that school meal services play in public health, this is an important subject to investigate.

Design/methodology/approach

A case study was performed using one US school district with privatized food service. Face-to-face interviews were conducted with school food service decision makers. Other data collection included the analysis of public documents such as the school district’s budgets and financial statement reports (the cost per lunch and breakfast meals, the cost for labor, contract, transport, supplies and food expenses) and school food service policies (contract policies). Supplementary data pertaining to district social-demographic profiles and full-time equivalent enrollment figures were also collected from state departments.

Findings

Analysis of interviews revealed that positive financial motivations and impacts were dominant factors related to contracting food services in the district. A significant finding was the relatively short turnaround in the district’s negative financial situation as a result of contracting out the food services. These findings provide valuable insight and support for rural school districts in similar negative financial situations seeking to contract out food services.

Originality/value

Many studies have examined contracting out of technical services, such as transport and waste management, and social services, such as correctional services and health; however, there is a lack of studies documenting the effects of contracting out of school meal services.

Details

International Hospitality Review, vol. 33 no. 2
Type: Research Article
ISSN: 2516-8142

Keywords

Article
Publication date: 1 March 2016

Olga Smirnova, Juita-Elena (Wie) Yusuf and Suzanne Leland

Public agencies contract out to pursue a variety of goals. But, these goals cannot be realized if the performance of contractors is not assessed and monitored. This study examines…

Abstract

Public agencies contract out to pursue a variety of goals. But, these goals cannot be realized if the performance of contractors is not assessed and monitored. This study examines the state of performance measurement and contract monitoring in the U.S. transit agencies. We focus on three research questions: (1) What monitoring capacity exists within transit agencies? (2) What monitoring methods are used by transit agencies? (3) What performance measures are tracked by transit agencies? We find monitoring units are common in a third of agencies in the study. Service and customer complaints are the most common performance measures, while penalties and liquidated damages are the most frequent form of penalties. Finally, we find that transit agencies utilize a variety of output and outcome measures to monitor contractors.

Details

Journal of Public Procurement, vol. 16 no. 2
Type: Research Article
ISSN: 1535-0118

Article
Publication date: 1 March 2004

Trevor L. Brown and Matthew Potoski

In this paper we assess the management costs of delivering services under alternative institutional arrangements. We develop an analytic framework based on transaction cost and…

Abstract

In this paper we assess the management costs of delivering services under alternative institutional arrangements. We develop an analytic framework based on transaction cost and public sector network theories to identify management costs public managers face in delivering services directly and via contract. Results from a survey of refuse collection managers in Ohio indicate that direct service provision carries higher management costs, though when combined with vendors’ activities, contracting carries more monitoring costs. These results suggest two important contributions to knowledge and contract management practice. First, we develop an innovative approach to assessing management costs. Second, we use our framework to determine whether there are differences in management costs under alternative institutional arrangements that managers should take into account as they approach the “make or buy” decision.

Details

Journal of Public Procurement, vol. 4 no. 3
Type: Research Article
ISSN: 1535-0118

Article
Publication date: 11 July 2016

Merethe Dotterud Leiren, Andrej Christian Lindholst, Ingjerd Solfjeld and Thomas Barfoed Randrup

The purpose of this paper is to provide insights into the extent of, rationales for and outcomes of contracting out in the local road and park sectors in Norway. For understanding…

Abstract

Purpose

The purpose of this paper is to provide insights into the extent of, rationales for and outcomes of contracting out in the local road and park sectors in Norway. For understanding the use of contracting out in local governments, it highlights the relevance of the capability perspective in organisational literature as an alternative to the standard efficiency perspective.

Design/methodology/approach

The paper draws on four expert interviews and survey data gathered from park and road managers in Norwegian municipalities in 2015.

Findings

The study suggests that Norwegian municipalities primarily contract out park and road maintenance services when they do not have the capability to perform these services themselves. Cost concerns are also highlighted but of less importance. Moreover, lack of competition renders the use of contracting out as a potentially costly and less satisfying arrangement for organising service delivery.

Research limitations/implications

While the scope is limited to one country, Norway, future research may benefit from the theoretical perspectives, which have been used.

Practical implications

Policy guidelines should support a flexible use of various arrangements for service provision.

Originality/value

The dominating view among proponents of marketisation in the public sector suggests that contracting out to private contractors is undertaken to enhance economic efficiency compared to keeping service production in-house. This study suggests that this is not always the case – even in “most likely” sectors such as park and road maintenance.

Details

International Journal of Public Sector Management, vol. 29 no. 5
Type: Research Article
ISSN: 0951-3558

Keywords

Article
Publication date: 2 May 2022

Wan-Ju Hung and Jiahuan Lu

In recent years, there is a steady increase of studies documenting the emergence of “contracting back-in” in many countries around the world, that is, governments bringing…

Abstract

Purpose

In recent years, there is a steady increase of studies documenting the emergence of “contracting back-in” in many countries around the world, that is, governments bringing previously contracted services back in-house and once again relying on public employees to deliver these services. Through a survey of the academic discourse on contracting back-in, this manuscript describes the phenomenon of contracting back-in and discusses its implications for “bringing the state back in”.

Design/methodology/approach

The manuscript conducts a systematic review of existing literature on contracting back-in with a focus on the scope and rationale of contracting back-in.

Findings

The existing literature demonstrates that contracting back-in is often as common as contracting out and can be found in a variety of countries and across different service areas. Existing studies also suggest that contracting back-in is driven by a mix of managerial, political, and environmental factors. The rise of contracting back-in could imply a revival of the administrative state in public governance and a more dynamic, potentially more complicated, system of public service delivery.

Originality/value

The manuscript contributes to the special issue on “bringing the state back in” through the lens of government contracting. It adds a number of implications to the discussion on the emergence of the “new” administrative state and strategies to reinvent it.

Details

International Journal of Public Sector Management, vol. 35 no. 4
Type: Research Article
ISSN: 0951-3558

Keywords

Article
Publication date: 1 March 2007

To improve acquisition outcomes, in 1997 the District established the Office of Contracting and Procurement under the direction of a newly created chief procurement officer (CPO)…

Abstract

To improve acquisition outcomes, in 1997 the District established the Office of Contracting and Procurement under the direction of a newly created chief procurement officer (CPO). Since then, the District's inspector general and auditor have identified improper contracting practices. This report examines whether the District's procurement system is based on procurement law and management and oversight practices that incorporate generally accepted key principles to protect against fraud, waste, and abuse. GAO's work is based on a review of generally accepted key principles identified by federal, state, and local procurement laws, regulations, and guidance. GAO also reviewed District audit reports and discussed issues with current and former District officials as well as select state and local officials.

Details

Journal of Public Procurement, vol. 7 no. 2
Type: Research Article
ISSN: 1535-0118

Article
Publication date: 1 March 2000

Sandra M. Emerson

Historically, public services were provided by public institutions because they were seen as either the best-insulated or most sensitive to public sentiments. Today, the fusing of…

Abstract

Historically, public services were provided by public institutions because they were seen as either the best-insulated or most sensitive to public sentiments. Today, the fusing of public responsibility with private expertise draws on research and theory stretching from Taylor’s scientific management to Osborne and Gaebler’s reengineering of government. This paper focuses on the historical promises and pitfalls that have come to define public service contracting in the twenty-first century. It describes the experiences of the Los Angeles World Airports (LAWA) with purchase of service contracts. The exploration of LAWA’s approach provides insight on how managers meet the community’s needs for efficiency and equity by capitalizing on contracting for public services.

Details

Journal of Public Budgeting, Accounting & Financial Management, vol. 12 no. 2
Type: Research Article
ISSN: 1096-3367

Article
Publication date: 1 June 2005

Ralf Klischewski and Ingrid Wetzel

Aims to show that workflow management needs to rethink its basis of discussion in order to meet today's challenges and to provide adequate IT support for heterogeneous workflow…

Abstract

Purpose

Aims to show that workflow management needs to rethink its basis of discussion in order to meet today's challenges and to provide adequate IT support for heterogeneous workflow networks.

Design/methodology/approach

First, the need for flexibility in relating resources in workflow management is examined in more detail. Second, some approaches to managing workflows in heterogeneous networks are inspected and it is found that all of these improve flexibility on the basis of contracting services. Third, it is elaborated how processing by contract supports decentralized resource management through dynamically interrelating social and technical services driven by a cycle (“wheel”) of execution and monitoring, evaluation and demand, as well as selecting and contracting.

Findings

Conclusions are drawn for systems architecture and implementation to guide the design of internet‐enabled workflow support.

Research limitations/implications

Important questions for the research agenda are: how can one enrich application‐oriented workflow modelling languages in order to describe processes as consisting of heterogeneous services? How should one design and implement workflow engines which enable the turning of the “wheel” with the support of integrating human activities and technical agency as workflow process services?

Practical implications

The idea of processing by contract may lead to new workflow concepts and technology to meet the challenges of an internet economy based on the “pay as you go” principle.

Originality/value

Whereas the workflow paradigm of the past may be phrased as processing by definition, i.e. process execution according to predefined process patterns and resource relations, the idea of processing by contract is suggested, i.e. a mode of process execution driven by recurrent process evaluation and service contracting.

Details

Business Process Management Journal, vol. 11 no. 3
Type: Research Article
ISSN: 1463-7154

Keywords

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