NON-PROFIT CONTRACTING FROM 1982-1997: A COMPARISON OF SECTOR BASED FACTORS

Abstract

The quest for local governments to provide goods and services to an ever-expanding and more demanding public has created an environment which is ripe for alternative service delivery approaches (ASDAs). Although these approaches are commonly grouped under the umbrella term of “privatization”, there are many different options which are available to governments which seek these alternatives. The most common form of privatization is service contracting. Even within this specific form of alternative service delivery, governments may opt to contract with different types of firms. While much has been written about the decision to contract out with private firms or another government, there is a relative dearth of knowledge on how non-profit organizations compete within ASDAs. In addition, because non-profits are fairly new to the contracting scene, there is little understanding on how the choice of providers has changed over the years—based on service sector. This study will replicate and update the 1982 Ferris and Graddy study of service contracting—which attempted to predict which government services would be contracted to specific service areas. While the Ferris and Graddy study is well-known and respected in the field of public administration, the data contained within it is quite dated. This study will attempt to create a more comprehensive and current model of sector choice in service contracting by looking at the incidence of, and trends in city and county-based contracting over the last sixteen years. By doing so, it will also contribute to a greater understanding of non-profit contracting.

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