COST COMPARISON MODEL FOR CONTRACTING OUT GOVERNMENT SERVICES

This paper presents a model that provides a method for making valid cost comparison between the total costs of private and public performance of public services. Properly applied, the model will give reasonable approximations of the actual total costs. Comparison of only the performance costs, rather than the total governmental costs, may yield incorrect conclusions concerning the lowest-cost service-delivery method. It is noted that privatization is a promising alternative to traditional service-delivery approaches. Contracting out the operations of public services, a subset of privatization, offers significant cost savings through competitive bidding for public services.

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  • Accession Number: 00495173
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Jun 30 1990 12:00AM