Contracting Back In

While privatization is the most popular form of alternative local government service delivery, longitudinal analysis shows these contracts are not stable over time. Using ICMA data we can track the dynamics of local government contracting.  We find contracting back in (or reverse privatization) is growing in importance.  For more discussion of this phenomenon see, Hefetz and Warner 2004 Privatization and its Reverse.  For a more descriptive account with case studies, see Warner and Hefetz 2001 Privatization and the Market Structuring Role of Local Government.

Why are contracts unstable?

Also see Ballard and Warner 2000 Taking the High Road: Local Government Restructuring and the Quest for Quality (a PDF version is also available) for an analysis of case studies which show why governments bring the work back in. You may also search our online database of case studies of contracting back in.

Please help us understand why contracting is such a dynamic process. Take a moment to fill out the online survey of what services your government has brought back in and why.

If you would like to add a case study to our database, click here.