Why Do Government Contract Public Services?

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Theoretically, governments contract public services to private entities to lower costs and increase efficiency. The idea of contracting public services is logical, governments have shrinking financial resources therefore contracting public services can save money. Many states and cities have found that millions of dollars can be saved if they use outside contractors or a neighboring city’s services. However, government outsourcing of public services is not a simple solution. When governments enter into poorly conceived contracts, there is a problem. In addition contracting public services can generate cost increases that exceed the costs of in-house services. Substandard contract oversight, can open up government to vulnerabilities, corruption
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