Warner, M.E. with Mike Ballard and Amir Hefetz, 2003. "Contracting Back In - When Privatization Fails," Chapter 4, pp. 30-36 in The Municipal Year Book 2003. Washington, DC: International City County Management Association.
Between 1992 and 1997, the most common forms of alternative service delivery (privatization to for profits and non profits and inter-municipal cooperation) increased only slightly. Service delivery by public employees remained dominant. The stability in these trends belies a more dynamic process of contracting out and back in which reflects the key market structuring role played by local governments. During this period, 96% of responding governments newly contracted out at least one service and 88% brought at least one contracted-out service back in house. The reasons for contracting back in include lack of a competitive market of alternative suppliers, difficulties with contract specification, and the high costs of monitoring.
Subject: Privatization