Human Services Contracting: Environmental, Behavioral, and Organizational Conditions

Government's practice of contracting out with outside organizations for public services has become a major recommendation for cutting costs and improving service delivery. However, few scholars have examined this alternative in terms of the requisite procedures and conditions that lead to the expected benefits. This article focuses on three conditions-competition, rational decision-making, and government over-sight—that appear to be critical to the contracting process. To evaluate these conditions and their presence in human service contracting, research in two policy areas is presented-social services (Title XX) and employment and training services (Comprehensive Employment and Training Act, or CETA), as implemented in Michigan state and local government. The conclusion suggests key organizational, behavioral, and environmental factors that the pro-contracting argument overlooks.