Privatization (Public Administration)

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  • The government practice of engaging a third party to deliver a service but retain its role in policy. For example, government may contract with a private firm to take care of computer programming or with a nonprofit to deliver a service to welfare recipients. In each of these scenarios, government provides the parameters for the party providing or delivering the service and the funding. A majority of privatization has occurred in human services, as a result of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996.

    Contracting is the most common mechanism used for privatizing public services. A government that contracts regards the resources required to manage the contract as part of the cost of contracting. Moreover, it trains the contract managers to develop contract ...

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