Contracting Capacity and Perceived Contracting Performance: Nonlinear Effects and the Role of Time

Abstract

Most people agree that, so far, contracting out has only worked in certain service areas and under certain circumstances. Contracting out has become a popular strategy in public service delivery, but it remains uncertain whether and how government can ensure contracting performance. As a result, a growing literature emphasizes the importance of governments' contracting capacities. Yet very few studies have empirically assessed how contracting capacities relate to contracting performance. Th is article identifi es four types of contracting capacities in terms of agenda setting, contract formulation, contract implementation, and contract evaluation, relating them to three performance dimensions including cost, effi ciency, and quality. Drawing from a manager survey from Taiwan, the article shows that the relationships between the capacities and the performance indicators are not always straightforward or linear, and the relationships are complicated by the role of time. Th e results suggest that contracting capacities have both benefi ts and costs, and the solutions rooted in the economics theory should not be taken beyond their appropriate boundaries.

What is the Effect of Performance Measurement on Perceived Accountability Effectiveness in State and Local Government Contracts?

“…While performance monitoring and measurement have a long history in the United States, these functions traditionally receive little attention by government managers (Van Slyke 2003). Little is known about the effectiveness and relative efficacy of measures used by the public managers overseeing contract implementation (Ho 2006;Yang, Hsieh, and Li 2009). …”

“…Contract management involves four important policy choices, including the make-or-buy decision (or agenda setting), contracting formulation, implementation, and evaluation (Brown and Potoski 2003;Yang, Hsieh, and Li 2009). The specific managerial activities pursued during these phases include evaluation of provider markets, political feasibility assessments, initial examination of service characteristics, pre-award conferences, ongoing contract specification, communication, data collection, reporting, inspections, sanctioning, terminations, and renewals.…”

“…The contract formulation phase involves planning for performance measurement and the preliminary measurement of the contractors' past performance (Yang, Hsieh, Li 2009). The latter includes investigating the contractor's reputation, reviewing its past service quality, management capacity, regulatory compliance and professional certifications.…”

The many outcomes from contracting out: The voice of public managers

“…One key question in this endeavour is to acknowledge the stakeholder perspective and explore what can be gained from including this. Public managers responsible for service provision contracted out to private service providers are key stakeholders and play pivotal roles when implementing contracting out, as they are routinely involved in the practicalities of contracting decisions (Brown and Potoski, 2003;Yang et al 2009;Lindholst and Bogetoft, 2011;Davis et al, 2016). They are involved in developing and preparing tender and contract materials, carrying out procurement processes, evaluating tenders, overseeing contracts and monitoring private contractor service delivery.…”

Desempenho do contrato de gestão e a situação econômico-financeira dos hospitais gerais administrados por organizações sociais de saúde: uma análise no Estado de São Paulo

“…O processo de contratualização passa por três fases: avaliação da viabilidade, que implica na capacidade de analisar se o bem ou serviço deve ser produzido internamente pelo governo ou contratualizado (make or buy decision); capacidade de implementação, que referese à abertura do processo de competição com os fornecedores, escolha do prestador de serviço, negociação e elaboração do contrato (inclui o processo de desenho e especificação do contrato); e capacidade de avaliação da contratualização, ou seja, a atividade de monitorar e avaliar o desempenho do contratado para determinar se está de acordo com as atribuições especificadas em contrato (Brown & Potoski, 2003;Domberger & Hensher, 1993;Yang, Hsieh, & Li, 2009). …”