Harnessing Market Competition in PPP Procurement: The Importance of Periodically Taking a Strategic View

Public‐Private Partnerships (PPP) procurement is routinely portrayed as offering greater scope for harnessing competitive market forces to secure Value for Money (VfM) than traditional procurement approaches ( OECD 2008 ). The aim of this article is (a) to demonstrate the importance of periodically taking a more systematic and strategic view when assessing VfM in PPP procurement ( OGC 2003 ), and (b) to develop an analytical framework for such an analysis. Road infrastructure procurement in South East Queensland is used as a case study to test the usefulness of the proposed framework, and to show how a narrow focus on individual contracts increases the risk of overlooking overdependence on one supplier ( OGC 2003 ). Discussion focuses on the need to combine detailed analysis of individual contracts with longitudinal analyses of market competitiveness when assessing best VfM.     

Public enterprise reform: Managerial autonomy,accountability and performance contracts

The underlying assumption in this paper is that autonomy and accountability are both fundamental prerequisites for the effective functioning of state-owned enterprises. The paper first examines the traditional, dichotomous approach to the autonomy-accountability conundrum. This approach posits the relationship as process oriented, pervasive, quantitative and based on a priori controls. A more recent view of control and accountability as a posteriori, qualitative, strategic, results-oriented and non-zero sum is then briefly analysed. The paper presents a review of the theory and practice of performance contracts (PC) as tools to implement the latter approach. Three basic models of PCs—Senegal's contrat plan, Pakistan's signalling system and India's memorandum of understanding—have been analysed, comparing the negotiating process, major players, substantive elements and results. The contrat plan is more of a legal document, at least in formal terms, than the other two. None of the three models, however, provides any sanctions in case of a violation of the contract by the governments. Although the Indian and Pakistani PCs appeared to be more successful than the Senegalese contracts, the relationship between financial performance and performance contracts remains far from conclusive. In all the three countries, the contracts have failed to provide a single window through which government-enterprise interface can be effectively managed. Thus the problem of multiple principals and single agents remains unresolved.     

Leadership and the public sector: an internationally comparative benchmarking analysis

In this article the concept of leadership is explored. Particular attention is given to examining the dynamics of individual and team leadership, as it is postulated that the impact of top people and top teams is crucial to the running of today's organizations. The results of an extensive survey conducted across the departments of the Civil Service of a European country government will be presented. These results will be benchmarked against the results of a worldwide survey of business leaders, spanning 12 countries and the responses of top managers in National Health Service (HNS) Trusts, UK. Emphasis will be given to the necessity of conducting effective team leadership through high quality dialogue and through cabinet responsibility in order to successfully lead and maintain the organization on its agreed path. Finally, approaches to the development of leadership for those already in top positions and for those entering into such challenging positions, will be discussed.     

Sustaining Peace One Day at a Time: Inclusion,Transition Crises,and the Resilience of Social Contracts

ABSTRACT

This article argues that inclusion is a key driver of resilient social contracts and a foundation for sustaining peace. Drawing on case studies conducted under the Forging Resilient Social Contracts project and building on the literature on transitions from war to peace and authoritarianism to democracy, the theoretical framework links inclusion to peace sustainability. Interrogating how and why processes of inclusion matter, we argue that resilient social contracting is driven by elite inclusion, societal inclusion and their interactions. Four case-studies illustrate the arguments. Resilient social contracting, findings suggest, allows countries to weather crises and survive to ‘transition another day’.     

Pricing public sector services: The tuition gap

The large gap between the tuition charged by public colleges and universities and private ones is likely to cause severe disruptions to the private sector institutions of higher education. If it continues, private sector institutions may once again become bastions for students who can afford their services, rather than for those who merit them, and these institutions will diminish in size and diversity as well. Public sector institutions will become relatively stronger - not solely for reasons of effectiveness, efficiency, or equity - but because of the competitive advantage that the tuition gap affords them. This paper explores the feasibility and desirability of the three methods of correcting this problem, using real cost and demand data from the University of Massachusetts for illustrative purposes. It concludes the subsidization of students (rather than institutions) and raising public sector tuitions are two possible alternatives to the present tuition gap.     

Government capacity to contract: health sector experience and lessons

Using case-study material of contracting for clinical and ancillary services in the health care sector of developing countries, this article examines the capacities required for successful contracting and the main constraints which developing country governments face in developing and implementing contractual arrangements. Required capacities differ according to the type of service being contracted and the nature of the contractor. Contracting for clinical as opposed to ancillary services poses considerably greater challenges in terms of the information required for monitoring and contract design. Yet, in some of the case-studies examined, problems arose owing to government's limited capacity to perform even very basic functions such as paying contractors in a timely manner and keeping records of contracts negotiated. The external environment within which contracting takes place is also critical; in particular, the case-studies indicate that contracts embedded in slow-moving, rule-ridden bureaucracies will face substantial constraints to successful implementation. The article suggests that governments need to assess required capacities on a service-by-service basis. For any successful contracting, basic administrative systems must be functioning. In addition, there should be development of guidelines for contracting, clear lines of communication between all agents involved in the contracting process, and regular evaluations of contractual arrangements. Finally, in cases where government has weak capacity, direct service provision may be a lower-risk delivery strategy. © 1998 John Wiley & Sons, Ltd.     

Reforming Social Services in Hong Kong: The Role of Contracting and Performance Management in the Non‐Profit Sector

Contracts and performance management, along with the concept of consumerism, have become the fundamental metaphors for New Public Management (NPM) and key changes in the public service. ‘Doing well while doing good’ and finding generally acceptable accountability measures for social services have become the perennial aspirations of planners, service providers and funders. This article examines the contingent factors and rationales behind the quality movement and recontracting exercise in reforming the delivery of personal social service programs in Hong Kong within the framework of New Public Management (NPM). It explains the use of long‐term relational contracts rather than the standard business contracts between the government as funder and non‐profit organisations as service providers. It also deals with the complex relationships among quality issues, quality standards, consumerism, accountability, performance indicators, and performance management.     

The Importance of Contract Design

This article examines the contract design decisions of three federal agencies—the Departments of Health and Human Services, Defense, and Homeland Security—using five years of data from the Federal Procurement Data System. Three basic contract design elements are charted—type (fixed price versus cost reimbursement), length, and value—across simple to complex products. All three agencies use short‐term, fixed‐price contracts for the majority of the purchases that they make. This basic contract design allows agencies to tap the benefits of competition: innovation and cost‐efficiency. However, the Departments of Defense and Homeland Security often dramatically increase the length and value of contracts through modifications to initial agreements. This approach forgoes the benefits of competition and may expose the agency to the risk of cost overruns, delivery delays, and diminished product quality.     

Expanding housing choices for the sector popular: Strategies for Mexico

Abstract

By the year 2000, some 40 million people in Mexico will live in settlements commonly called the informal sector. Most will live in houses that they have constructed themselves and that have some infrastructure deficit. To meet their needs, the authors propose a set of demand and supply strategies. Emphasis is placed on the increased use of small group savings programs, the provision of progressive infrastructure, and the creation of housing‐related employment. The supply of low‐cost land must be increased, which will necessitate reforms in the ejido land tenure system. Examples of locally derived, non‐government‐supported betterment programs are presented.

The article concludes by calling on the federal government to create stronger links with the informal sector and to reestablish its role as the supporter of social housing in Mexico.     

Performance Contracts and Goal Attainment in Government Agencies

ABSTRACT

Public sector reforms introducing performance contracts provide a unique opportunity to investigate goals set for government agencies and factors affecting goal attainment. The article maps the set of goals contained in performance contracts for Danish government agencies in 2000, 2005, and 2008. Performance contracts are found to reflect the complex character of agency goals with performance goals ranging from project initiation to reducing case work time or increasing productivity. The article also analyzes factors affecting goal attainment. Agencies with a large percentage of goals focused on project initiation and production exhibit higher levels of goal attainment. Also, goal attainment improves as agencies and ministries gain experience with performance contracts.

For practitioners, it is relevant that contracts target a wide variety of goals and over time focus increasingly on results. Contracts serve to focus agency attention as three quarters of all demands are met. A crucial factor seems to be whether agencies are in control of formulating and meeting goals. Efforts to improve the contract regime may thus concentrate on enabling government departments to secure ambitious and relevant performance goals.     

Global norms in domestic politics: environmental norm contestation in Cambodia's hydropower sector

Policymakers in many developing Asian countries have commonly relied on investment incentives as a major policy instrument to attract foreign investment. Using comparative case studies of Asian transnational corporations (TNCs) in Southeast Asia, this paper argues that investment incentives per se are ineffective in attracting foreign investment. The paper first examines the role of government incentives in the inflow of foreign investment, with particular reference to the Southeast Asian region. It then provides a comparative study of Hong Kong and Taiwanese investments. Hong Kong TNCs are shown to have invested in Southeast Asia because of market or market‐related reasons, not investment incentives per se. To these firms from Hong Kong, investment incentives are more a kind of post hoc rationalization of their decision making. For the Taiwanese investors in Malaysia, government incentives are less important than the existence of market access and the friendly host country environment. The paper also suggests some implications and specific policy recommendations for policymakers in host country governments. Instead of over‐reliance on investment incentives, host country governments should be more concerned with: 1) a commitment to internationalization through the promotion and marketing of international images; 2) the upgrading of domestic resources through continuous training and development; 3) a more efficient allocation of resources; 4) supra‐national coordination and promotion.     

The “Perverse Result” of Disability Rights: Deregulating Care Workers’ Labor Unions in the Supreme Court

In Harris v. Quinn (2014), the United States Supreme Court used disability rights rhetoric of independence and control to argue that disabled people—not the State—are the real employers of in-home care workers. Consequently, the State cannot force care workers to pay labor union fees. Justice Alito’s majority decision interprets the employment contract as a capacity contract: a device that uses the recognition of equal cognitive capacity to obscure domination. Alito ignored the vulnerability of disabled people and in-home care workers to legitimize neoliberal cutbacks. In her dissent, Justice Kagan argued that disabled people, care workers, and the State forge multiple and iterative contracts. Using Kagan’s dissent, Charles Mills’s critique of ideal theory, and Susan Burgess and Christine Keating’s participatory social contract, I argue that an emancipatory contract must replace cognitive capacity as the condition of membership with the recognition of shared human vulnerability amid oppressive conditions.     

What Really Happens: Department Secretary Appointments,Contracts and Performance Pay in the Australian Public Service

This account of the practice in the Australian Public Service (APS) for appointing department secretaries, using contracts and rewarding for performance, is based on my own experience in being appointed, reappointed and not reappointed, and in receiving and not receiving performance pay. It also draws on my experience as Public Service Commissioner in assisting with appointments and performance pay of secretaries. I also discuss weaknesses in the current system, and the drift to ‘politicisation’. I was first appointed as a department secretary at the end of 1993 after 25 years in the APS including 15 years in the Senior Executive Service (SES) in three different portfolios (Social Security, Finance and Defence). I was secretary of three different departments (Administrative Services, Housing, and Health, some of which went through changes in name and responsibilities during my tenure) before being appointed as Public Service Commissioner from the beginning of 2002. I retired from the APS in June 2005.     

Being reformed: Subjectification and security sector reform in the Congolese armed forces

In contrast to most studies addressing security sector reform (SSR) in Africa, this article queries defence reform efforts in the Democratic Republic of the Congo (DRC) from a governmentality perspective and hones in on processes of subjectification and modes of agency among members of the Armed Forces of the DRC (FARDC). Based on extensive field research in the DRC, it explores how army staff produce themselves through (and outside of) the ways in which they are ‘hailed’ into subject positions in donors’ efforts to govern. In asking how FARDC staff respond, position, and produce themselves in relation to external reform efforts and the attending governing technologies and techniques, the article contributes to the increasing – yet limited – scholarly attention to those being ‘reformed’ through SSR efforts. Ultimately, attending to the specificities of how processes of subjectification are experienced from the perspective of those who are to be reformed problematizes the simplified notions of lack of political will and commitment, obstruction and ‘spoilers’ that are so prevalent in the SSR literature, suggesting that these processes are heavily shaped by memories of colonialism and exploitation.     

A transaction-based approach to policy intervention

A transaction-based approach to policy intervention is presented. The approach overcomes a number of weaknesses in current approaches to policy intervention. The approach involves three main conceptual elements: transactions, transaction governance mechanisms, and governance principles. The transaction is taken to be the basic unit of analysis. Profiles of transactions vary along a number of transaction dimensions. Transaction governance mechanisms - such as, for example, government service, regulation, contracts, vouchers, markets, taxes, and self-service - are each suitable for governing transactions having particular profiles. A mechanism will fail when used to govern transactions not fitting the profile. Governance principles are criteria or expectations - for example, efficiency, justice and liberty - used to judge how well a mechanism fulfills or achieves important societal goals. Specific choices of governance mechanisms (from the set that are technically feasible) therefore should be made according to how well they satisfy these governance principles. Public high school education is used as an example to illustrate the approach. A number of conclusions are offered.This is a revised version of a paper presented at the Annual Meeting of the American Society for Public Administration Portland, Oregon, April, 1988.     

The Compound Machinery of Government: The Case of Seconded Officials in the European Commission

This article explores the compound machinery of government. Attention is directed toward decision making within the core executive of the European Union—the European Commission. The article studies seconded national civil servants (SNEs) hired on short‐term contracts. The analysis benefits from an original and rich body of surveys and interview data derived from current and former SNEs. The decision‐making dynamics of SNEs are shown to contain a compound mix of departmental, epistemic, and supranational dynamics. This study clearly demonstrates that the socializing power of the Commission is conditional and only partly sustained when SNEs exit the Commission. Any long‐lasting effect of socialization within European Union's executive machinery of government is largely absent. The compound decision‐making dynamics of SNEs are explained by (1) the organizational affiliations of SNEs, (2) the formal organization of the Commission apparatus, and (3) only partly by processes of resocialization of SNEs within the Commission.     

Equity in Federal Contracting: Examining the Link between Minority Representation and Federal Procurement Decisions

The federal government increasingly relies on nongovernmental organizations for procuring goods and services. This long‐term trend presents a significant challenge for administrators because it risks the egalitarian values of democracy by further distancing administrative action from direct, participative, democratic oversight. The authors put forward a theory of representative bureaucracy as a way to reconcile democracy with the reality of the contemporary policy process in which unelected officials are the principal decision makers. The theory is tested in the domain of federal procurement, specifically within the contract award decisions of 60 federal agencies over three years. The authors argue that increased minority representation in leadership positions results in an increased proportion of federal contracts awarded to small minority‐owned firms.     

Diffusion milieus as a focus of research on innovation in the public sector

Public policies to increase the efficiency of state and local governments through fostering the use of new technologies are based, implicitly at least, on theories of diffusion. Existing theories of diffusion have been found to be deficient. This paper presents an approach to the diffusion of technological innovations in state and local governments organized around the concept of diffusion milieus.A diffusion milieu contains those elements external to the organization which bring pressure to bear on the organization to alter its existing practices, which define the range of feasible alternatives to these practices, and which condition the information flow on the performance characteristics of the proposed innovation(s). These milieu components are then filtered through the internal decision-making process(es) of the organization to produce a decision to accept or reject the innovation(s). More specifically, the milieu contains (1) the specific nature of the demands upon the agency to change behavior (performance gaps), (2) the supply of alternatives to existing practices (technological change), (3) agency-executive relationships, (4) the activities of suppliers in marketing innovations, (5) the resources available to the agency to acquire new techniques, (6) the characteristics of the knowledge infrastructure which affect the search behavior and the degree of uncertainty associated with adopting new techniques, (7) the impact of intergovernmental relationships, and (8) citizen demands. The components of the diffusion milieu are then (9) related to a set of agency decision-rules concerning the adoption of new techniques.The rate of diffusion in each field will depend upon themagnitude of the components and on thelinkages between them.Functional fields differ in both respects.Research for this paper was supported by a grant from the National Science Foundation, Office of R & D Assessment. We have benefited from the helpful comments of Professor Marvin Rozen, an anonymous referee and the research assistance of Ms. Lee Ann Kozak. The views expressed in this paper are the sole responsibility of the authors. An earlier version of this paper was presented at the 1975 American Political Science Association meetings.     

Should Government Go It Alone or With a Partner? A Comparison of Outcomes from a Work Release Program Using Different Policy Tools

This article compares labor market outcomes from two different approaches to a work release program in Illinois: direct provision by a government and a purchase‐of‐service (POS) contract between government and a public charity. Significantly better employment and earnings outcomes were associated with the POS contract. To better understand the reasons for the success of the POS contract, the authors further examined the specific terms of the contract, organizational expertise, and the political context of POS contracts. The results are organized according to the main theoretical assertions. Findings add to the weight of evidence that contractors, like public charities, can be valuable government partners for addressing challenging social policies and programs.