The Dynamics of Local Service Delivery Arrangements and the Role of Nonprofits

This article examines the relationship between “contract failure” (the bringing “in-house” of previously contracted services) and service characteristics. The connection between contract failure and nonprofit and for-profit status is also explored. The analyses are performed using International City/County Management Association data and three service typologies constructed by previous scholars. The findings indicate that: 1) contract failure is more common than anticipated, and is actually relatively more common than privatization; 2) while service characteristics are associated with the frequency of contract failure, the nexus is tenuous; 3) nonprofit entities are less prone to contract failure than their for-profit counterparts.