Moving Toward Market-Based Government: The Changing Role  of Government as the Provider

One of the major changes taking place today in government management  (federal, state, and local) is the shift from the government as the historic "provider" of services to the government as the "manager of the providers" of services to the public.  The basic rationale for this change is that - when properly implemented - it results in significant benefits, in terms of improved performance and lower costs, to both the government and to the public being served.  Essentially, it is a shift from monopoly supplier (the historic government "provider") to a competitive environment. These benefits are realized regardless of whether the winner of the competition is the public or private sector supplier.

This report provides the background and highlights of the various sourcing options, with case studies of the best and worst practices.  It discusses the common arguments against changing the role of government, summarizes the actual results achieved, and presents specific recommendations for moving forward.