Competencies in Local Government Contracting Out: A Critical Review

Abstract

This paper reviews the current literature on contracting out competencies and capacities in order to ensure successful implementation of contracting out initiatives. After a brief discussion on concept, this paper illustrates the various competencies and capacities needed during contracting processes. The complete b faith of the neo-liberal development paradigm in market-friendliness and contracting out ignores the competences needed to guarantee effective contracting out. The question of which sector or combination of sectors is best at offering public services have become more relevant and controversial overtime. Contracting out of the provision of public services is part of efforts to reconfigure state-market relations in order to give more prominence to markets and the private sectors. Applying the competencies approach helps determine which model of provision will provide optimal public services to citizens. This paper argues that the effective and efficient management of the relationships with the private sector by government agencies requires a solid foundation of project management and policy competencies. This study found out that legal, regulatory and policy, organisational and individual capacities are cornerstones of effective contract management process. The Bowman et al.’s (2010) Competency Triangle model of Public Service Professionalism informed remarkably the study.

Keywords: contracting out, private sector, public sector, competency, capacity