Private contract services are fee-based arrangements between public agencies and the private sector for services that are typically performed in-house, such as planning and environmental studies, program and financial management, and/or operations and maintenance. While traditionally performed by public employees, maintenance services are increasingly being outsourced to private companies. A maintenance contract assigns responsibility for facility upkeep to a private company based on specified performance standards for a certain period of time, often for five years. These contracts generally are awarded on a competitive bid process to the contractor offering the best price and qualifications. The potential benefits of fee-based private contract services include:
• Reduced work load for agency staff;
• Potential for reduced costs; and
• Opportunities to apply innovative technologies, efficiencies, and private sector expertise.