Contracting public services: the management of compulsory competitive tendering in two county councils (original) (raw)
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Compulsory competitive tendering in local government: the first round
Public Administration, 1991
This article presents the results of a survey of the initial impact of compulsory competitive tendering (cm) under the Local Government Act 1988. After an outline of the provisions of the legislation and the mechanisms for their implementation the outcome of the first round of CCT is described. While most services have been retained in the public sector, a number of authorities have chosen to use private contractors. Differences in the patterns between different types of authority are examined. Finally, the paper considers the prospects for subsequent phases of CCT.
Environment and Planning A, 1995
The process of compulsory competitive tendering (CCT) for the provision of local-government services has forced significant changes to the way in which such services have been provided, whether such services have been contracted out or remain in-house, and has spawned a considerable literature on the impact of these changes on the quality, reach, and cost of public services. The primary focus of this literature has been on service users (or ‘consumers’) and the local taxpayer. In this paper, however, we attempt an analysis of these changes in terms of their impact on the nature of work within public sector services. Empirical evidence of geographical and sectoral variations in the degree of success of the private sector in winning contracts is considered, and explanations for these variations are offered. In particular, the discussion focuses on variations in the form of work in different sectors and the treatment of workers in different places and in different types of services, th...
Competitive Tendering: Lessons from the Public Sector
Business Strategy Review, 1992
The introduction of at first voluntary and then compulsory competitive tendering have ushered in a decade of change in the provision of public services. In this paper, the authors examine just how radical that change has been. Utilising data from local authorities the authors find that, in refuse collection at least, competitive tendering has reduced costs by forcing improvements in labour productivity. But, in comparing the relative efficiencies of the large majority of in house tender winners with the comparatively smaller set of private contractors awarded tenders, the authors conclude that scope for greater cost reductions remain.
DergiPark (Istanbul University), 2001
The New Public Management (NPM) may be seen as a set of managerial techniques used by administration for the prevention of fragmentation during the adoption of new public service delivery system. NPM attempts to change the structure, system, staff and culture of a public organisation. Therefore, when NPM is introduced, it should be examined from the context of these four aspects of public organisation. This discussion of NPM will be illuminated through a case study of the introduction of compulsory competitive tendering (CCT) in local governments in the United Kingdom. It concludes that CCT has had a profound impact on local government in attempting to replace the traditional model of local authority. It has brought a number of substantial changes to local governments.
Competitive tendering in local government: a review of theory and evidence
Public Administration, 1998
The introduction of compulsory competitive tendering in UK local government reflected conventional public choice theories of bureaucracy. These theories suggest that competition for service contracts will lead to lower expenditure and higher efficiency. Extensions and criticisms of the classical public choice model yield very different conclusions. First, the problems of bureaucratic supply are less severe than originally assumed, and secondly competition may itself generate new problems such as transaction costs, erosion of trust between principals and agents, and rent seeking. The impact of competition on spending and efficiency is therefore indeterminate, and must be established empirically. However, studies which evaluate the effects of competitive tendering in local government are few in number, cover a limited range of services, and are methodologically flawed. Therefore neither the initial imposition of competitive tendering by the Conservatives, nor its planned abolition by Labour, can be traced to a solid foundation of theoretical or empirical support. Theoretical and methodological problems that need to be resolved by further empirical studies are identified.
Client and contractor roles in a changing local government environment
Local Economy, 1989
The advent of Compulsory Competitive Tendering (CCT)1 exposes large swathes of local authority services to private sector competition. The challenge facing those in local government who wish to protect in-house services is how to adjust to a new commercial contracting culture without losing the values of public service. The Audit Commission argues that such a culture requires a hard split between the Council as a client, who sets service standards and ensures value for money and its contractor side that concerns itself with performing to standard and price. This article looks at both the legal and operational impetus for such a client-contractor split, from a DSO (Direct Service Organisation) perspective, and examines the strategic issues raised for local authority reorganisation.