General
This section brings together a range of reports, including studies commissioned by various international governments on subjects relating to the cost savings associated with outsourced public services.
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How Expensive Are Cost Savings? On the Economics of Public-Private Partnerships Valila, Timo, 2005 European Investment Bank The paper analyses the pros and cons of public-private partnerships by identifying the sources of both higher benefits and higher costs associated with them as compared to traditional public investment. In addition the paper considers public-private partnerships from a macroeconomic perspective, focussing on their impact on fiscal policy and aggregate growth.
Achieving Value for Money in the Delivery of Public Services (PDF) House of Commons Committee of Public Accounts, 2005 The Stationery Office Guidance on overcoming the barriers to efficient and effective implementation of government programmes, based on the experience of the previous decade. HC 742 UK
The Efficiency of Public Sector Outsourcing Contracts: A Literature Review (PDF) Jensen, Paul H. and Stonecash, Robin E., 2004 Melbourne Institute Working Paper No. 29/04. After discussing the differences between privatisation and outsourcing, this literature review considers the arguments for and against outsourcing, examines the empirical evidence as to whether savings occur and also looks at whether they persist over time. ISBN 0 7340 3171 8 Australia
The Economic Efficiency Of Accommodation Service PFI Projects (PDF) Rintala, Kai, 2004 VTT Publications 555 This research consists of two case studies on large and complex PFI accommodation projects which use interviews, project documentation and expert opinions to collect data. ISBN 951-38-6434-0 UK
Staff Working Paper: Techniques for Measuring Efficiency in Health Services (PDF)
Peacock, Stuart; Chan, Chris; Mangolini, Melvino; Johansen, Dale, 2001
Productivity Commission
Modern Government, Modern Procurement (Word)
Office of Government Commerce (OGC), 1999
This OGC report sets out the key recommendations of the Gershon Review of Civil Government Procurement and the Second Bates Review of the PFI and PPPs, and the Government's plans for their implementation.
Competitive Tendering and Contracting by Public Sector Agencies' (PDF)
Industry Commission (now the Productivity Commission), 1996
Report No. 48
A report of an Industry Commission study looking at issues in public sector contracting, with recommendations and conclusions. It touches on almost all aspects of the performance measurement debate including incentives, inputs vs outputs, monitoring, setting requirements, perverse incentives. Appendix E contains a review of empirical studies into the cost effects of contracting. There is also a case study of the experience of contracting out Amberly RAAF base, which include a cost-benefits analysis.
Making Markets: A Review of the Audits of the Client Role for Contracted Services
Audit Commission, 1995
HMSO
Local Audits were carried out on 380 local authorities and reviewed against the themes of the Audit Commission's 1993 report,
Realising the Benefits of Competition: The Client Role for Contracted Services Audit Commission, 1993 HMSO A report on the implementation of Compulsory Competitive Tendering since the Local Government Act 1988 and the problems of working in a contractual environment. It considers ways of overcoming common problems and makes recommendations on good practice whereby the local authority is cast in the role of a client defining the work to be delivered by the contractor and letting and managing the contract. ISBN 011886 098 4 UK
Cost Savings from Privatization: A Compilation of Study Findings (PDF) Hilke, John, 1993 Reason Foundation A compilation of the findings from cost studies relating to privatization, listed alphabetically by service category. The studies are drawn from a range of coutries. Full bibliographic details are provided for each study featured. USA
How to Compare Costs Between In-House and Contracted Services (PDF) Martin, L, 1993 Reason Foundation A document that summarises accepted financial practices for estimating the total cost of a contract, which includes monitoring and administration. The question of which costs should be considered fully allocated, avoidable, and marginal in comparing service delivery options is also addressed. USA
Federal Productivity: Potential Savings From Private Sector Cost Comparisons General Accounting Office (GAO), 1986 A cross-sector GAO report on the potential financial savings for US federal government of cost comparisons carried out under the A-76 competition programmes. USA
Public Employee Unions and the Privatization of "Public" Services Bennett, James T. and DiLorenzo, Thomas J., 1983 Journal of Labor Research, Volume IV, Number 1. An examination of the relative costs of public and private provision in the USA, by comparing the findings of several GAO reports covering a range of sectors. The study focuses on costs relating to personnel and looks at the role of employee unions. USA
Contracting Out for Federal Support Services:Potential Savings and Budgetary Impacts (PDF) Congressional Budget Office (CBO), 1982 A study by the CBO of the potential financial impacts of contracting out US federal government support services. The report covers a range of activities in different sectors, but there is a particular focus on the defence sector, where the largest contracting programmes have been undertaken. USA
GSA's Cleaning Costs are Needlessly Higher Than in the Private Sector (PDF) United States General Accounting Office, 1981 A report form the Comptroller of USA stating the necessity of determining whether cleaning services should be provided by its in-house staff or by contract personnel, making the case that traditional ways for providing such services are inefficient. USA