Privatization is rapidly becoming a popular option for increasing the efficiency and effectiveness of service provision. unfortunately, too often privatization is equated with contracting out. in thispaper privatization is distinguished from contracting out, when privatization is necessary is discussed, and a four-step approach to implementing privatization is suggested. an understanding of privatization concepts requires an analysis of the services to be delivered and the contracting environment. if agencies blindly apply traditional contract procedures in the wrong environment, the result is frequently the "publicization of private service, " which has the worst characteristics of both the public and the private sector. this paper appears in transportation research record no. 1156, transportation systems planning and management.
Abstract