Contracting out is where an organization uses a private firm to provide services under strict conditions. Many organizations are increasingly adopting this method because of its many advantages. One advantage is that it allows experts to handle projects. Contracting out can be done between the government and a private entity, or a private entity and another private entity. This paper will focus on the former. As a contract oversight manager in the health sector, I have experienced the whole contracting process. Contracting is a highly regulated activity in the government (Bel & Gradus, 2017). Before the contract was awarded, we were required to make it public. We then allowed bidding to promote transparency (Peeters, 2013). After that, we awarded the contract to the winner based on several factors such as the bid with the least price, the ability to finish in the least time, and the bid's capability to exclude the extremes. As per Cohen and Eimicke (2018) on the insights of an oversight manager's roles, my part was to ensure that the private firm provided the right quality and quantity of medicine within the time specified. We faced several problems during contracting, ranging from awarding the contract to the right firm and overall contract management. A lack of trained personnel in contract management is the source of failed projects (Van Weele, 2014). There was also government interference during the bidding process. Additionally, parts of the contract required interpretation by lawyers for proper understanding. I believe that contracting out is an excellent strategic move. It should proceed, but the importance of accountability should be emphasized. According to J. Cooper and P. Cooper (2002), good ethical behaviors should also be promoted throughout the process. As an oversight manager, we ensured this through open public bidding; we also used whistleblowers. Precise requirements in the contract and encouraging independent oversight were also used.
References
Bel, G., & Gradus, R. (2018). Privatization, contracting-out and inter-municipal cooperation: new developments in local public service delivery. Local Government Studies, 44 (1), 11-21.
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Cohen, S., & Eimicke, W. (2008). The responsible contract manager: Protecting the public interest in an outsourced world. Georgetown University Press.
Cooper, P. J., & Cooper, P. (2002). Governing by contract: Challenges and opportunities for public managers. CQ Press.
Peeters, R. (2013). The impact of timing on bidding behavior in procurement auctions of contracts with private costs. Review of Industrial Organization, 42 (3), 321-343.
Van Weele, A. (2014). International contracting: Contract management in complex health projects. World Scientific.
