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Complex products and comprehensive service agreements: A case study of outsourcing in contract cities

Complex products and comprehensive service agreements: A case study of outsourcing in contract... <jats:p>This study investigates how outsourcing multiple public functions in a single contract increases the complexity of the services rendered under the agreement. We hypothesize that product complexity arises in these bundled service agreements due to several factors including diseconomies of scope, the 'lock-in' problem, and communications problems between the contractor, the government and the public. We investigate these questions using a textual analysis research methodology to examine the initial contract documents that formalized an agreement between the City of Sandy Springs Georgia and the firm CH2M Hill. The results of this qualitative study identified several ways that different combinations of functions increased product complexity. It also revealed ways the contracts were designed to mitigate the risks of outsourcing multiple functions in a single contract.</jats:p> http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Public Procurement CrossRef

Complex products and comprehensive service agreements: A case study of outsourcing in contract cities

Journal of Public Procurement , Volume 15 (2): 150-176 – Mar 1, 2015

Complex products and comprehensive service agreements: A case study of outsourcing in contract cities


Abstract

<jats:p>This study investigates how outsourcing multiple public functions in a single contract increases the complexity of the services rendered under the agreement. We hypothesize that product complexity arises in these bundled service agreements due to several factors including diseconomies of scope, the 'lock-in' problem, and communications problems between the contractor, the government and the public. We investigate these questions using a textual analysis research methodology to examine the initial contract documents that formalized an agreement between the City of Sandy Springs Georgia and the firm CH2M Hill. The results of this qualitative study identified several ways that different combinations of functions increased product complexity. It also revealed ways the contracts were designed to mitigate the risks of outsourcing multiple functions in a single contract.</jats:p>

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Publisher
CrossRef
ISSN
1535-0118
DOI
10.1108/jopp-15-02-2015-b002
Publisher site
See Article on Publisher Site

Abstract

<jats:p>This study investigates how outsourcing multiple public functions in a single contract increases the complexity of the services rendered under the agreement. We hypothesize that product complexity arises in these bundled service agreements due to several factors including diseconomies of scope, the 'lock-in' problem, and communications problems between the contractor, the government and the public. We investigate these questions using a textual analysis research methodology to examine the initial contract documents that formalized an agreement between the City of Sandy Springs Georgia and the firm CH2M Hill. The results of this qualitative study identified several ways that different combinations of functions increased product complexity. It also revealed ways the contracts were designed to mitigate the risks of outsourcing multiple functions in a single contract.</jats:p>

Journal

Journal of Public ProcurementCrossRef

Published: Mar 1, 2015

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