The separation/Specification Dilemma in Contracting: The Local Government Experience in Victoria

Date

2008

Authors

O'Flynn, Janine
Alford, John Lyle

Journal Title

Journal ISSN

Volume Title

Publisher

Blackwell Publishing Ltd

Abstract

This article draws on evidence from case studies of local government contracting in the Australian state of Victoria. It argues that one of the key elements of competitive tendering - the separation of purchasers from providers - undermines another of its essential mechanisms - the specification of services - at the point where previously in-house services are exposed to competition. The managers who are to become purchasers lack the requisite knowledge of services, which instead resides in the minds of the service delivery staff whose work is to be subjected to competitive processes. Separating purchasing from service-provision 'distances' the staff from the managers, impairing employees' willingness to share the relevant information. At the same time, the introduction of competition increases the probability that staff will withhold that knowledge, and makes it harder on probity grounds to maintain the type of collaborative relationship which might overcome their reluctance to share it.

Description

Keywords

Keywords: competitiveness; knowledge; local government; probability; Australasia; Australia; Victoria [Australia]

Citation

Source

Public Administration

Type

Journal article

Book Title

Entity type

Access Statement

License Rights

Restricted until

2037-12-31