Sullivan, Harold J. 1987. This article reviews the judicial decisions concerning the scope and applicability of national constitutional protections on privatization. It also examines and identifies a number of arrangements between government and private service providers that immunize both the government and private entities from constitutional restraints. Contracting Out Issues surrounding contracting out include the cost of information and monitoring and the need to create a level playing field for competitive bidding between public workers and the private sector. Contracting out is limited by legal rights to exclusive work by unionized labor.
Cost reduction is generally greater when contracts are competitively bid.
Some articles identify evaluative standards for contract privatization. Donovan, Ronald, and Marsha J. Orr. 1982. The New York State Experience . The authors examine subcontracting out transportation services in school districts in New York State. They propose a list of standards to judge when subcontracting should be subject to negotiation and arbitration.