Having a variety of providers to contract with allows the state to get the best price for each service. Just because something is privatized does not mean you have all the flexibility in the world. McDonnell's experience with reviewing and monitoring contracts has shown that cost savings through privatization takes some work. When contracting is done right and there is a wide enough market to solicit pricing, cost savings and efficiency can be achieved. The trick is to look at the market and what you're doing now and figure out the areas that will reap tremendous benefits for the public.
Contracting is now the department's preferred way to do business.
A recent janitorial services contract represents one success in privatization. The Department of Public Health and Environment gradually reduced in-house staff and transferred the jantorial services to two organizations. The department retained in-house employees and provided them with training for new positions. The Public Health and Environment Department also teamed with the Human Services Department to lease computers. Both agencies shared expenses while keeping in-house maintenance and support staff at a minimum.