Contracting discourages waste because prodigality cuts into profits. Contracting counteracts the motivation of budget-based government agencies to continually grow in size and to maximize their budgets. Contracting, through more effective personnel management, better working conditions, and less overcrowding, may increase employee morale and productivity while lowering absenteeism and turnover. Contracting motivates both governmental and private prisons to compete on quality as well as cost. Contracting, by creating an alternative, raises standards for the government as well as for private vendors.
Contracting adds new expertise and specialized skills.
Quantity a. Contractors can help alleviate today's capacity crisis by building new prisons faster than the government can. Contracting helps limit the size of government. Flexibility a. Contracting allows greater flexibility, which promotes innovation, experimentation, and other changes in programs, including expansion, contraction, and termination. Contracting reduces some of the political pressures that interfere with good management. Contracting relieves public administrators of daily hassles, allowing them to plan, set policy, and supervise.