Most privatization plans are carried out without adequate cost comparisons to determine if the plan will actually save taxpayers money. Often, correct procurement practices are not followed and contractors operate without proper oversight. These failures open the privatization process to fraud and abuse. The District's Inspector General's Office found that ServiceMaster had overbilled and doubled billed the city. Most privatization plans make it hard for governments to oversee and ensure the quality of the services provided by contractors.
Privatization hurts workers' ability to negotiate wages and working conditions.
Private contractors usually pay less than government agencies and provide fewer benefits. This reduces family income and undermines the community's tax base by reducing working families' spending power. The need for improvements in public services doesn't disappear when private contractors take over. In a detailed review of the ServiceMaster contract with the D.C. Public Schools, the study showed . . . The contract did not help to reduce school system overhead or administrative costs.