By contrast, most government services are monopolies, which may lead to inflated prices and poor service quality due to lack of competitive pressure. The competitive enterprise system, characterized by individual freedom and initiative, is the primary source of national economic strength. In recognition of this principle, it has been and continues to be the general policy of the Government to rely on commercial sources to supply the products and services the Government needs. The A-76 Circular supports the idea that government should focus on performing its core functions and rely on the private sector to perform services that are outside of those core functions if they can do so with improved quality and lower cost. By engaging government employees in the process of competing with the private sector, taxpayers can be assured that, one way or another, the goods or services they receive are delivered as efficiently and effectively as possible.
Government is under increasing pressure to reduce costs.
At the same time, citizens expect the services provided by government to improve. As a result, generally-accepted best practices have emerged through trial and error. The e-Texas staff has evaluated existing methodologies and identified effective practices that exist in various approaches to enable the Comptroller to develop a managed competition process suitable for use in other Texas agencies and local subdivisions of the state. Managed competitions should be designed to facilitate an accurate and fair comparison between public and private providers of similar functions and services to determine the best course of action to maintain or enhance mission capability and effectiveness at reduced cost. Any function that is commercially available by multiple vendors is a potential candidate for competition.