Public
/ Private Partnerships
First
there was collaboration, next there will be annexation.
Successful contractors will leverage partnerships with
Government agencies to contribute to the performance of work.
Community-based organizations may increasingly be
subcontractors to Government entities that will be performing
the work in-house. Vendors may share facilities or equipment
with the Government, or absorb the Government's workforce to
implement projects. Also known as "network management" or
"mixed market / public delivery framework," expect to see more
rationale for this approach through
2012. |
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Here's an interesting
undercurrent to the current deluge in Government
spending: It may be that the stimulus spending  is creating more opportunities for
Government than for the private sector.
The
Federal budget and budget priorities - in green sector
employment; energy; education; and health services - are
functions largely performed by the Government. Although
health care is currently an exception in that list,
under Universal Health Care it would advance to the head
of the list, at least in terms of money
expended. |
Demand
Creates Jobs
As the US
Bureau for Labor Statistics (BLS) reports, "Demand for
various goods and services is largely  responsible for employment in the
industries providing them." Right now, Government
is creating the demand - and the jobs. For example, BLS
projects that the education and health services sectors
will grow by 18.8% through 2016, and add more jobs --
nearly 5.5 million -- than any other industry super
sector. More than 3 out of every 10 new jobs created in
the U.S. economy will be in either the healthcare and
social assistance or public and private educational
services
sectors. |
But Are Those
Contractor Jobs?
As reported on www.CNSNews.com in March,
2009, experts have suggested that to accomplish the
goals articulated in the budget, hundreds of thousands
of workers will need to be added to the Government's
payroll. Independent estimates set the number of new
workers needed at 100,000, while the conservative
Heritage Foundation said the number could be as high as
450,000.
Any jobs created by the
private sector by the stimulus, in contrast, will lose
funding by
2011. |
Trends Toward
"In-Sourcing"
Outsourcing is traditionally
justified by cost-savings and expertise: Private firms
can offer better services more  efficiently and cost-effectively
than Government. A review of current research does not
support this (Bel, 2008). Current studies of
privatization in water and waste - the two areas
most commonly outsourced from Government to the private
sector - find no evidence that privatization saves
money. To save money, researchers say, markets must be
competitive - and Government functions such as water and
waste are rarely competitive. Consolidation in the
private sector means that in the one area where you may
have real competition, in the bidding for the work,
there are now fewer firms and less competition.
Additionally, new thinking about water conservation and
waste recycling has put Government - not the private
sector - on the cutting edge, reducing the value
of using private
firms. |
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Contact
Us
For further information or a
free 10-minute consultation,
contact:
Judie
Eisenberg
President
Proposal Pro,
Inc.
914-633-3352
info@proposalpro.com
Send Story Suggestions,
Questions or Comments
to info@proposalpro.com
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