Competition, Choice, and Incentives in

Since the 1980s, the language used around market-based government has muddied its meaning and polarized its proponents and critics, making the topic politicized and controversial. Competition, Choice, and Incentives in Government Programs hopes to reframe competing views of market-based government so it is seen not as an ideology but rather as a fact-based set of approaches for managing government services and programs more efficiently and effectively. Published in cooperation with IBM.

Part I: Overview

1

(34)

Creating a Market-Based Government Using Competition, Choice, and Incentives

3

(32)

John M. Kamensky

Albert Morales

Introduction

Understanding Market-Based Government

The Tools of Market-Based Government

Keys Issues Facing Policy Makers and Managers

Conclusions

Appendix: Details of the Tools of Market-Based Government

Endnotes

Part II: Market-Based Service Delivery

35

(282)

Moving Toward Market-Based Government: The Changing Role of Government as the Provider

37

(84)

Jacques S. Gansler

Overview

Understanding the Issue

Outsourcing

Competitive Sourcing

Privatization

Public-Private Partnerships

Government Entrepreneurship ('Franchising')

Contractors in Security Operations: A Special Case

Findings and Conclusions

Acknowledgments

Endnotes

Bibliography

International Experience Using Outsourcing, Public-Private Partnerships, and Vouchers

121

(40)

Jon R. Blondal

Introduction to Market-Type Mechanisms

Outsourcing

Public-Private Partnerships

Vouchers

Conclusion

Acknowledgments

Endnotes

Bibliography

Competitive Sourcing: What Happens to Federal Employees?

161

(40)

Jacques S. Gansler

William Lucyshyn

Introduction

Understanding Competitive Sourcing: Recent History

Analyzing DoD Competitive Sourcing: Reviewing 10 Years of Data

Providing `Soft-Landing' Programs for Separated Employees

Findings and Recommendations

Acknowledgments

Endnotes

Implementing Alternative Sourcing Strategies: Four Case Studies

201

(104)

Jacques S. Cansler

William Lucyshyn

Overview

Jacques S. Gansler

William Lucyshyn

John Barker

Case Study 1: Outsourcing---Outsourcing Desktop Initiative for NASA Results in Improved Service, Consistency, and Quality

William Lucyshyn

Robert Maly

Case Study 2: Competitive Sourcing---The IRS Improves Performance and Modernizes Operations

William Lucyshyn

Sandra Young

Case Study 3: Competitive Sourcing at Offutt Air Force Base---A Collaborative Public Sector Approach

John Barker

Russell Lundberg

Case Study 4: Public-Private Partnership---A Pilot `Virtual Prime Vendor' Contract to Supply C-130 Parts

William Lucyshyn

Jonathan Roberts

About the Contributors to Chapter Five

Market-Based Sourcing: Lessons Learned and Results Achieved

305

(12)

Jacques S. Gansler

William Lucyshyn

Introduction

Leadership for Market-Based Sourcing

Planning and Implementation of Market-Based Sourcing

Communication to Employees and Stakeholders

Sustaining a Competitive Environment

Appendix: Forum Participants

Part III: Market-Based Internal Government Services

317

(70)

Entrepreneurial Government: Bureaucrats as Businesspeople

319

(36)

Anne Laurent

Preface

Introduction

Entrepreneurs: Case Studies

The Challenge of Running Entrepreneurial Organizations

The Costs of Success

Lessons Learned

Acknowledgments

For Additional Information

Franchise Funds in the Federal Government: Ending the Monopoly in Service Provision

355

(32)

John J. Callahan

Introduction

Franchise Funds: Legislative Origins

Franchise Fund Pilots: An Overview

Franchise Funds: Two Case Studies

Franchise Funds: Criteria for Evaluation

Recommendations

Postscript

Endnotes

Bibliography

Part IV: Market-Based Regulation

387

(90)

Designing Competitive Bidding for Medicare

389

(60)

John Cawley

Andrew B. Whitford

Understanding Competitive Bidding

The CMS Experience in Moving from Fiat Pricing to Competitive Bidding

Constraints CMS Faces in Designing Competitive Bidding for Medicare Four Major Challenges to Competitive Bidding in the Health Arena and Their Possible Solutions

Acknowledgments

Endnotes

Bibliography

New Tools for Improving Government Regulation: An Assessment of Emissions Trading and Other Market-Based Regulatory Tools

449

(28)

Gary C. Bryner

Introduction

Study Findings

Conclusions and Recommendations

Postscript

Appendix: State Emissions Trading Programs

Endnotes

About the Contributors

477

(6)

About the IBM Center for The Business of Government

483

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Competition, Choice, and Incentives in Government Programs

Summary

Table of Contents

Supplemental Materials