A quantitative evaluation methodology for the sourcing of public sector job functions

Abstract

Public agencies contract out job functions with the objective of utilizing their resources more efficiently. Some major reasons for an organization to contract out services with private sector firms have been, ³to supplement in-house staffing, especially for peak work loads, ³to obtain the use of specialized equipment, a to obtain the services of specialized personnel, a to obtain the services at a lower cost, ³to meet executive policies, ³to perform emergency work, 0 and to improve responsiveness (1) The focus of this thesis was to the development of a general evaluation methodology (or framework) to be used by public entities for evaluation of the sourcing of specific job functions. The methodology was developed to be a proactive decision support tool by providing an organized method by which to compile and statistically analyze the opinions of managers directly impacted by the sourcing decision. The researcher selected a sample of transportation agency employees for participation in a sourcing study developed from the use of the methodology. The candidate job function that was evaluated was construction engineering inspection (CEI) services. A survey was created that gathered the opinion of the sample population to the viability for outsourcing the candidate job function across a variety of qualitative issues, and the importance each issue had in the sourcing decision. Statistical comparisons were made between the opinions of different agencies and the level of management to the considered CEI services a bad candidate for outsourcing. The Florida Department of Transportation considered CEI services a good candidate for outsourcing. The level of management responding to the survey did not have a significant impact on the sourcing decision.