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How is competitive contracting or managed competition different from contracting out?

April 26, 2017competition competitive contracting different managed

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How is competitive contracting or managed competition different from contracting out?

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Under managed competition, the state departments/employees and private firms compete to determine who is the most economic and efficient service provider. With contracting out (also called outsourcing and/or privatization), only private entities are allowed to compete by submitting a proposal or bid.