Government Contracts and “Managing the Market”

Abstract

Theory tells us that competition is the chief driver of improved efficiency and effectiveness in government contracting, yet contract provider markets are often noncompetitive. This study offers a detailed, contextualized examination of public administrative responses to thin contract markets. Following an inductive approach with data from semistructured interviews with contract administrators, the authors offer a preliminary typology of the conditions that give rise to thin markets, and the “market management” strategies used to create, enhance, and sustain competition in the markets from where governments purchase goods and services. The authors then review the efficacy and implications of these strategies for public services to citizens.