Office Should Review Contracts
Rather than jump to conclusions about the pay-to-play allegations, I will say at this point that North Carolina clearly needs a formal privatization office.
North Carolina state and local agencies already contract out or partner with private entities to perform many tasks. In fact, they couldn’t function without private vendors.
Fairly early in the deliberations, expect some opportunistic politician or interest group to play the xenophobia card.
Private-ambulance official Marc Pickard is clearly frustrated as he explains why a Lenoir County man who suffered a stroke last week did not receive faster medical attention. Even though Pickard's company, Convalescent Transport, sits across the street from the stroke victim’s house, county law prevented its ambulance from responding. Instead, the man had to wait for a county ambulance. This Monday he died. Now Pickard worries that Hurricane Isabel could further expose Lenoir County’s faltering EMS system to pressure — while allowing his private firm to provide emergency service would help.
RALEIGH — The biennial state budget signed June 30 by Gov. Mike Easley provided for the construction of three prisons in North Carolina. In addition, the General Assembly authorized the state to purchase what once was its only two significant private prisons from Correctional Properties Trust, the company that owns them. The budget provisions signaled that the state plans to get out of privatization and that it will operate prisons itself for the foreseeable future. Privatization has worked for hundreds of other governments at the local, state, and federal level, but North Carolina’s first experience soured state officials on the idea.
Michael Lowrey writes about the privatization of EMS services in North Carolina.
A new study by the Pope Center for Higher Education Policy finds that the UNC system uses criteria that inhibit its ability to contract out various services. These criteria, known as "outsourcing criteria/guidelines," apply to all UNC-system schools and were recently part of the Outsourcing Steering Committee's decision not to privatize residential housekeeping services at UNC-Chapel Hill. These criteria also guided the university's decision not to privatize various other services at UNC-CH, including heating, ventilating and air conditioning, ground maintenance and vehicle maintenance.
According to a report by Roesel, Kent and Associates of Marietta, Ga., privatization of residence hall housekeeping at UNC-CH would not save money and would, infact, cost the university an additional $59,620. To arrive at that figure, RKA & Associates compared in-house and contracting out cost over a five year period.
The report on privatization of housekeeping services at UNC-Chapel Hill, which was performed by Roesel, Kent & Associates in Atlanta, Ga., prompted few questions from the Outsourcing Steering Committe when it was presented on April 12, despite several problems with the report.