Privatization in Higher Education: Contracting for Services at Public Colleges and Universities

Abstract

During the Reagan presidency, a wide variety of privatization alternatives were examined. Among these was contracting for services, an alternative already in use for many years at the state and local level. Contracting for services has also been used by colleges and universities throughout this country, and remains a major focus for facilities managers at these institutions. Survey data from colleges and universities through this country were examined to determine if: 1) the amount of contracting varied by institution size; 2) the amount of contracting varied by region of the country; and 3) the amount of contracting varied with the relative degree of unionization. The results of the analysis indicate that 1) large institutions contract to a lesser extent than do small and medium institutions; 2) the extent of contracting does vary by region, with the Midwest region contracting to a greater extent than the Southwestern, Central, Rocky Mountain and Pacific Coast regions; 3) the differences in the extent of contracting for services between institutions with non-union, mixed, or union workforces was not statistically significant.