How Competitive Is “Competitive” Procurement in the Social Services?

Abstract

The scholarship on contracting generally argues that markets for social services are weak and lacking in competition. Using data gathered from Florida’s largest social service agency, the Department of Children and Families, this article adds to the discussion by constructing a more rigorous measure of competition that accounts for the quality of bidding entities. The findings indicate that while the measures used in earlier studies align reasonably well with the raw number of initial responders to competitive solicitations, they tend to overestimate competition when the quality component is included in the analysis. That is, social service markets may be even weaker than previously reported. Furthermore, an examination of the relationship between competition and performance fails to find a significant association.