Public vs. Private Services

Procurement Policies Related to Privatization

Background:
A variety of bills have been introduced over the years that would make it extremely difficult for the private sector to provide services to state government. The bills typically require unfair comparisons between the cost of private sector services and services provided by state employees. Other bills that have been introduced would create onerous reporting requirements that would discourage firms from pursuing state work. The bills discount the value of private sector services and fail to recognize the economic benefit they bring to the state.

ACEC/MN Position:
Private sector consulting engineering firms are highly competitive and efficient. They provide great value and quality services to not only the state, but a host of other clients as well. The state can greatly benefit from the efficiency and expertise that consulting engineering firms cang bring. Price comparisons between consulting engineering firms and state employees do not reflect the “true” cost of state employee services and should not be used.

Consulting engineering firms offer a valuable service by providing special expertise for projects where the state cannot develop or maintain the expertise needed. They are available to provide services when the level of of work goes beyond the State's ability to respond to project needs in a timely manner. The state taxpayer benefits from the savings that are realized when the State utilizes consulting engineering firms for design, planning and related professional services. Utilization of consulting engineering firms is the responsible approach to delivering public improvements with the citizen's funds. Using the service our firms provided will also help the economic stimulus that the State and nation need now.