Voluntary Agencies and the Contract Culture: "Dream or Nightmare?"

This analysis of recent research on purchase of service contracting (POSC) is prompted by the emergence of POSC as the primary method for the delivery of the personal social services in the United States. The publication of five books on contracting since 1987 and other empirical studies provide a basis for examining what has been learned about POSC. After a discussion of the policy context of the contract state and the three major research paradigms, four topics are considered: (1) rationale and incentives for POSC; (2) processes, transaction costs, and strategies; (3) consequences for the service delivery system and for the governmental and voluntary nonprofit organizations involved; and (4) implications for policy, management, and future research.