Philosophical arguments about government contracting either categorically oppose it on legitimacy grounds or see it as largely anodyne. I argue for a normatively distinct kind of contracting – the advance market commitment, or AMC – and show that it is justified by the same liberal values that justify the welfare state.

When governments acquire third-party social welfare services (SWS), they create institutions of acquisition. The rules and practices that governments adopt define who is able to participate, on what basis, and how prices are determined. This paper conceptualizes the institutions of SWS acquisition, their variations, and implications, in order to contribute to a deeper understanding of the link between contracting and nonprofit commercialisation. Institutions of SWS acquisition include rules of entry, participation, and assessment. Resulting acquisition regimes can be marketised to a greater or lesser extent, and this is influential through its effect on nonprofit competition. Drawing on interviews with public servants and nonprofit staff, the paper compares acquisition regimes for homelessness services in England, a regime that closely resembles a market, and Canada, a regime which is not marketised. In contrast to their non-marketised counterparts, this paper finds that marketised SWS acquisition regimes create incentives for participants to reduce prices by loss-leading or ratcheting down service quality.

Contracting of social services has been adopted in China as an innovation in welfare provision. This article reviews the emerging literature on contracting of services to social organisations in China in order to identify lines of further enquiry. It reviews research published in the English and Chinese languages up to 2018. We identify three distinct narratives: public sector reform, improvement of welfare service quality and capacity, and transformation of state-society relations. We contrast the identified narratives with the empirical evidence produced for the Chinese case. We demonstrate that, despite contradictory empirical evidence, the premise that contracting improves public sector efficiency and quality of services predominates. The narrative that contracting transforms state-society relations is contested. This article contributes to the understanding of how contracting of services is justified in theory and practice, and proposes an agenda for future social policy research on contracting of services to social organisations in China.

Williamson's legacy will be permanently, and deservedly, linked with the theory of the firm. As important, however, is his contribution to our understanding of contracting. My aim here is to describe Williamson's conception of contracting, how it differs from other approaches to contracting, and some implications of that approach for contract design and enforcement. I argue that Williamson's ‘process orientation’ – in which the main dimension along which contracts vary is the extent to which contract adjustments are effected through court ordering versus private ordering – provides alternative interpretations of some conventional contract terms but also sheds light on some otherwise puzzling contractual phenomena.

Home care for older people in England is commissioned through local authorities working predominantly with independent providers of care. Commissioners operate in a market model, planning and procuring home care services for local populations. Their role involves ‘managing’ and ‘shaping’ the market to ensure an adequate supply of care providers. Another imperative, emerging from the principles of personalisation, is the drive to achieve user outcomes rather than ‘time and task’ objectives. Little formal research has investigated the way commissioners reconcile these different requirements and organise commissioning. This study investigated commissioning approaches using qualitative telephone interviews with ten commissioners from different local authorities in England. The characteristics of commissioning were analysed thematically. Findings indicated (a) commissioning involved complex systems and processes, uniquely shaped for the local context, but frequently changed, suggesting a constant need for reframing commissioning arrangements; (b) partnerships with providers were mainly transactional, with occasional examples of collaborative models, that were considered to facilitate flexible services more appropriate for commissioning for personalised outcomes; and (c) only a small number of commissioners had attempted to reconcile the competing and incompatible goals of tightly prescribed contracting and working collaboratively with providers. A better understanding of flexible contracting arrangements and the hallmarks of a trusting collaboration is required to move beyond the procedural elements of contracting and commissioning.

Value chain development (VCD) initiatives within the horticultural and organic sectors in Africa are promising strategies to improve smallholder welfare. Contracting institutional arrangements are a common feature of VCD initiatives and are increasing in number in sub-Saharan Africa as a way to source organic products from smallholder producers. The objective of this study is to better understand men and women's participation in spice producing households that sell under contract and in conventional market chains in the East Usambaras, Tanzania. We draw on New Institutional Economics, political economy and the value chain analysis framework to assess the potential role of contracting to promote gender equity among smallholder organic horticultural producers. We describe intra-household decision making over resources and marketing, access to benefits of contracting, and labor distribution between men and women in contracting and non-contracting households. We then extend the gender analysis to evaluate the role of gender in contracting and conventional value chains operating within the community and district. Using a cross-sectional research design and data collected through 13 focus group discussions, 54 personal interviews and 156 household questionnaires, we show that contracting reduces transaction costs in the chain compared with the conventional trade. However, norms in the wider political economic context give rise to gendered patterns of participation in both household and chain activities in contracting and non-contracting households. Our findings suggest that contracting does not provide significant opportunities for women in married households to participate and benefit based on limited participation in decision-making and access to trainings. Divorced women and widows gain access to contract employment opportunities to earn income. This study highlights the importance of understanding gender relations in the household and community to guide the development of gender equitable VCD initiatives and contracting approaches.

Is it possible to generate more efficient outcomes with respect to public procurement in general and defense acquisition in particular? Or are cost overruns inevitable when it comes to major engineering projects, like the development of modern weaponry? In this article, we draw on a unique data set of nearly 50 French armaments contracts in order to examine how one government has reformed its defense acquisition process over the past twenty years. Beginning in the early 1990s, France embarked on a series of policy reforms that enabled the state to contain skyrocketing weapons costs. We emphasize three, inter-related aspects of the defense acquisition environment in France that favored cost containment: first, hard budget constraints; second, the great technical capacity that the French government brought to bear on the weapons acquisition process, coupled with its iterative relationship with a small number of suppliers; and third, the use of contracting techniques that empowered project managers.

Using data from a survey of Pennsylvania food processors, we investigate what firm-level characteristics make a processor more or less likely to buy agricultural inputs and ingredients though contracts. We find that over 20 percent of Pennsylvania processors use contracts, and over 44 percent of agricultural inputs (based on value) are purchased under contract. We also analyze the two related questions of what firm attributes, attitudes, or other factors make a firm more likely to use contracts at all, and what factors lead a processor who does contract to use them more intensively.

The authors present an analytical model of a first-price sealed-bid cattle auction in which a spot and coordinated markets are interconnected. The model reveals that the conventional wisdom that market coordination negatively affects the bid price in the spot market is an oversimplification. The relationships between key market variables impact bids and bid shading in complex ways. While captive supplies can lead to lower spot prices, the price reductions do not necessarily stem from an increase in market power due to contracting. The model emphasizes the importance of several variables for future empirical studies.

The extent of forage purchasing behavior in milk production and its impact on profitability are analyzed using data from the 2000 and 2005 dairy versions of the Agricultural Resource Management Survey. Forage outsourcing is more common with hay than with silage and haylage, and is more prevalent in the western United States. Though silage and haylage outsourcing is found to impact profitability, the major profitability drivers appear to be farm size and efficiency. Evidence of significant forage contracting is found in the western United States.

From production to retail, information systems have become increasingly important in the agrifood system. Retailers use information systems to improve inventory management and increase efficiency in production and logistics. Innovations in agribiotechnology and food safety issues highlighted by incidences related to Starlink corn and “mad cow disease” have raised consumer concerns about their food products. In addition to food safety concerns, consumers are increasingly willing to pay premiums for nonobservable quality characteristics in their food products. This paper outlines a framework for evaluating the implications of traceability for the organization of the agricultural system and highlights potential organizational responses to traceability issues.

The introduction of vertical coordination in the hog industry has provided producers with new business arrangements for raising hogs. While some researchers have elicited utility functions for hog producers on the basis of income risk, none have addressed autonomy, a factor which appears to be important in business arrangement selection for independent family hog operations. In this study, a method is developed for eliciting a multi-attribute function with attributes of income and autonomy. Utility functions are elicited for a group of Minnesota farrow-to-finish hog producers. For these producers, autonomy dominated risk as the most important attribute in business arrangement selection.

Agriculture has seen a steady movement toward the increased use of contracts. Agricultural contracts now guide the interrelationships of parties throughout the modern production system, extending well beyond the livestock sector. With this predominance come new issues that require us to reexamine contract theory and the roles of the parties. This review examines legislation, regulations, and recent court rulings in seemingly unrelated areas that have specific relationships to the development of contracts in production agriculture: environmental law and labor law.

This paper examines the industrialization process of U.S. agriculture by examining the trends in the number of farms, the concentration of production during the last decade, and the dynamics of farm survivability, entry, and exit underlying aggregate statistics. We next examine vertical coordination as part of the industrialization process and highlight contracting in the poultry industry. The analysis provides evidence that production is continuing to be concentrated on a smaller number of farms at a relatively rapid rate, in spite of the stability in the number of farms. Although contracting clearly dominates the broiler industry, it is less prevalent in egg and turkey production, where other forms of vertical coordination are likely established.

Hog farmers' preferences for autonomy are assessed through the use of eight questions dealing with their preferences for general decision making and with respect to specific management actions. Farmers generally preferred to make a higher percentage of the decisions about their operations, especially older producers and those who operated farrowing units. Farmers who placed lower values on autonomy finished hogs, were nearing retirement, valued social relationships with other farmers more highly, had higher off-farm income, or were larger farmers.