The Chicago Tribune (4/29, Channick) reported that, "overwhelmed by the depth and breadth of potholes, the Illinois Department of Transportation is turning to outside contractors to help with repairs."
IDOT has the capacity to dispatch 60 patching crews a day, but it has been receiving up to 500 pothole complaints a day "during a long winter of brutal freeze-thaw cycles and near-record snow." Unable to keep up, officials took the unusual step of bidding out eight contracts for Cook and five collar counties this month, with about $25.5 million to be spent on contracts for the work.
I am currently working on some projects to model governmental outsourcing. This case is unique in two ways. First, it is the state that contracts with local governments to provide a service, due to state's diseconomies rather than economies of scale. Second, the purpose is to improve responsiveness rather than to save money. Essentially it resembles a case of devolution in market style.
IDOT has the capacity to dispatch 60 patching crews a day, but it has been receiving up to 500 pothole complaints a day "during a long winter of brutal freeze-thaw cycles and near-record snow." Unable to keep up, officials took the unusual step of bidding out eight contracts for Cook and five collar counties this month, with about $25.5 million to be spent on contracts for the work.
I am currently working on some projects to model governmental outsourcing. This case is unique in two ways. First, it is the state that contracts with local governments to provide a service, due to state's diseconomies rather than economies of scale. Second, the purpose is to improve responsiveness rather than to save money. Essentially it resembles a case of devolution in market style.
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