FROM: Economic Diversification Committee, Governor’s Council of Economic Advisers
TO: Governor Ralph DLG Torres and Chairman Jerry Tan
SUBJECT: A pathway toward expanded Public Private Initiatives for the Commonwealth
The Council, in considering the diminished state of CNMI government resources caused by the COVID-19 pandemic, offers a proposed pathway for the expansion of private sector resources in the delivery of essential public services.
The concept of utilizing private sector contracts in the pursuit of privatizing public sector initiatives and the advancement of public services is a commonly used throughout communities in the United States and is seen to be an available and worthwhile tool in maintaining public goods at a reduced expense to the Commonwealth government. In this effort, the Council puts forward a 12-step methodology toward privatization which is as follows:
Consider the idea of contracting out.
Select the service
Conduct a feasibility study
Foster competition
Request expression of interest or qualifications
Plan the employee transition
Prepare bid specifications
Initiate a public relations campaign
Engage in “managed competition”
Conduct a fair bidding process
Evaluate the bids and award a contract
Monitor, evaluate, and enforce contract performance
Concurred by the Members of the Economic Diversification Committee
Governor’s Council of Economic Advisers
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