Wendell C. Lawther

The Role of Public Employees in the Privatization Process

Once a government has made the decision to privatize a service that it is already providing, various considerations need to be given to the public employees who will be affected by this decision These considerations include personnel issues such as selection and termination, wages, benefits, and job security The reference made to them m the Request for Proposal (RFP) significantly impacts the amount of cost savings and the quality of service delivery that are likely to accompany privatization In addition, the ease or difficulty of transitioning these employees to private sector employment is also affected As an illustration, the efforts of the Orlando Orange County Expressway Authority to privatize toll operations in Central Florida are discussed

Availability Payments and Key Performance Indicators: Challenges for Effective Implementation of Performance Management Systems in Transportation Public-Private Partnerships

Recent economic problems have led to a potential increase in the adoption of an availability payments approach by U.S. transportation agencies when creating public-private partnerships (P3s). In doing so, the public sector assumes 100% of the demand risk, relying much more heavily on performance management systems that contain key performance indicators (KPIs) to ensure optimal private partner performance during operations and maintenance. Many existing performance management systems, however, suffer from a lack of alignment among KPIs chosen to ensure that all P3s meet societal or agency goals as well as project goals. Furthermore, the choice of KPIs and accompanying standards has resulted in standards that are too easily met or inappropriately weighed. Examples are provided from P3 contracts for projects in Australia and Canada.

Privatization and Public Employee Pension Rights Treading in Unexplored Territory

What rights do public employees have to the same level of pension benefits when their positions are privatized? The literature on privatization does not deal with its impact on public employee pensions In 1997 the United States Supreme Court, in the Inter-Modal case, ruled that a private company cannot contract with another private company for the purposes of lowering the benefit costs of their employees Since there is no public counterpart to ERISA, however, the courts have had to look to state constitutions and state and local law to resolve the question of pension rights The courts have relied upon contract law to handle disputes over this issue While it appears that in some states Privatized employees do have a right to the same level of benefits as public employees, in other states the answer is not as clear Issues which make the answer complex include (a) the definition of vesting and, (b) the comparability of defined benefit and defined contribution pension plans For the wary government official, several suggestions are made to avoid potential legal difficulties

The Role of Public Employees in the Privatization Process Personnel and Transition Issues

Once a government has made the decision to privatize a service that it is already providing, various considerations need to be given to the public employees who will be affected by this decision These considerations include personnel issues such as selection and termination, wages, benefits, and job security The reference made to them m the Request for Proposal (RFP) significantly impacts the amount of cost savings and the quality of service delivery that are likely to accompany privatization In addition, the ease or difficulty of transitioning these employees to private sector employment is also affected As an illustration, the efforts of the Orlando Orange County Expressway Authority to privatize toll operations in Central Florida are discussed

Public–Private Partnerships in Transportation Policy: The Case of Advanced Traveler Information Systems

Abstract Increasing roadway usage has made achieving public transportation goals more challenging. Federal legislation has recognized that advanced technology, creating systems deployed by public-private partnerships (PPPs), can help meet these goals. Advanced Traveler Information Systems (ATIS) represent efforts to provide travelers with information about real-time traffic conditions so that they can make informed decisions about travel plans. Five model ATIS PPPs found in varying US metropolitan areas are proposed, each reflecting different roles and responsibilities of public and private partners. Actual experience is assessed, noting that ATIS PPPs often must evolve from one model to another to maximize effectiveness.

Implications of Salary Structure and Merit Pay in the Fifty American States

The burgeoning literature concerning merit pay in the public sector primarily focuses on themes such as its ability to improve performance, implementation problems in merit pay system maintenance, and a much more limited review of how merit pay should be integrated with salary structure. There are no studies of merit pay and salary structure, however, that compare experiences across local, state and federal government. Compensation specialists from all 50 states were surveyed to determine current practices in the area of pay structure and merit pay systems. Results indicate that many states are having difficulty in effectively integrating structure and merit pay.

Ethical Challenges in Privatizing Government Services

The great flexibility and innovation that characterize the latest public management practices pose new and different values conflicts for responsible administrators who wish to sustain an ethical work environment. The trend toward privatization of government services requires that responsible administrators adopt policies that were not needed in the past. Fairness takes on a different form when public employees have to be encouraged and aided in competing against private or nonprofit contractors. The potential for cozy politics requires the adoption of innovative procurement policies. Most significant, the investment in contract administration necessitated by a commitment to quality service often entails unanticipated costs and effort.

PUBLIC OUTREACH FOR PUBLIC-PRIVATE PARTNERSHIPS: THE CASE OF ADVANCED TRAVELER INFORMATION SYSTEMS

The deployment of Advanced Traveler Information Systems (ATIS) occurred in most metropolitan areas in the United States through the creation of a publicprivate partnership (PPP). An ATIS PPP involves a high level of risk that travelers may be unaware of the ATIS. Because ATIS offers innovative service, sufficient public outreach/marketing efforts must increase usage and limit this inherent risk. For transportation officials, the need for greater public awareness means a changing role. ATIS business plans, those documents that establish policy goals and provide a framework for the PPP, have not focused on marketing ATIS services. Experiences with public outreach efforts, illustrated by three metropolitan ATIS PPP examples, suggest that such efforts have not led to satisfactory levels of usage. The adoption of the 511 telephone number for traveler information, a decision made by the Federal Communications Commission in July 2000, has increased recognition of the need for public outreach.

FLEXIBLE PROCUREMENT APPROACHES THAT FACILITATE RELATIONSHIP CHANGE AND NEGOTIATION: THE USE OF THE INVITATION TO NEGOTIATE

The effectiveness of innovative procurement practices, illustrated at the US federal level by Performance Based Service Contracting and other best value approaches, depends upon changes in the public procurement organizational culture. These changes require agency officials to establish new relationships with contractors, as the challenges of acquiring complex as well as highly customized goods/services is best met through flexibility and negotiation throughout the life of the acquisition. Using procurement approaches that provide maximum flexibility provide challenges to public managers, as choices regarding negotiation include the content as well as the intensity and duration of negotiation sessions. The use of the Invitation to Negotiate (ITN) approach by the State of Florida is one example of an approach that allows flexibility and facilitates different relationships with contractors. Two case studies, from the Departments of Transportation and Management Services illustrate the use of ITN.

Compensation Control Mechanisms in the American States

There are few studies which report on the personnel practices in the American states. A survey of state compensation analysts in the Summer of 1987 elicited information concerning the use of compensation controls in state government. Results indicate that with the exception of wage and salary surveys, data concerning compensation controls is rarely collected. Initial analysis indicates that the role of the legislature and the existence of collective bargaining may have an impact on the number of controls used.