Garbage Collection Services Costs

: According to Donahue's survey of garbage collection cost studies, researchers have found that "contractors are cheapest, followed by public agencies, then open competition." What factors best explain this result?

The best explanation provided by Donahue for the finding that contractors are cheapest was that, while public agencies may be characterized by factors that cause them to be higher cost service deliverers, they also possess the knowledge of garbage collection requirements and workings of the industry, together with the necessary negotiating skills, that enable them to obtain service contracts that are lower cost than those that could be obtained by the typical individual, household, or business firm negotiating for such services.

Another factor that is likely involved is the collective character of negotiations conducted by representatives of public agencies. The reasoning behind this contention is the same that underlies collective bargaining by labor unions. Skilled negotiators representing a large groups of individuals obtain results superior to those that would likely be obtained by each individual member of a labor union action on her or his own.

Donahue provides a number of reasons why garbage collection services provided by a public agency may be more expensive than those provided by contractors. Among the more significant of these reasons is that public agencies pay higher wages than do contractors, particularly over the longterm. The implication

Related Essays

Privitizing City & County Government Services .... of the sanitation-collection services, historically a .... or considered "outsourcing" sanitation services turns on .... opting for privatization of garbage services. .... (5818 23 )

Economic impact of disasters .... and interruption of basic utilities and services such as garbage collection and sewage .... as deadly storm will affect real estate, trade, heating costs. .... (1184 5 )

THE ECONOMICS OF RECYCLING The Economics of Recycling .... were the best solution to the garbage crisis in .... users of solid waste disposal services paying a .... landfill proponents believe that recyclables collection is too .... (3137 13 )

THE ECONOMICS OF RECYCLING This paper will addre .... were the best solution to the garbage crisis in .... users of solid waste disposal services paying a .... landfill proponents believe that recyclables collection is too .... (3102 12 )

THE ECONOMICS OF RECYCLING This paper will addre .... were the best solution to the garbage crisis in .... users of solid waste disposal services paying a .... landfill proponents believe that recyclables collection is too .... (3099 12 )

mance and constant costs. Major reasons for this lack of acceptance lies in a skepticism found in many industries that the learning curve can be quantified for their industries; a skepticism that any early improvement in costs can be sustained; a skepticism that the learning curve concept is really applicable to all production processes; and a lack of recognition that the learning curve concept is applicable to group performance, as well as to individual performance. Donahue also points out that public agencies providing garbage collection services (and many other services for that matter) may have mandates other than collecting garbage. As an example, they may be expected to provide steady jobs to individuals who might now be able to secure such employment in the private sector. In this context, public agencies become an adjunct of the public welfare system. Further, in this context, it become unreasonable to evaluate their economic efficiency in comparison to contractors who are charged with no such mandate. Rather, the evaluation of their economic efficiency should consider also the costs of providing for the marginally employable through other alternatives.Requirement two: "To ask whether bureaucrats or private contrac

Category: Business - G