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Recommendation 9: Expanded Public Private Initiatives

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:

  1. Consider the idea of contracting out.

  2. Select the service

  3. Conduct a feasibility study

  4. Foster competition

  5. Request expression of interest or qualifications

  6. Plan the employee transition

  7. Prepare bid specifications

  8. Initiate a public relations campaign

  9. Engage in “managed competition”

  10. Conduct a fair bidding process

  11. Evaluate the bids and award a contract

  12. 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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