When the public sector agency decides to privatize large government functions (as opposed to a more conservative work) contract negotiations for services is becoming more complex and far-reaching efforts. This study describes the dilemma that surfaced when the government agency in British Columbia, Ministry of Provincial Revenue, has signed a 10-year, $ 750 million contract for the non-tax revenue collection to EDS Canada, a subsidiary of Electronic Data Systems of Texas corporation. The attractiveness of the transaction, in terms of the public sector, was that she gave the risk modernization of outdated, limited resources of the private sector. Appeal to the private sector, allowing the company to recover costs and profit, taking the share of financial benefits as a result of the upgrade. But the talks the ins and outs of the contract for this ambitious project was to prove a formidable, almost insurmountable obstacle for the two organizations, which was inhabited by different cultures and, several assumptions, and pursued different mandates. For example, what was a reasonable level of profit? If the company has to disclose its costs for the government? The extent to which the contract details be public, if at all? In what areas, if any, shall be public officials in the state to regulate the practice of the firm? And as any of the parties will be responsible for its contractual promises? The case was developed for a course at the Kennedy School of public-private partnership. This gives students a balanced, inside look at the tiny dilemma, both public and private sector negotiations. HKS Case Number 1835.0 "Hide
by Pamela Varley, John D. Donahue Source: Harvard Kennedy School 30 pages. Publication Date: June 16, 2006. Prod. #: HKS147-PDF-ENG
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