Organisation: The Government Outcomes Lab
At SOC23, we examined the potential for formal relational contracting to support more effective contracting when the public sector seeks to source complex services from private providers. In this SOC24 session, we instead focused on the role of the public sector in formal relational contracts, examining (1) the particular challenges posed by the involvement of a public actor in the contract (e.g. public accountability, political pressure etc.) and (2) the public sector capabilities needed to overcome these challenges.
Session 2.6 focused on the role of the public sector in formal relational contracts, examining (1) the particular challenges posed by the involvement of a public actor in the contract, and (2) the public sector capabilities needed to overcome these challenges. The session highlighted that relational contracting is necessary as it addresses the limitations of traditional contracting by fostering long-term partnerships and adaptive problem-solving. Training for public procurement officers is crucial to develop relational contracting skills, and we must move to a collaborative mindset. Justine Le Floch, IAE Paris Sorbonne, identified failures in contract management and oversight in the French water sector, underscoring the need for greater transparency, proactive management, and stakeholder engagement. Jonathan Ng, USAID, stated that relational grant making – a form of relational contracting – is beneficial because grants are inherently relational as they support shared goals.