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Perceptions Of The Contract-For-Service Relationship: The Impact Of Trust, Abby M. Foreman, Matthew R. Fairholm

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This paper discusses contract-for-services, the dominant mechanism of social service delivery in the United States. The development of the use of contract-for-services mechanism in social service delivery in the 20th century is outlined as well as the increasingly interdependent relationship that exists between nonprofit social service organizations and the government. The contracting relationship itself is one that is inherently insecure, which is assumed to create competition and create an incentive for high performance. Evidence, however, indicates that competition is often less than vigorous in social service contracting. In addition, there is a growing consensus that trust is a central component …