An analysis of purchasing services via competitive bid

Ohio's community mental health system is structured much like other states', with local government boards that contract for community mental health services. Community mental health boards are the local planning, funding, and evaluating bodies that are prohibited, except under special circumstances, from directly operating mental health services. The services are delivered by human service agencies--mostly private, not-for-profit corporations. Obviously, the contract between the board and an agency is an important document that defines the relationship between the two organizations. As the demand for greater accountability and increased productivity appeared, boards altered contracting methods. Some boards employ a grant-type contract. Others use performance contracting. Still others use a purchase of service methodology, either with or without performance standards. As these techniques have been further refined, some boards have opted to purchase services via competitive bid.