Design of Public Projects: Outsource or In-House?

Abstract

AbstractThis study analyzes the relative cost in New York state of having the public sector perform design work in-house or to contract out the work to private engineering consulting companies. It is important to note that the percentage of work performed in-house versus that which is contracted out varies among New York state agencies and authorities. Many agencies target a design work load of 25% in-house and 75% contracted out to accomplish their programs and in-house training goals. New York State Department of Transportation (NYSDOT) has reported that it performs 50% or more of its work with in-house forces, although in some regions the in-house design percentage is as high as approximately 80%. Because the authors believe this to be a very high percentage of in-house work when compared with other New York state agencies and authorities, the authors have chosen to focus this cost-effectiveness comparison on transportation projects and the NYSDOT. While a few studies have been conducted in this area, ...