Make or Buy Decisions Achieving the Right Balance of In House and Contracted Services

Utility managers deliver services through a combination of in-house personnel and contracted services. A significant portion of contracted services involves the use of consultants. There is an appropriate range of tasks and functions associated with each of these two human resources, with some overlap where either may be suitable. Over the course of time as needs and practices evolve and shift, the balance of in-house and contracted functions may stray from the intended proportions. Seldom or never is this a conscious process but rather one of a continuation of daily practices which do not keep pace with changed conditions. The City of Baltimore Department of Public Works became aware that a disproportionate number of consultants were “embedded” within the City staff ranks and had gradually assumed some functions which could and should be performed in-house.The methodology undertaken by the City to address and improve this condition was not a detailed and specific program. Rather, the general approach involves inventorying functions being performed by “in-house” consultants under contract and identifying those core functions for which City staff delivery would be preferred. Implementation of the desired realignment of services delivery is a lengthy process involving considerable near-term effort and investment. Additional in-house staff with appropriate capabilities must be acquired and both existing and new staff must receive appropriate training and instruction. The City has acquired significant additional personnel and continues to do so. It is worthy of note that a significant proportion of the necessary training and knowledge transfer must come from the consultants currently performing those functions.