Competitive tendering and Best Value in local government

The Government has introduced legislation to replace compulsory competitive tendering (CCT) with a new regime of Best Value (BV) in local government. Although CCT is to be abolished, competitive tendering is retained as part of the BV framework. The specific role of competitive tendering in BV has n ot been identified-what are the circumstances that determine whether counci ls should provide services themselves or seek external suppliers? The autho rs develop a theoretical framework that may help central and local policy-m akers to answer this question. The framework emphasises the joint importanc e of organizational performance and contracting costs. Practical issues tha t arise in the application of the framework are also identified.