Assessing outsourcing potential in a state dot

The purpose of this project was to develop a systematic, objective procedure to evaluate the potential to outsource functions and activities currently performed by the Louisiana Department of Transportation and Development (LaDOTD). A computer-based model was developed which evaluates the qualitative and cost aspects of contracting out activities and functions. The model was applied to three activities in the LaDOTD; highway markers, highway striping, and maintenance of rest areas. The results were in line with the expectations of officials who have experienced actual outsourcing of these activities. The model was constructed so that the perspectives it considers and the criterion on which outsourcing is assessed may be altered by the user to allow its use in a variety of settings.