What is the difference between a government contract and a public-private partnership?

Government contracts and public-private partnerships are both tools used to fund projects and services. However, they have different characteristics that set them apart. Government contracts are agreements between the government and a private company, providing for the company to provide goods or services in exchange for payment. This payment is usually in the form of a lump sum and is made by the government out of taxpayer money. The services offered through government contracts are generally necessary for the government to operate and are used by only one entity, the government. Public-private partnerships, on the other hand, are collaborations between the government and a private entity, while also involving funds from a third-party source. The aim of these partnerships is for private companies to provide a service or product and the government to ensure that the service is provided. In return, the government gets a certain percentage of the profits made by the private entity. Public-private partnerships are used for a variety of services, from infrastructure and housing to research. In summary, government contracts are agreements between the government and a private company, with the government paying a lump sum for goods or services. Public-private partnerships involve collaboration between the government, a private entity, and a third-party source, with the government receiving a percentage of the profits.

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What is the difference between a government contract and a public-private partnership?

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