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

A government contract is an agreement between a government agency and a private individual or organization in which the private individual or organization agrees to perform specific tasks for the government agency in exchange for payment. A public-private partnership (also known as P3) is an agreement between a public sector entity and a private sector entity in which they agree to share the risks and rewards associated with a particular venture. The main difference between the two is that a government contract is generally a one-time transaction or agreement between the two parties, while a public-private partnership is a long-term alliance which involves the sharing of resources and benefits. In public-private partnerships, the government entity and the private sector entity collaborate to create, finance, manage, and sometimes operate a project. In terms of North Carolina government contracts, the North Carolina State Contracts Act governs the awarding of contracts with the state. This act requires that contracts be awarded to the lowest responsible bidder determined to be able to fulfill the contract requirements. On the other hand, public-private partnerships in North Carolina have different rules and regulations that they must follow. In particular, the North Carolina Public-Private Partnerships Act of 2009 governs these partnerships and includes specific guidelines on how they are to be structured and operated.

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

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