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

Government contract and public-private partnerships are two different types of agreements that are used to address various governmental goals by pairing public and private efforts. Government contracts are agreements between a government entity and a private entity to perform specific public services, such as constructing roads, buildings, or providing technology and software solutions. In exchange for the services, the government pays the private entity a negotiated fee. Public-private partnerships, on the other hand, refer to a relationship between the government and a private entity in which certain rights and responsibilities are shared and each partner contributes money, expertise, or services. This type of agreement typically includes activities such as managing infrastructure like ports, airports, and toll roads, as well as providing education and health care services. A public-private partnership can be used to finance, design, construct, operate, and maintain the project with private-sector financing and expertise. The primary difference between these two types of agreements is that a government contract provides for the government to pay the private entity a negotiated fee in exchange for specific services, while a public-private partnership not only exchanges money, but also involves the private entity contributing expertise or services. While a government contract may provide for a one-time service, a public-private partnership can involve a longer-term relationship and often provides additional financing and management resources.

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