The privatization of juvenile corrections has been served by the Federal Juvenile Justice and Delinquency Prevention Act of 1974, which mandated the deinstitutionalization of status offenders, and the provision of funds for private juvenile correctional institutions under various titles of the Social Security Act. In Massachusetts, the extensive privatization of juvenile corrections has been influenced by the closing of juvenile training schools prior to the development of an alternative public system for handling the deinstitutionalized offenders and policymakers' belief that the State could not provide the kinds of innovative, experimental, and flexible programs desired. The accountability of the private sector for services to juveniles under court jurisdiction is a major problem. Evaluations of the cost effectiveness of private sector services compared to similar public services have not yet been conducted so as to provide unequivocal results. Such evaluations should review the contract bidding procedure; define recidivism and collect relevant data; examine staff recruitment, hiring, and training; interview program graduates; and structure a mechanism for informal monitoring. An annual evaluation report should be required from each private sector provider, along with an annual public sector review. 39 references.