Recent studies indicate that total private security employment is in excess of 1.1 million persons with expenditures of $12 billion to $15 billion in 1985. In major cities, private security forces currently are policing shopping malls, college campuses, hospital and museum complexes, individual residences, and housing projects. Some smaller cities have abandoned their police departments and employed contract agencies to perform police duties. This article examines the legal, conceptual, strategic, administrative, and financial issues in privatization of law enforcement and points up the need for reconciliation of these issues and coordination between the public sector and private security forces. 5 references.