Before a government director of juvenile corrections decides to initiate or extend private sector contracting, he or she must examine needs, motivations and issues. The issues could be legal, emotional, practical or economic. Those who favor privatization argue that the private sector has more freedom and flexibility to start programs quickly and operate them more cost effectively, and that privatization of juvenile residential facilities and services can produce more effective services that better meet the needs of young clients. Opponents of privatization argue that the private sector cannot ensure or provide a consistent level of service; private sector involvement will lead to a lack of coordinated services and ultimately a decrease in financial and political support. The report includes chapters concerning: (1) The Private Sector as Contractor; (2) The Feasibility of Conversion; (3) Developing a Request for Proposal and a Proposal Review Process; (4) Developing a Contract for the Private Delivery of Correctional Services; and (5) Contract Monitoring. Tables