Police administrators are finding it increasingly desirable to create new arrangements that reduce costs or minimizes increases, provide choices and flexibility, and responds positively to public sentiment. One such arrangement calls for consideration of private security firms as an alternative to the traditional sole-producer role practiced by the public sector. Adoption of the 'make it or buy it' approach to decisionmaking is premised on competition. This arrangement calls for a decisionmaking process that seeks the least costly yet most effective delivery of police services from competing public and private organizations. Simultaneous provision of police services by both public and private entities under contract with the same governmental unit could prove beneficial to both parties as well as the public. Preconditions to a contractual relationship include sufficient numbers of private security firms available in a specific geographic area to ensure competition, ability to monitor and evaluate the contracted services, legislation that allows private sector delivery of police services, no collective bargaining agreements prohibiting privatization contracts, and establishment of a competitive bid mechanism. Arguments for and against privatizing police services are delineated. A total of 20 footnotes are included.