The State of Florida contracts with private entities to provide 87 percent of all of its 24-hour residential supervision services for adjudicated juvenile delinquents. This justification review is designed to provide suggestions for maximizing the State’s benefits derived through the contracting process. An overview of the make-up of the State residential juvenile justice system is provided along with information concerning program placement standards, program performance standards, and funding sources. Information regarding the principles underlying governmental outsourcing of services is presented. The office recommends that cost containment may be achieved by collecting and comparing the costs of contracted services and State services; recovering the rental value of State-owned facilities used by contract providers; and require providers to follow a preventative maintenance schedule for those State-owned facilities. The statutory support for the Justification Review of these programs and the written response of the Florida Department of Juvenile Justice to the justification review are provided in appendix form. 19 exhibits, 26 notes, 3 appendices