Public–private partnership—Development of long-term relationships in public procurement in Germany

Hybrid partnerships are well established in the private sector combining market efficiency with the possibility of hierarchical steering mechanisms. By implementing Public–Private Partnerships (PPPs), public authorities seek to benefit from cooperation with specialised suppliers. However, many complex factors, including legal regulations, have to be considered in relation to outsourcing activities in the public sector. The decision on public–private cooperation is not driven only by economic principles. This paper deals with the economic and legal decision process of PPPs. The theoretical and legal framework is then applied and illustrated through a case study of the German Aerospace Center (Deutsches Zentrum für Luft- und Raumfahrt e.V./DLR).