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Law Educator, Esq.
Law Educator, Esq., Attorney
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If a municipality contacted work with a second municipality

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If a municipality contacted work with a second municipality where the second municipality had previously contracted the same work to be done by a private business in the past, is this legal? In other words, would not this situation be an example of government competing with private enterprise? And if it is, I had always assumed that such action was illegal. Is my assumption right or wrong? If it is illegal, where would is this be sited?
Thank You,
Dan F.
There is no law preventing a municipality from competing with or taking the work of a private business in NE as long as the work being done are transactions that are incidental only to the administration of governmental power. See: Stadler v. Curtis Gas, Inc., 182 Neb. 6, 151 N.W.2d 915 (Neb., 1967). What this means is if the government agency is contracting with another municipality to perform a governmental task, even though that task may have been previously performed by a private enterprise, it is legal and not a stifling of private enterprise.


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