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If a municipality contacted work with a second municipality

where the second municipality had...
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.
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Answered in 14 minutes by:
2/1/2013
Law Educator, Esq.
Category: Legal
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Experience: JA Mentor -Attorney Labor/employment, corporate, sports law, admiralty/maritime and civil rights law
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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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