Final answer:
The government uses contracting out and third-party financing as two common approaches in complex contractor selection. Contracting out involves private companies taking over services from the government, while third-party financing deals with large infrastructure financings in partnership with private entities.
Step-by-step explanation:
In more complex acquisition scenarios, the government often uses contracting out and third-party financing as the two common approaches in contractor selection. Contracting out is the process of issuing government contracts to private companies to provide services that were traditionally managed by government entities. In contrast, third-party financing involves the government signing an agreement with a private entity to form a special-purpose vehicle for financing large infrastructure projects, like government office spaces or military housing, through private financial markets.
These models of privatization have been criticized in different aspects; contracting out became exceedingly prominent during initiatives like President Bill Clinton's National Partnership for Reinventing Government and the reliance on contractors was notable during the Iraq War under President George W. Bush. Third-party financing, while used for large projects, has been pointed out as inefficient and costly by departments such as the Congressional Budget Office.