What is an example of service contracting?

Service contracting involves engaging a third-party provider to deliver a service rather than acquiring goods or physical items. In this context, garbage pick-up by a private entity is a clear example of service contracting because it involves a company being hired to perform a specific service—removing waste from residential or commercial properties. This arrangement allows an organization or municipality to outsource the management of waste disposal rather than managing it internally or purchasing equipment to do so.

The other options primarily pertain to the acquisition of goods or materials rather than services. Purchasing office supplies involves acquiring tangible products, while buying construction materials also focuses on acquiring physical items necessary for building projects. Acquiring land for development is a real estate transaction rather than a service, as it pertains to the purchase of a physical asset. Thus, garbage pick-up by a private entity distinctly represents service contracting, illustrating the procurement of a service instead of a product.