This study explores influential factors in choosing service delivery modes in local governments. Influential factors consist of two main parts. The first part is public values and the second part is relevant to organizational environments. The analysis indicates that the more County Administrators and City Managers perceive efficiency and customer orientation values from NPM in determining service delivery modes, the more local governments choose contracting out. On the contrary, the more County Administrators and City Managers put an emphasis on fairness, political accountability, and employee safety values from post-NPM in determining service delivery modes, the more local governments choose delivery by public employees.

□ Key words: contracting out; public values; post-NPM