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The production of many public services is achieved through local government outsourcing (Anguelov, 2020). Hence, procurement and contracting are related to much of the work these governments do. Local governments have different procurement and funding models available to purchase good or services. This study examines the effect of different procurement and funding models on the performance of the provided public services. Examining the procurement of youth care services by seven Dutch local governments, we aim to understand the effects of the use of various different procurement and funding models. Using two rounds of interviews (in 2019 and 2025) we analyze the dilemmas municipalities face when procuring youth care, how they perceive the performance of youth care providers they selected, and how they have dealt with their dilemmas over time. Preliminary results reveal three main challenges: how to maintain a balanced budget while delivering sufficient care, the trade-off between tailor-made local care solutions and wider interests and nationally operating providers; and the balance between formal and relational mechanisms to govern the contractual relationship between buyer and supplier.