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The paper domestic policy tool choices concerning the accomplishment of EU policy objectives, as embedded in the European Social Fund (ESF), which result in the creation of a quasi-market for educational service delivery. The main hypothesis of the research is that the weak regulation via tender documentation generates four adverse effects in our country cases: 1) it leads to low propensities to form inter-institutional and inter-sectoral partnerships for organizing and delivering public services; 2) it leads to a centralization of contractors to a small number of urban clusters, causing massive discrepancies in terms of geographical equity; 3) it leads to a convenience-driven purposeful selection of project beneficiaries that is also afflicted by an upward bias in the vulnerability continuum; and 4) it leads to high propensities to develop convenient, rather than efficient and innovative projects. Evidence suggests that, under the above circumstances, the social-service delivery contracting as an instrument of governance is no longer regulating against risks for beneficiaries, but fuels increased social division in access to public services.