Since the beginning of the new administration, its policy has emphasized small government and performance improvement of public sector. In this direction, privatization became an important issue and central government tried to privatize public enterprises. In America, contract-out is another form of privatization in local government and contract-out is understood as general and useful policy tool to privatize some of local government functions. Based on previous contract-out studies since the year 2000, we set up the questionnaire about current situation and performance satisfaction. We asked the officials of 245 local governments in charge of contract-out about three main parts: operation, monitoring, and performance. For the statistical analysis, we employed ordered logit method by ordered regression analysis.