The theory of separating the production of public service from its supply provides the theoretical guidance for the government purchasing public services from social organizations. At present, the local governments in China purchase public services mainly in the areas such as home-based care for the aged, health care, social work service, industrial service and etc. Some purchases of public service have triggered controversy. The lack of institutional safeguard, sound performance evaluation, competitiveness as well as the government's lack of ability to administrate contracts in the process of purchasing services have restricted the healthy development of purchasing services. <<