In Kaohsiung Hsien, all social welfare institutes are established by the Government and operated by the private companies. Therefore, we may well say that Kaohsiung County plays an vanguard role for other counties and cities in Taiwan.However, owing to the differences in positions and roles of the cooperative parties, the county and the entrusted institutes divide duties between them and share responsibilities with each other, but there is still a big difference in their expectation and interaction. This study was aimed to understand the current situation of the couny government and the institutes through interviews. In addition, the problems and difficulties in implementation of the Service Contrace were discussed respectively according to the five stages of signing the contract. We also analyzed the factors causing those problems and difficulties from six major phases. Finally,We made suggestions to the government and the institutes from three aspects: government's policies, cooperation and interaction, and suppot.