Business Process Re-engineering (BPR) has gotten off to a strong start at the city precisely because of Proposition C. Initial resistance to this process by employees was replaced by support when Prop C was placed on the ballot and employees confronted the possibility that their department could be targeted for managed competition. 
BPR gives city employees a chance to make their department more efficient, and thus more competitive, so they have a better chance of prevailing if and when they are targeted. Without the prospect of Prop C on the horizon, BPR would be going nowhere.
The charge that an open, transparent and fair competition will lead to “corruption on a grand scale” is ridiculous on its face, and ignores the “corruption on a grand scale” the current system at City Hall has produced over the past decade.