In response to the problems caused by categorical funding for services to children and families, the National Commission on Children recommended a series of changes in the organization, administration, and implementation of programs at all levels of government, to encourage a more collaborative and comprehensive service delivery system, including the decategorization of selected federal programs to bring about greater cohesion and flexibility among programs for children and families. One method that has been successfully used to decategorize federal and state funding is an administrative tool called a "master contract." Master contracting has been effectively used in New York State to simplify administration for multi-funded service providers and to promote an integrated, outcome-focused service delivery approach. The New York State experience with master contracting, while limited and specific in its application, is instructive for other governments and provider networks attempting to integrate funding and services to better meet the comprehensive needs of children and families. This paper provides an overview of master contracting as a promising addition to the system reformer's tool kit. Drawing on the New York State experience, Section II provides a basic introduction to master contracting; Section III highlights what has been learned about the benefits and challenges of utilizing the master contract approach; and Section IV concludes by considering the potential implications and applications of master contracting techniques for the State of California. (Contains 2 tables and 4 footnotes.)