A whole range of new public management (NPM) initiatives has during the last 30 years been introduced to meet the challenges of the public sector. The political aim for many of these NPM initiatives has been to get control over public spending and increase the internal efficiency of public sector organizations (PSOs). This has been done, mainly through introducing practices and programs, which has been developed within industrial organizations. In this conceptual paper we outline a service logic framework, which addresses the challenges of the public sector. We argue that this framework may counterbalance the NPM initiatives that has promoted and institutionalized goods logic practices and programs within PSOs. The main notion of this service logic framework is that citizens, as end-users, create value to become better off or to solve a problem. This is done through integration of different resources. The role of PSOs within the service logic is to facilitate resources and/or through interaction collaboratively co-create value. Drawing on a larger service system value creation, value facilitation and value co-creation can be seen as parts of a wider social system which makes them contextual. By outlining a service logic framework, for the public sector, we also suggested 12 implications for management and scholars within the field.