The private corporation is not dictating to the military, it’s setting the terms of the contract. The military is free to go sign a contract with a different company with different terms, but they didn’t, and now they want to change the terms after the contact was already signed. No mytholgization needed, just contract law.
The country is sovereign. It can just make a law democratically that changes things. The sovereign must act on whatever is in its best interest. The method of action is democratic in this case.