You seem to be under the impression that the government itself doesn't have the same problem. Government agencies often over bill, over budget. They have an incentive to pad everything and to never lower costs because their budget will be lowered otherwise. Contractors on the other hand, have to compete with other contractors so while they can try to over bill, if they bill too much the government has an incentive to switch contractors.
Neither system is perfect.
> Neither system is perfect.
Yes, thats why people arguing that private companies are always better are so annoying.
You get that you're actually agreeing with this post right?
> They have an incentive to pad everything and to never lower costs because their budget will be lowered otherwise.
Sure, but in the absence of widespread corruption (which until now, the US has been relatively clear of) they don't just get to go home with that budget in their pocket. They're still paid on standardized pay scales. Any extra budget still gets spent on the actual org or project, with the exception of random things like travel or office supplies.
The contractor takes home every extra dollar as profit.
I don't disagree at all that neither system is perfect, of course, but just saying.