[ConstantineX]

All of what you say is true. Contracting to the private sector generally brings efficiency. But efficiency in the public sphere is not as important as accountability. When bad things happen, the offending parties have to held accountable in forum for all to see - which is different from private companies, where it's possible to shield the mistakes that happen. Moreover even though retain most of the benefits of being private, when they are deigned government functions they become only quasi-private and are able to use government power maliciously. That visible power with the lack of accountability makes contracting less clear cut than it appears superficially.