Government contracting is heavily incentivized to privilege companies which have close ties to government officials. Have a look at the political scandals of the last 8 years in Brazil. Nearly all of them had to do with officials getting “favors” from companies in exchange for government investment and contracting deals.
As long as the government deals in the peoples’ money instead of suffering from its own choices, you cannot compare government contracting with the open market.
As long as the government deals in the peoples’ money instead of suffering from its own choices, you cannot compare government contracting with the open market.