This is an intellectually lazy response. Why does our government always use contractors? You won't let them spend more internally to grow their departments, but you also want them to be able to handle an ever-growing mountain of job functions? You can't have your cake and eat it, too.
We should spend more internally in this sort of situation. There's no reason to inject a middleman for the sole purpose of diverting profits to the private sector.
Same thing with healthcare.
I actually personally agree with you, I was just trying to note the inconsistencies in that argument.