- The contractor had no budget. Our servers were out of date and we were running out of date OSes and software. We were all paid below standard and overworked.
- We had a tiny budget at the agency to buy things at the very end of the year. We ran up to date software and OSes, except for a few large complicated systems that were setup with grant money. We were all paid well below standard. I was no longer on call at all times of the day and night.
Contract awards go to the lowest bidder.
When you only have to handle the simple stuff, it's much easier to make it a great experience. AAA is basically the EZPass lane for the DMV.
That's not to say that a full-service DMVs shouldn't be significantly better in most cases, though.
Where I live that's exactly what we have. We have a number of privately owned tag agencies that handle most requests which don't require an in-person visit to the DMV (like a new photo id).
This is fast and takes far less time than visiting the DMV. The various DMVs are bloated beasts with too-large budgets, yet they can't seem to staff people at all their windows.