[lotsofpulp]

It is also nice to have an entity to throw under the bus if necessary.

[eru]

And that's actually a benefit for the tax payer!

It's notoriously hard to fire public servants, or shut down underperforming departments.

It's comparatively easier to shut down an outsourced project, or switch suppliers.

(Alas, not easy enough; and the organizational skills required to win government bids are different from those required to actually deliver quality.)