Most things people assume the US government "does" is performed by contractors. Even program management may be outsourced to specialty firms. The more first-hand knowledge I gain about any department, the more I believe this is universal.
That's certainly the case. The problem is the legal and social framework hasn't caught up with the times. It wasn't that long ago that the government was small enough to be funded entirely by tariffs. Everything has been outsourced but it's still treated as not a government action so we get all sorts of nasty things like unaccountable private prisons.