Large private sector companies operate on a 30% profit margin and have exponentially lower capex and opex compared to the federal government.
The federal government with exponentially higher revenue that exceeds the entire market cap of these valuable companies actually runs a deficit while predominantly providing inferior services in competing categories; while having insanely high opex and capex.
This inefficiency passes everywhere, including to their contractors — because of all the random shit, compliance, regulations in government contracting, the average margin is somehow only 10-30%. They charge often 3-100x the price of a good or service when provided to the private sector yet make 3x >less< profit.
The scope of the inefficiency is unimaginable, something we must absolutely not accept under any circumstances if we want to have a future as a country that does not involve being a permanent debtor to other economies.
Contractors aren't allowed to have excessive margins or profits because that would be gouging... so they inflate the number of necessary staff so that their capped overhead costs deliver the amount of profit they want.
The federal government with exponentially higher revenue that exceeds the entire market cap of these valuable companies actually runs a deficit while predominantly providing inferior services in competing categories; while having insanely high opex and capex.
This inefficiency passes everywhere, including to their contractors — because of all the random shit, compliance, regulations in government contracting, the average margin is somehow only 10-30%. They charge often 3-100x the price of a good or service when provided to the private sector yet make 3x >less< profit.
The scope of the inefficiency is unimaginable, something we must absolutely not accept under any circumstances if we want to have a future as a country that does not involve being a permanent debtor to other economies.