In my 18 years experience with the feds, I see the same. For example, a modular building that I could have bought privately on the open market for 170k garnered bids ranging from 500k to 750k. It was ridiculous. When presented with the private quotes and asked if they’d like to revise their bid, they all said “nope”. And we paid it, because procurement rules are such that there’s no other option.
Or in my current job, I want to be able to contract a local person to do the dirt work for a remediation project. But over certain thresholds, I have to put it out for bids and it always goes to some “organization preferred” general contractor in California or somewhere, who then subs my local contractor anyway but adds 30% overhead.
This is not to say every contractor is bad…I have worked with some great ones. But they are the exception in my experience because the contracting rules almost incentivize bad behavior, and a lot of the shitty ones really know how to play the system.
If DOGE asked anyone in my organization where the most waste is, I think 90% of people would say contracts.