You're not at all wrong that we don't see the benefit we should for each dollar spent, and I wish we could see some systemic fixes to address these issues beyond the age old "throw more money at the problem"
I will add a fresh anecdote however. I was recently involved in bidding a project for a municipality, it was a FEMA mandated sewer improvement project. There was one respondent to the RFP (ours), that was substantially higher than the Engineer's Estimate. Aspects of the bid are still under review by state offices and FEMA, thus the bid was rejected, and the project will circle back for another round.
Was the bid high? Was the Engineer's Estimate low? Both? Why did no other contractors bid on the job?
There only being one respondent can certainly have pushed the price higher. I know for a fact that my portion of the work was estimated responsibly, but it was nonetheless expensive due to a tight schedule required by the city, and restrictions placed upon the work by proximity to residences and historic structures of concern.
Can the schedule be opened up to allow for less pressure? Can the specifications or restrictions be relaxed? What will entice other parties to bid? Can the review process by outside agencies be sped up to allow for the project to proceed? In my experience, such reviews always eat away at the project lead-up time, without respective time added to the schedule to allow the work to be performed. It's a lose-lose.
And I kinda lost what I was even going for here. Anyway, you can see any number of stumbling blocks that can be addressed, for one small sewer project. Expand this to public works across the country and imagine it.