This is precisely the conservative game plan though: starve the government of funds, force it to outsource as much as possible to the private sector, then when projects end up delayed and overbudget (or failing), point to lack of government efficiency and competence to justify further funding cuts.
https://en.wikipedia.org/wiki/Starve_the_beast
This has been happening since basically the Reagan era.
>> Surely the solution to criticism of government inefficiency is for government to operate well.
No organization can operate well if it doesn't have necessary levels of funding, and the government is no exception. Said lack of funding is the primary cause of the inefficiencies, which often times manifest as lack of inhouse expertise that can provide strict analysis of and oversight for projects outsourced to the private sector.