You seem to have confused socialism and fascism. A government too entwined with a small number of corporations, to the point that it seems like it's a government for the corporations rather than the people, is generally considered a feature of fascism. A government embracing some sort of anti-corporate and free-and-open solution like OSS would resemble a socialistic policy more.
But yes, I agree, the USG (and other governments) really should embrace Linux/OSS and help contribute to the ecosystem as well (unlike North Korea, for instance, which has a government-maintained Linux distro called Red Flag, but of course doesn't contribute anything at all).