Is there any evidence that government teams are more wasteful or less productive than commercial alternatives? How does spinning a government team into a government contract of a commercial vendor save the government money?
Secondly, private companies don't have to do a good job. They have to turn a profit, which could be exploitative and not necessarily legal.
Third, government agencies have budgets and audits like many public companies but not private companies. If a government agency exceeds its budget it is essential bankrupt.
Finally, if a government agency fails an audit people can be fined, fired, or even prosecuted. Government agencies are always audited, unlike many commercial companies that are only audited according to regulation and/or cause of investigation. Many of the people recently fired by DOGE are auditors that were preventing the very kind of behavior you suggest of government.