[analogwzrd]

It's notoriously difficult for the government to fire an employee. It can also be difficult to fire an employee in a defense contractor. From what I know of Anduril, part of their business model is that they've found a way to handle government procurement differently where they are not as constrained? They may well be able to fire people more easily, but I think they might also do a better job of hiring and retaining talent.

The government outsources things to contractors because they have no idea how to manage those projects. Do you want your mayor as the foreman for the crew paving your roads?

As with most businesses, the government has the money but not the know-how so they need to outsource or contract.