wasting money so they could ask for more money.
When one strongly encourages government doing business with contractors over hiring govt FTEs, it should lead to (1) all technical duties being offloaded to contractors, (2) loss of govt FTEs with technical expertise, (3) inability to hire replacement govt FTEs because of stigma and budget priorities, (4) govt FTEs taking on contract administration duties, effectively administering the production and maintenance of things they know nothing of and have no interest/investment in, who are working with (5) businesses (private corps) whose legal duty is to make profit, employing management, sales, and technical people (contractors' employees) whose primary priorities are their own careers.
(6) is a bonus. If you get to hire a technical govt FTE somehow, s/he will start identifying the inefficiencies and irregularities of the contractors' practices. That means his/her manager and colleagues will feel threatened or fear retribution (for contract mismanagement), pushing the new FTE out in one way (demotivation) or another (bureaucratic and/or political games).
No one is evil or lazy in this dynamic. It's more simply the unintended consequences of public policy choices, which have slowly became the basic tenets of the culture of societies implementing those choices and quickly creating very sturdy social structures and roles.