Please don't interpret my opinion to think that I'm for rampant waste in private contracts. I'm all for a governmental entity holding down costs. They can even say so in the RFPs that they put out. But, the fact remains that private companies can do this stuff cheaper than the government.
For instance (all this is public record), when my company won the Superstorm Sandy relief contract, we were the lowest bidder (and the most experienced). And, we weren't the lowest by a little. The next company was 3x higher than our bid of $67 million. For a $1.8 billion contract, we bid roughly 3% of the cost as "administration".
But, you should know what goes into that. That included the cost of renting 10 locations for people to sign up, purchase of computers (property of the state, once the program is over) for 700+ people, salaries for those people, benefits for them, customization of websites and computer systems, community outreach, quality control, facilities management, operations, and a bazillion other things. Spread among 3 years (life of the contract), and among 700 people, the government is spending roughly $32,000 per person, per year, to administer this program.
Is that outrageous?