I'm going to go out on a limb and propose a hypothesis: The DoD's hyper-innefficient contracting system rewards DC insiders and effectively limits the department's ability to invest where investment is needed while draining the public coffers of unfathomable amounts of money. The DoD's hyper-ineffective personnel system inhibits personal development while at the same time making it nearly impossible to move laterally…
Economically how it works is that the DoD secures assets and locations around the world relating to the means of production of consumer components. American interests, especially the interests of the American consumer are definitely protected and represented for.
Where this model has failed for us is put a huge deficit in our self reliance with regards to consumer production. Due to globalization, American politicians have no urgent need to educate the workforce more than they already have, they can provide security and investment to produce a source of worldwide talent, all thanks to the contractors playing their crucial role in the ecosystem of American security.
What people fail to understand is that no organization or system is perfect. The DoD isn't organized for the new kinds of warfare being performed. The main job of the DoD is to protect American interests abroad, not operate in the background on American soil against hundreds, thousands of nation-state and criminal organizations.
The FBI does this job, they successfully work with hundreds of private contractors. You'd be surprised by the scale on which they are resourceful and helpful.