The New York Times had a good article summarizing the rise of federal contracting. It's definitely worth a read. It surprises me every time I read an article about privatization that nobody makes the basic point that private companies should not be making a profit off of public services unless there's a very good reason for it. Contracting does have it's uses, and there should be a place for it. But it's not a default option, as the President seems to think. It's an option of last resort, because ideally public monies should be used to promote the public good. Public monies if possible should not be used to line the pockets of a few people at private companies.