That was the common transition where I worked. Do gov stint, get into a great office, establish a name for yourself and get the right access. Then transition to contract, bounce between them as they contracts are merged / transfered etc. but still make multiples greater than as a Civilian. Some billets were GS 9-13. Only difference was education background, same work same tasks. Same contract could be making 135k base plus profit share or guaranteed bonuses. The sky was the limit for some specific people (though not everyone got these offers, just like most won't get a FAANG job).

Multiple programs were built to fix the compensation for military members whom were paid even less than civilian counterparts in the same offices. It's why the churn rate is so high. Even then, the majority of cleared jobs still aren't commensurate with external salaries.