Openly admit NASA is a basic infrastructure assurance program, much like the Interstate highway system is. (Yes, it's Military capable infrastructure, for moving troops and stuff around. It turns out that useful infrastructure improves overall economic fitness and activity as well.)
Then group up all of the infrastructure spending and make sure it gives every citizen roughly equal value. Sometimes this can be justified in lower shipping costs for produced items from farms and backbone redundancy across the country. Other times it's connecting land and sea ports to the cross country grid. Evaluating a fair share of the commons and of resources to maintain the commons is a hard problem.
NASA also falls under various civic services the government proves because it makes sense for just one place to do the work; or at least for a baseline that private entities can compete against. The distribution of these programs also forms part of the weight to balance government improvements programs among areas.
Companies are incentivized to make money. In this case, the government is incentivized to provide lucrative contracts to contracted corporations.
In the 60s, when a different incentive existed, the government (i.e. NASA) was incredibly efficient.
If the government were aiming for efficiency, we might see NASA taking a different path.
And I don't necessarily think it's always a bad thing for government to government, especially for a program that ultimately has so much of an impact on military capabilities and national security.
But it's also disingenuous to say "We could if we wanted to."
Yes it's a matter of incentives. The problem is saying incentives for government work could change, is very different than them actually changing. Some of those incentives are inherently rooted as part of what makes government... government.
They have to drop whole missions after years of planning and construction because the next year's budget is a billion dollars short. It also pushes out things like SLS development because some scheduled testing or purchase gets pushed to the next fiscal year.
Shelby is more concerned with staying in office than making advances in space, and it shows. That's not NASA's fault, they're trying to do the right thing IN SPITE of the political pressure to waste money in order for a politician to be able to claim he's "creating jobs" in his state.
http://innerspace.net/congress-2/richard-shelbys-war-against...