- The contractor had no budget. Our servers were out of date and we were running out of date OSes and software. We were all paid below standard and overworked.
- We had a tiny budget at the agency to buy things at the very end of the year. We ran up to date software and OSes, except for a few large complicated systems that were setup with grant money. We were all paid well below standard. I was no longer on call at all times of the day and night.
Contract awards go to the lowest bidder.
Where I live that's exactly what we have. We have a number of privately owned tag agencies that handle most requests which don't require an in-person visit to the DMV (like a new photo id).
This is fast and takes far less time than visiting the DMV. The various DMVs are bloated beasts with too-large budgets, yet they can't seem to staff people at all their windows.
When you only have to handle the simple stuff, it's much easier to make it a great experience. AAA is basically the EZPass lane for the DMV.
That's not to say that a full-service DMVs shouldn't be significantly better in most cases, though.