I’ve seen that in every sector (.com, .edu, and .gov) — there’s a huge management culture pushing untruths (e.g. “a good manager can manage anything”) and contempt for the actual workers which causes those pathological outcomes anywhere so afflicted. Part of what makes it popular is that when one contracting company produces another 8-9 figure write-off you can blame them and try again with the latest set of expensive suits swearing they’re completely different, but it’s harder to shirk responsibility if it’s people who report to you.

This is more common in government due to politics: if agencies aren’t allowed to hire competent technical staff, the contractors will be poorly supervised but when it fails the same people who cut staffing will use it to argue even more things need to be contracted out. Again, the problem isn’t the sector but the lack of an effective feedback loop.