Speaking as a government employee, not a contractor, we are actually more efficient than my previous private sector jobs. But then again, we have a "build it don't buy it" culture here with a lot of love for open source throughout our services and really only use consultants on ultra specific jobs, due to head count caps from our legislature. Sure there's some union cruft here and there but I've seen similar dead weight in the private sector.

Perhaps you should consider consulting for less well-funded segments of the Government? The constraints make for ingenious solutions.