Precisely. The deal is that to have a sea-change in the way we enhance/maintain the data/services of "Govt.", there needs to be a TOP DOWN restructuring of what we have now. That is to say, those currently in the top of Govt. Bureaucratic Structure (Federal, State, or otherwise) do not have the ability or tools or vision to deal with what is needed...not now or last week, but years ago!
Rather, what they do see, rightly, is threat to their power, which is derived from the status quo way of doing business....which we all know is DOA at this point. Not just in Egypt or [ pick your favorite foreign hot spot here ], but even here in the good 'ol USA. Trouble is, the Yankee Dollar and the ability of those in power to manipulate it, diffuses that message here over time; so much so that folks like you and me scratch our heads and wonder why things aren't making practical sense....."Why can't I get hired ? I have all the credentials; I have what it takes."
The big fallacy is that folks like you are using reason and logic and assumptions based on a mostly free market economy, representative democracy, blah, blah, blah.... Mistake. Big Mistake. Management has already Circled the Wagons. And it has been going on for some time now. Like just about anywhere else, Government is in Crisis. And Full-Time Permanent Positions are difficult to justify in these changing times. Besides, if you can get enough sustained Contract Employees under you, your Golden Parachute will, more or less, be the same anyway. So why sweat it ? Just outsource.