What layers? That bureaucracy exists now. It can be shrunk in fact. Now you're following a private contractor. Now you only have regulators that have to be highly trained and are highly scrutinized on the gov payroll.
Key part of this is "on the gov payroll." You're not shrinking anything, though, with regard to the entire job. That's what I'm talking about.
To parse it out a company has the people actually doing the grunt work, then managers and other people to make sure that what they're doing is up to whatever quality the company wants it to be. On top of this stuff they'll then have to answer to people in the government making sure things are up to code. On top of that, then, not doing anything you have the owner(s) siphoning money off the top.
To do things more efficient you can combine the two "managerial" roles of making sure everything is up to snuff within the company and up to regulations by just having the government do both. They then get the grunt work done, too. And on top of that, then, the owners are the tax payers, and they're not trying to extract a profit on it.
The system of government doing it can theoretically be more efficient.
And what's all this about profit? If they bid the contract correctly, then they'll make a profit. If not, then they'll take a bath. That's on them. Sometimes you lose money on a bid.
So, your system is relying on the private sector fucking up and making a bad bid on a contract? They're really not going to do that too often. They're going to make a profit. They're not doing this shit for free.
But most of this is abstract and kind of beside the point in the example we're talking about. Have you responded to that other post that I put into my reply?