Just because you shift the organization from public to private does not make the problem goes away. The true problem is incentive. For example, private contrac

Just because you shift the organization from public to private does not make the problem goes away. The true problem is incentive. For example, private contractors build the rockets for NASA. But there is no incentive to do it cheaply and right. Any cost overrun is covered by the government. This is in contrast to the COTS program initated by NASA which is oriented toward rewarding space contractors on efficiency and milestones reached. They don't cover cost overrun and responsibility lies with the suppliers. For example, if SpaceX or Orbital Science's cargo ship blows up, they're responsible.