If your goal is efficiency, it makes no sense.

If your goal was something like contracting government functions to businesses owned by you or your friends, and your pretext for doing it was that government was incompetent and couldn’t work, this would make sense as a move to remove both competition and people who can disprove your “smartest guy in the room” shtick.

They’re pushing so much claiming that the DOGE people are geniuses who can fix everything, but then detail after detail confirms that they’re not actually that good but they are very interested in politicizing what are ostensibly non-partisan activities.

For the same reason you fire the inspectors general and the JAGs, shut down corruption investigations at the DoJ. They're systematically eliminating the people whose job is to make sure laws and rules are followed. Useful services are cut, while money is redirected to favored contractors.