Thank GOD theses guys didn't have to bid on the contract!!

[The One and Only...]

No, it really doesn't. Maximum profits always grow from the point at which demand and supply interact, even when a monopoly exists. Competition merely increases our chances of finding that point and raises incentive to find cheaper methods of production and new product development.

If Halliburton overcharged relative to their contract, they could be criminally prosecuted. In addition, were there a bid in the contract, consistent overcharges would have allowed competition to form and undercut them.

I imagine that, even when considering these overcharges, we are still better off than we would be if the government was not outsourcing.