But that's never how it's presented. It's presented as "Why does the government need a software shop? Isn't this just yet more government overreach and unfair meddling with the free market?"

So, y'know, next time you see someone arguing along those lines, remember the real argument they're making is "this has the potential to help people and save taxpayer money, but it would cut off a fat government check to me or my buddies, so I have to find a moral argument against it".