Government frustrates market parties.
Despite good intentions of government agencies to open up its project market to all parties, it remains a closed circle within which selection is made.
Obtaining public procurement is an almost impossible obstacle for outsiders, at the different levels of government. Opaque and complex procurement procedures in particular prove to be an effective defense mechanism. Only companies that are fully committed to public procurement appear to be the most successful. By specializing in procedures and obtaining the right wheelbarrows, they are able to realize a permanent basis.
The effect is that government agencies hire the same companies and the same interim, project managers and consultants every time. That may be familiar to the government, but it does lead to impoverishment and ultimately to a standstill when it comes to the development of a government organization. 
In addition to the procurement procedures already mentioned, the additional requirements are an obstacle. One of the exclusive grounds is recent experience within the Government. Now it may be beneficial to know a specific sector, but it is not a necessity. However, recent experience within the Government is used as a knockout.
Recently I subscribed to a Public Contract with the aim of optimizing existing processes and making them Lean. Furthermore, the candidate had to have knowledge of information management. In view of my years of experience in this field, it seemed an excellent assignment. So during the feedback I turned out to be purely rejected on the knockout criterion, government experience. Just as good friends, and on the way to the next opportunity, but it is strange. All the more since I have good experience within government organizations and other public organizations. Only not in the last 3 years as required.
The argument, knowledge of the sector / company, is often used by organizations to frustrate changes. It is a false argument that realizing process optimization depends on the sector or organization.
Process optimization is mainly about changing the behavior of the employees involved. The technical optimization of processes is not essentially different between different organizations. Absolutely there can be other conditions and limits. However, a good consultant distinguishes itself in this respect by correctly including this throughout the entire process. Just as much stakeholder management, especially in politically sensitive environments, is a precondition for success. But that is also not reserved for government organizations. Within large organizations such as global players, this is often more complex and sensitive than within many government agencies.
Illusory market forces.
In the current market, clients can set any requirement they want and certainly far-reaching knock-out criteria. In a way, that is market forces. Market forces also provide a level playing field for all parties. That is what the Government, according to its own outspoken policy, aims for. The moment that government agencies use knockout criteria, which are not actually, she shoots in her own foot.
As a result, the old circle will be maintained and external parties will avoid the Government. New, up-to-date knowledge or even innovative solutions, in the various areas, will then remain out of reach of the Government. Because the organizations that operate within the circle have few incentives to offer the best possible or most innovative solution. Because any outsider with too little or no government experience, no matter how good the offer, is by definition knocked out.
1 Definition of madness: to manage your business as your always have managed it, and then believing that things mysteriously will change and improve.