Because there's a more robust legal framework for curtailing the inevitable abuse when the government does it than when it's done via the "oops our contractor who's a private company" slight of hand.
Same basic reason I'd rather have the cops after me than have the environmental/zoning/whatever civil enforcement jerks after me. There's just sooooo much more scrutiny (which really says a lot considering how bad the cops are).
Said by someone who's clearly never had cops after them...