This is now an argument I can start to get behind. There isn't a need for profit seeking or "dollar optimization" and I fully subscribe to the argument that the government can just "do things". I likewise fully subscribe to the argument that the ability for the government to just "do things" has been eroded over time systematically.
But, like, that's divergent from "This SpaceX contract is pure grift" that OP was not so subtly implying.