Yes, those are all good points and things that provide value, but could certainly could be handled more effective and cheaply otherwise.
That is not how you get a business profitable.
The problem is that the government has little, if any, incentive to be profitable. After many decades, what we're seeing now is a result of that folly. When an organization spends nearly 80% of its budget on compensation, benefits, and retiree health benefits pre-funding it should become pretty obvious there is zero chance of recovery.