Yeah because that's always saved us money and made things more efficient! Let alone improved the lives of people it's meant to help.
So he wants to take a system he thinks is broken and give it to someone else and what? Hope that it gets fixed?
Please!
Actually, yes, that is what he wants done. I don't know if it will work, but the idea has worked many times in the past.
NASA did some amazing things, but it did it a very expensive way. Along comes SpaceX and they found ways of doing things far cheaper. So now the government is going to pay SpaceX to fly supplies up to the space station, instead of paying NASA to do it. Far more efficient.
In fact, its a pretty well established idea in economics that the private market tends to do things more efficiently than the public. Thats not to say that all things run better in the private market, but typically it is cheaper.
So, instead of having the middle man be a government institution, it could be a private company if the win the bid. I think if the idea is to simply give private firms money to try and find ways of being cheaper, it would work our badly. But, if a firm can do the exact same thing as the public firm but cheaper, then the people in the program are far better off.