O.k., make ridiculous statements about this worst case study (Which is similar to what the CATO Institute said by the way.  Reading is a terrible thing not to do.) from the Project on Government Oversight (POGO):
"As it turned out, the private contractors cost more in 33 of those 35 jobs. On average, the service contracts paid private employees 83 percent more than the government would pay a federal employee doing the same job (and that’s even taking into account health care benefits, pensions, and so on)."

So the trick is to find the jobs and services that actually are cost efficient to outsource.  That is what effective leaders and managers do.  There is no magic wand to wave to fix the debt crisis.  We need to begin now by continuously chipping away at what we can for the next few decades.

Here are two links to POGO to help you out:
https://en.wikipedia.org/wiki/Project_On_Government_Oversight
http://www.pogo.org/