Funny.
It never ceases to amaze how a completely private entity goes caput and the public end up paying money.
The whole point of outsourcing is increasing flexibility and reducing risk so why one private company collapsing would make everyone look for someone to blame inside the govt is beyond me.

I guess the piece of the chain that is really slipping always is the "public servant" who can be persuaded to move everyone else's money to this or that company through contracts so, Why use people?

Public contract assingment and evaluation can be one of those few examples where smart contracts could really prove to be worth something. Formal rules to assign contracts and formal rules to evaluate their conditions are met. Everyone can see where the money is going and, since the contract itself can't be persuaded by fancy dinners or expensive cars, there is less room for corruption.
And it has the upside of removing a few more bureaucrats from the market as well.