First of all, the government contracts are awarded not on free market conditions. Like no bid contracts.
Second, you are confusing government with unions. Yes, we need the govenment. Yes we need the regulations for insurance industry or others. What does it has to do with the fact that the company has to pay someone twice as much the prevailing wage? What does it has to do with the fact the company cannot fire a worker who just shows up in the morning and does nothing?