Comment That's not the entire point (Score 1, Insightful) 92
In a purely practical and objective standpoint, you are correct. It would make more sense to have employees of the city to do it.
But this is not a practical or objective world. There are politics to be played; Backs to be scratched and palms to be greased. For those in that sort of position of authority, there is a game to be played. Who can they trade this favor of a contract (with the possibility of over-payment) for some future consideration or contribution?
This is not the world of high-school civics that we were taught. These people are not there out of a sense of service to their fellow citizen or because they have good ideas that might make the world a better place.
This is the world where people have ambitions, who want to get ahead and further up the ladder of power. This is the world where people can and do get addicted to the feeling of power that their authority gives them and want only to increase it.
This is also the world where other people, further up the chain of authority tell the lower levels to who and how a contract should be presented. And because it is their boss or their boss's boss or their boss's boss's boss doing this, they fear for their jobs and livelihood and do what they're told instead of going out and shouting to the world of the corruption they've seen.