I don't have a moral objection to moving the work in house, but I have practical doubts about the execution.
Governments deliver excellent results quickly only under narrow circumstances, and all of the examples I can think of are essentially some form of authoritarian rule.
For instance, In WW2 we had USA, Germany, and USSR, and they were nominally three entirely disjoint political systems, but all of them adopted nationalized command economies, and restricted personal freedoms and non-wartime activities of the citizenry. Each party claimed it was locked in an existential war of ideas and values against the other parties; but all three adopted functionally the same authoritarian wartime command economy (in principle)
Each had astonishing and rapid achievements despite very nominally different structures.
The American advantage in all this is that compared to its national peers, it is functionally the least odiously-authoritarian towards its citizenry. In both NSG and USSR, too much disobedience towards the state micro-managing your work was cause for execution.
The US model of significantly privatized R&D gives an interesting blended model: you have authoritarian corporate leaders (like Musk), who work people _hard_ and crank out results quickly - but if someone doesn't like working for Musk and quits, they are not committing a crime against the state. So America gets good results fast, but the people are oppressed somewhat less.
China is "nominally" communist but is really more National Socialist (with Han ethnic supremacy being the analogue to what Germany was doing); the key is they have a society run by authoritarian technocrats that has "communist" window dressing the pragmatic advantages of diverging from Communism when doing so would be beneficial. They are doing the "big results with blended authoritarianism" thing pretty well these days.
The speed of US sector private innovation is nothing to sneeze at, as much as we have stupid companies doing stupid things slowly and badly.
SpaceX has dramatically outperformed NASA at manned space flight for the last decade. I think most engineers want the Apollo-era NASA to come back.
It seems that without the ruthless focus of being in a war you might lose, govt seems to not be in any particular hurry and to have a lethal inability to focus on the right things and to shut off distractions.
Our form of government is slow by nature and by design, which is why we simply throw it away when there's something scary going on (WW2, Covid, etc). The Romans at least codified this into their system and national mythology for a while. We still fight for "freedom" while having price controls, conscription, and butter rationing...