According to some research materials I have been checking (look here), the government has been going crazy in an effort to privatize every service, every requirement they possibly can. As a matter of fact, the figure I have found most often, is that government outsourcing has increased 86% under the Bush administration, with somewhere around 50% being outsourced through "no bid" contracts, which has led to various outcries of his use of "cronyism," which allegedly is showing undue favoritism or influence in selecting the contractors involved. In fact, a 2010 report of the Heritage foundations seems to suggest making appointment decisions based on loyalty first, and expertise and experience second (here).
Although the President has claimed success in "cutting the federal bureaucracy," I really don't think this is what the American public had in mind. Although many corporations are involved, the one key common denominator is a propensity to support Republican candidates with finance money, and are generally very kind with aiding the GOP (although to be absolutely fair, most have hedged their bets with donations to the Democrats as well, leaving no stone unturned).
One obvious corporation in terms of government outsourcing is Halliburton, whose profits totalled $2,348,000,000.00 in 2006, an increase in profits of over 368% since President Bush came into power.
Although many corporations are assisting in many projects for the federal government, the real money trains have been in the Iraqi war, and the rebuilding of Katrina hit areas (and aren't both of these doing just peachy). You may be surprised to learn private corporations have contracted with the government to not only provide the food, water, and medical supplies our troops need in Iraq, they also help to interrogate subjects, train the Iraqi army and guard the Baghdad airport and green zones, as well.
But the outsourcing train doesn't stop there. Efforts are currently in place by FEDEX and UPS to garner at least a portion of the USPS business, IAP Worldwide has been contracted to oversee the operations at Walter Reed hospital, FEMA has been reduced in favor of private corporations, and the thought of privatizing the massive social security funds have corporations clamoring to get at the incredible fees this would result in.
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