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To be fair here... The old guard still aren't working on reuse even after SpaceX not only championed it but actually succeeded and proved reliability.
The old launch providers are still just throwing their shit away and still cost billions of dollars for launches.
The Commercial Resupply Service and Commercial Crew Programs have also achieved better standards than NASA had when they started them, and at much cheaper cost than the previous solutions.
Privatisation isn't inherently bad, and importantly, the money is still being handled through NASA for oversight.
I bet if you offered them grant money to develop it... it wouldn't have been left on the table.
No, but they wouldn't do anything beyond the exact specific minimums of the grant either.
And you think a private business will do anything more than the minimum of a contract?
Yes
SpaceX has with their vehicles and options. They're all more capable than the contact they were built under.