You’re a federal employer and you have some "dead weight" you want to get rid of. One method is to privatize your services. Privatization allows the federal employer to "abolish" all jobs within a given department and let the new company hire who it chooses. The new company can screen each employee and see who it wishes to keep.
The danger in this approach is that the new employer will not the old employees. Most new employers would want to hire some former management person to help them screen the old employees. What if the former manager bases some or all decisions on prejudice? This hiring process would present some temptation to. for example, to get rid of older employees or those might be chronically ill. If the new employer relies on the former manager, then the new employer may be just as liable as the manager for improper motives.
In any privatization situation, the new employer needs to watch carefully how it makes hiring decisions.