Anyone who's worked for a large company can tell you stories about waste and mismanagement that are on par with any born of a government organization, as has been aptly demonstrated in the past. So the real issue would seem to be size because even if inefficiency and waste scaled perfectly with the number of people involved a larger organization would have more waste than a smaller in absolute terms. However this doesn't take into account the waste inherent to having more groups doing the same thing, just try working with several DMVs to get transport permits, at that point the federal regulations will be the least of your concern because at least they're consistent. So in simple terms it's a matter of if X number of man hours are required to provide a service how does the waste accrued by more and smaller organizations stack up against one larger one. If the debate then moves onto whether or not that service need be provided that's something else all together.
Also, while it is true that the federal budget doubled between 00 and 10 that needs a bit of perspective in terms of history.
That's not strictly a government problem - 
