The US military outsourced housing for soldier to private companies. Can you guess what happened?

That's outsourcing for you. When the government (or a larger company) outsources a job, that job will tend to be done in an exploitative way. (That's what makes it cheaper.) And if the job involves providing any sort of service to people, the service will be done badly, unreliably, and (whenever possible) in ways that endangering their health.