There's a myriad of ways to go about this:
- NASA style, where they give licenses and certification to private companies.
- City council style where they authorize a handful of private (usually pet) companies to take over certain tasks.
- Congressional style, like when the US Postal Service was privatized, where an existing system is essentially swapped in with a commission that gets a monopoly.
- Complete abandonment of the task and allow the free market to grow on its own.
I'm sure there are many other ways to screw it all up, too.
Indeed there are hehe. Best defense is self-defense, and an armed people ensure no larger group gets away for long with corruption or tyranny. That's why regimes/governments like to take guns away from people and make them dependent on a centralized authority for all defense.
Brazilian President - "I Want Everyone Armed"