THE BAIN ADVANTAGE:

Worldwide employment for U.S. Government Inc. is estimated to be over 2 million, a completely unmanageable number for a venture like this. Total compensation for this company is roughly twice the level of its private-sector counterparts. And its retirement and health-insurance benefits are so large in relation to contributions paid that its benefit plans are careening toward insolvency.

In fact, the total debt of this firm now equals its total income -- an unsustainable position that suggests to many observers that future financing needs will not be met.

The product line of this troubled firm has been rejected over and over by growing segments of its customer base. And its product pricing (taxes) is not even remotely competitive. Even worse, heavily unionized work rules and regulations are so onerous that the prospects for even reasonable productivity and efficiency are long gone.

Its credit rating? That's been marked down, with more downgrades expected in the future.

The very troubled U.S. Government Inc. had long been either number one or in the top three worldwide in terms of economic freedom. But as a result of all these deteriorating conditions, it has fallen four years in a row in this category, slipping all the way to 10th. In fact, over the past 10 years, the firm has barely grown and its share price has been flat. Without the kind of radical change that comes from a takeover and turnaround, more economic slippage is baked in the cake.

Restructuring this company seems a hopeless proposition. But wait a minute. There's a highly regarded private-equity operation located in Boston that has a good (but not perfect) track record in turning around hopeless ventures. Though there have been failures for this firm, notable successes include Staples, The Sports Authority, Domino's Pizza and Steel Dynamics.

Follow @brothersjudd