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I don't see how you addressed my point that the change doesn't in and of itself represent deregulation. Surely opening the process up to more bidders and allowing the government to more directly prioritize initiatives isn't deregulation.
Setting that aside, I only have a cursory knowledge of the background from some NYT articles I read in the spring. Those articles mentioned the concerns you give around inequality and outdated technology and systems. My understanding is that one of the first planned contracts to go to bid is to modernize the technology systems, which seems to at least be a start at addressing known deficiencies. Additionally, more targeted contracts allow the government to review for more specific goals and outcomes rather than a monolithic overarching agreement.
It's easy to list all the negative things that could happen with the process. But like you say, this bill itself doesn't solve the problems, it creates opportunities. I see opportunities to fix the problems. Your are welcome to focus on the negative and assume this is just a financial play. Both of us are predicting the future and time will tell.