Isn't this unconstitutional?
Show me the direct or indirect clause in the constitution that would apply to this situation, let alone to a local government? Government and politicians have always moves lockstep; hand-in-hand; insert your favorite cynical and noncynical metaphors to the relationship between charity and government.
It's been going on ... to well centuries before the 13 colonies were a wetdream in the adventurous and entrepreneurial spirits of 14th century Europeans and beyond.
Maybe someone's getting a kickback?
Yes. That could be the case ... in some cases. And that would be a crime of corrupt government. And sometimes, people have altruistic motives (including politicians and gov. workers).
Also... in the grand scheme of things? Big-shot and local government? That's a pretty sadsack oxymoron. You're not really a big-shot if you work in a county or town administration.
this practice opens the door to all kind of issues which constitutional government is intended to prevent...
You have a very very limited understanding of constitutional governments, let alone the US Constitution (unless you are referring to another country's constitution and they do exist... but you're extra lazy for not providing any NECESSARY context to your thread as this is a global forum covering Canada, the UK, the USA, Australia, and many English speaking countries between).
State and federal governments award contracts to profit corporations all the time. The same is true with nonprofit organizations.