The military and government in general makes extensive use of contractors for specialized tasks, but manages to audit and limit their behaviors to the degree that they're performing work on behalf of the government, recognizing that contracting out government work doesn't make it not government work.

How are these any different?

Even if they are contractors for specialized policing (something I find dubious, but am not sure is actually a bad idea), why wouldn't they still be subject to regulation as government employees while performing government work?