That was only the response to M58, and "Lowest Cost, Technically Acceptable" contracts is the mandate across all of DoD, for all services.
As for "combat support":
NAVAIR has been pushing to move Sailors back out to the Fleet at the same time drawing down the number of total Sailors. They have all but eliminated all Navy billets from all of the Test Squadrons here at Pax. Half the Logistics Squadrons have some level of contract maintenance, all except Carrier Logistics (VRC-30 and 40) are Reserve with Full Time Support. All of the Training Squadron maintenance departments have contract maintainers. I see both sides. The Fleet needs the bodies.
A Fleet VAW squadron is supposed to have 15 Avionics Techs but are usually around 10, with one or two of those TAD somewhere. They haven't added contractors to the crew of a carrier and I don't see that coming in the near future so the Galley, Berthing, Laundry, and Security will be siphoning off junior people for the time being. If a Training Squadron is to have 25 ATs, since they usually have at least double the number of planes a Fleet squadron does, but they can replace 10 billets with 4 contractors to get the same work done, that moves 10 ATs to a Fleet unit. The reason it isn't one for one is the contractor doesn't stand watches or go TAD anywhere.
A typical Sailor has duty every four days. Every duty day, part of the day, say 3 hours, is taken up for mustering and clean-up of the spaces, so instead of a full 8 hour day you only get 4 "production" hours (minus lunch, IF you get an hour). Every third or fourth duty day you have watch for 8 hours, usually after your normal shift, so you leave work early on that day and come in late on the next one. All of the Sailors have madatory training for at least two hours a week. The contractors don't transfer after a couple years and get replaced by a junior guy that has to be trained from the beginning. Since they are usually senior guys and system experts, one hour of the training a week is given by the contractors who know the system best
On the other hand, that same Tron Shop is hard pressed to keep up with the workload of 18 aircraft. The few extra bodies would be benificial to keeping the planes working. Even the most junior kids is good at getting tools and parts

Also as FQ mentioned, there is some monetary incentive to leaving and going contractor, but not as much as a lot of peole believe. I actually made more money as an E-6 over 12yrs than I did for Grumman as a junior Tech/Field Engineer. My take home was around $2800 in the Navy but closer to $2000 with Grumman. Add in what I didn't pay in health care and it's closer to $3500.
The Navy has looked at the costs associated with the VRC squadrons going contract maintenance a couple times. They are currently only flying strictly from the boat for a very short transit and spend the rest of the time on the beach. There is a small "catch crew" on the boat for launch and recovery at sea. The entire detachment is around 50 people. With a contract team it would be around half that, 10 military flight crew and 10-12 maintainers. A rotation of four of the maintainer would stay on teh boat to catch and the rest would work from whatever base/airport the planes were flying out of. If a plane broke on the deck and the catch crew couldn't fix it, they would bring in a few more with the second plane, or borrow a couple people from the Fleet VAW squadron. They keep revisiting it because they need some of those maintainers in other squadrons, plus they are loosing a lot of billets to drawdown.
BTW conteractors overseas are required to comply with the same Status of Forces Agreement as Servicemembers, so although not technically under the UCMJ, they still have to follow the rules. BLackwater got away with it because they were under contract with State, not DoD, but would point the finger at DoD when something went hinky.