I can give you more accurate information:
Bill Clinton signed an EO, never revoked, that orders all Fed Contracting companies to give all Federal Holidays off, paid.
Most Federal Contracting companies do not bundle all time into 'paid time off', at least at present. Maybe they did before, but not now. Only the smallest companies bundle.
You are correct as to the practices of actual Federal employees.
Having worked for four govt contractors in the past 15 year only one gave ALL federal holidays off. But that one short changed on paid leave time.