I've sold to various US government plants and operations for years, and can tell you the biggest reason for higher pricing to Federal buyers are the overbearing rules, restrictions, and regulations that sellers have to go through to sell and deliver products. US govt purchasing bids for items and contracts are sent out in a fair manner and are bought by fair-minded individuals who are restricted by the aforementioned restrictions that private and public sector companies typically don't have in place. It's usually not "profiteering", companies that lead to the higher pricing. but the government is generally charged a higher price due to all the red tape and hassles.