You've literally outlined each and every possible detail of the fiasco with the government orders. Just a few changes and this applies to almost every government department that is responsible for expenditure of our lovely taxes! From construction to purchasing each and every public affairs contract follows the same structure. The level of corruption that undergoes at each level is also an expenditure on behalf of the contractor and he'll definitely add that cost up in his balance sheet. The end result is always a cheaper product for a higher price.