Is it the government that's being wasteful with tax dollars, or the company that took the money? Why is there this idea that business can be as wasteful as they want, but it's the governments fault?
Every corporation, every private charity, and every public institution that I've worked for has been wasteful, and the corporations have been the worse offenders in that regard.
But a lot of companies fail at even this basic test. It doesn't work, and it's unsupported. Meanwhile, they're getting paid more to 'fix' it while making the users run around in circles.
How would a non-technically competent government official figure out which random hacker to award a contract like this to? They can't. And if they tried they'd probably hire someone that would over-promise and under-deliver and wouldn't be around in six months to fix things if they needed fixing.
Plenty of ethics to debate, but when it comes down to being wasteful with tax dollars, there's a monopoly on that.