It's common for specialty contracts (aerospace, nuclear, defense etc) to be awarded based on need. The government is conscious of how competitive the industry is, and tries to keep several firms alive in any one sector regardless of who is delivering more value. Sometimes it results in questionable choices.

They don't create contracts just to keep companies afloat (not without a lot of lobbying, anyway), but they will give a lot more money even if companies are losing money to wild incompetence. Westinghouse is a good example. They may be literally losing blueprints to nuclear reactors, but there aren't many other companies that can make reactors in the first place, and in the slim chance the government suddenly needs to make a lot (eg every sub sinks at once), they really don't like relying on unproven designs and manufacturers.

Military-industrial complex, reinvented. Instead of most contracts going to Lockheed Martin and Northrop Grumman, they now go to companies such as Blue Origin who are partnered with them.