I don't believe that's simply a linear relationship all the way down to zero. You're talking in most cases about tens of millions of dollars in NPV over the usable capital life of the projects in question, if not an order of magnitude or 2 higher. I'm not equipped to critique the OP on every point, but I don't learn what's wheat and what's chaff from his Kafkaesque description of it all.

The government contracting system in my experience and learning, all the way back to Boss Tweed, is a MAJOR source of corruption and theft. ALWAYS sold with the best of intentions.

Just like a home lock, this won't keep out the dedicated grifter. But it'll make things a lot harder for someone looking to make a quick buck in an unethical way.

I think this example might be more telling that what you intended. A lock is meant to keep out everyone without the key, while the intent of the bureaucratic process is to keep out bad actors while letting the well intended ones through, without them needing a key to bypass the system entirely.

Maybe you missed it, but that's exactly my point. With the exception being that a dedicated bad actor won't have a real problem getting through (e.g. breaking the door, lock, or another window, or by picking it; it's really not difficult).