Of course. I have some experience(though old and long ago) with communal and governmental ICT operations. But also "the other side" :-) We have a saying here which goes like Government money is stupid money, meaning the government is stupid and pays anything. Then you close shop, and start another. For another round of stupid government money. And it doesn't even blink if it sees your name again, why should it? It's another business entity.

From what I hear it has changed just a little bit, not much, though. It also depends on state and town.

Speaking for .de and North-Rhine-Westfalia from 1994 to 2001 here.