The Android app cost 106k btw. So looking at this guys hourly rate, it would take approximately 6 months of 40 hour weeks for him to cost that much to do the app.
So if he:
Learned out to submit the forms that got him into the bidding
Made changes to his company required to make it seem a valid bid target
Filed the correct forms to put in his bid
Factored in correctly the amount of oversight and travel that would be required to get even a simple app done according to the whims of the people hired to get it made
Used server technologies compliant with government desires, including ones he may never really willingly touch with a 10 foot pole
Then MAYBE, just MAYBE, he'd be able to go as low as say, 60k or so. And that's for a small indie dev. Now look at a bigger company doing this app (as the government likes support, unlike a single freelancer can necessarily provide), and you easily hit the 106k range.
Does it not work well? Sounds like it works like crap. But complicated crap still can be expensive to make.