Earlier quoted context omitted.
This doesn't really seem like a public/private difference, but an enterprise/non-enterprise difference: Fortune500 firms are no more efficient than government contracting is, really. While it's a lot in other contexts, $33m for a custom enterprise software project, even one that seems like it ought to cost much less, is pretty middle-of-the-road as a price.
Having worked at a company that's top 20 in the Fortune500 and having a good friend who does government contract work... you have absolutely no clue about what you're talking about in terms of the relative amount of waste exercised by government vs corporate entities. The fundamental reason why there's such a difference in efficiency between private efforts and government ones is this: Private companies that are horr…
If you work for a company like Microsoft or IBM or Bank of America, you work in a bureaucracy at least as dysfunctional and Byzantine as an average US state. The Federal government is a whole other beast unto itself, but there are probably companies as screwy as they are too.
The fact that the private entity purges some folks doesn't make them better.