I have first hand experience with this, although in Australia. My first job was working for a IT development and solutions shop (this is over 17 years ago) where they won the bid to rollout the internet and network gateways across a large number of Australian government schools. We were doing similar work for private school at the same time, and the process for the public and private school could not be more differen…
I've seen examples of this all over the UK as well, when ever it's a Government tender the quotes were always much higher than they need to be, and they always HAVE to have the most expensive, 'enterprise' equipment, whether they need it or not. I've never understood it myself. Governments are funded by tax money, and the people involved in these companies that love overcharging the Government pay taxes. Congratulati…
At some point people will probably need to fully fund and empower an independent audit organization staffed with the kind of detail oriented savants that will start cutting through a lot of fat.
As has been mentioned above, there are many times that people end up doing work only because they are wired to try and do it cheaply/well.
The rest of the time no one is at the helm.