This is definitely hacker-bait. Cue up all the folks complaining about wasteful government, then cue up the hotshot programmer folks who will tell us they can code this in 2 hours while drunk, then cue up the FOIA folks, then the folks who feel any critique at all of government is indicative of right-wing extremism, and so on.
I remember when the IRS spent 4 Billion on a new computer system and had nothing to show for it. The joke I used for a week was "Hell, they could have paid me $2 Billion and still not had anything to show for it -- and saved half their money."
The problem those of us with lots of internal government experience is that most "normal" folks have literally no idea how much waste there is. Yes, it's like a big university. Yes, it's like BigCorp. But no, it's so far beyond those concepts that if that's the only frame of reference you have, you've missed it.
I love my country and love paying taxes for it to do useful things. But there simply is no system in place for shutting things down. It just keeps growing. In the private sector the measurement is "does it do something that folks will pay us for?" because if it doesn't, folks eventually stop paying, and the company goes away (although it might take decades). In the public sector the metric is "does it make a politician look bad?"
There's a reason Congress delegates all these powers to all these agencies. It's the same reason we have so many "Tsars". Nobody is directly accountable. It's all set up so that if there is a problem, some poor schmuck gets hauled before an investigative committee to get the riot act read to them. That way the guys who are supposed to be really responsible -- the Congressmen -- get to play the part of the person looking to fix things. Politics. It's a beautiful thing.
So at the end of the day I'm not really sure this is newsworthy. I could tell similar stories involving tens of millions of dollars, and I bet we could come up with a list of hundreds of these things. Anybody remember the FBI case file system? This is just way small peanuts. Perhaps the "Android app" part of it is enough to be newsworthy, but in my mind that's a benefit: today there are a lot of people pleading to move away from COBOL systems in some government agency -- and losing. I feel really sorry for those guys.