Earlier quoted context omitted.
There's a difference between the government paying to use software and paying for it to be developed.
Most of what the big contractors like Booz do is custom software. Every single cloud provider has an entire GovCloud division. Even Office has special Government licensing that behaves differently on the backend.
Say I'm vulture capitalist Tom, and I pay a few gajillion dollars to developer Gupta to create a product for me. I would be understandably pissed if Gupta turned around and sold that same product to competitor vc Janet. She didn't pay for that dev work, I did.