Vendors screamed. Loudly. Loudly enough that the evaluation process was moved out of NSA and weakened. It was outsourced to approved commercial labs, and the vendor could keep trying over and over until they passed the test, or wore down the red team. Standards were weakened. There were vendor demand that the highest security levels (including verification down to the hardware level) not even be listed, because they made vendors look bad.
A few systems did pass the NSA tests, but they were obscure and mostly from minor vendors. Honeywell and Prime managed to get systems approved. (It was, for a long time, a joke that the Pentagon's MULTICS system had the budgets of all three services, isolated well enough that they couldn't see each other's budget, but the office of the Secretary of Defense could see all of them.)
What really killed this was that in 1980, DoD was the dominant buyer of computers, and by 1990, the industry was way beyond that.