I was recently wondering why something of this nature hasn't happened long ago. Governments have to be spending so much money on licensing fees. It seems like you could throw a fraction of that money at open source software, actually make it good and then not be beholden to corporations like Microsoft or Google. Combine this sort push between multiple governments and the world gets good (at least relatively) software…
As much as I love OSS I don't think throwing money at it is what's going to make it rival large closed-source software projects. You need clear direction and goals which won't happen when building by committee.