If open source advocates banded together and "sold" this story to local governments, there would never be these kinds of boondoggles. I'm reminded of the same thing that happened in Oregon. Oracle came in with a low ball price, then extracted hundreds of millions of dollars out of the state for a POS health care system. https://www.oregonlive.com/politics/2016/09/post_183.html
Is open source really a place you would find what I imagine is an enterprise 'do everything' education related IT application? I like the idea but that's not a product I think open source folks ventures to build much?
There's nothing preventing a group from making a FOSS replacement of a government project made commercially, even if its goals aren't ideal.