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BoM asked to explain ‘what happened here’ after cost of website redesign revealed to be $96.5m
(www.theguardian.com)
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This is why it's important that governments can shop around and negotiate as well. What the fuck do you mean it costs $78m for Accenture to redesign a website? I'll gladly do it by myself for half of that.
If the government procurement person doesn't really understand the deep technical requirements, they are likely to choose the bidder who also doesn't really understand the deep technical requirements, and is the low bidder because they don't realize what they are getting themselves into.
By the time everyone realizes how much more is really required, they are already halfway through the project. The government could have saved money by choosing a more realistic higher bidder to start with. But once they have half a program from the low bidder, throwing that away and starting over doesn't save any money. Better to just finish with the team that's invested with the project.