It's what you get in a market economy. Sorry, but outsourcing is cheaper and the cheaper product will win over the better product 99 times out of 100. Especially when it comes to government, where they're legally obliged to go with the cheapest bid.
That's just the way the country is set up. Anyone with a brain would tell you that outsourcing even across State lines, never mind international boundaries, carries political risk. The nation decided, rightly or wrongly, that saving money was more important. If the roll of the dice is against you, well, too bad. That happens.
It also carries geological risks. Putting all the chip factories in one earthquake-prone zone in Asia - and, indeed, along the same bloody faultline, was a marvelous piece of risk management. Penny wise, pound foolish, as us Brits usually say. After the fact and rarely before.
That brings me to the related point of putting vital infrastructure in dangerous locations.
Silicon Valley (a highly polluted zone that exports contaminated water at vast expense to places that dump the water back into Silicon Valley's water sources) is a remarkable piece of stupidity, being as it is, situated on one fault line and close enough to another. Silicon Forest (Oregon/Washington State) has taken up some of the IT load, but given that the locations are still on the Ring of Fire and thus still in dangerously unstable territory, the industry has successfully doubled the chances of catastrophe.
Most of the design engineers not located in these places are in India (a nice, stable location with no deadly diseases rampaging through the countryside and no risk of religious civil war or war with any neighbouring country), Israel (ditto except for the disease AFAIK), China (great choice, no problems there!) and Jaan (not the least bit likely to get into a conflict with neighbours, have power stations explode, suffer earthquakes or tsunamis, or lunatic politicians hell-bent on causing a crisis).