for the US Army there is PM CHESS and if you have a CAC you can access the purchase list. I have looked items up such as monitors, etc, and the price is not bad at all. Is it the lowest? No, but they are also paying for a guaranteed delivery date. That being said, the prices are competitive to big box stores askin to what we would pay as private citizens.
Same with typical IT/IS/telephoney services. The Government can look at the commercial sector and see the rates and they have a baseline. There is some additional cost to do work with the government so that is factored in, but, trust me its very slight.
So... what happens? What makes it cost soo much? I'll do my best to idenfity what I have found.
1) Unqualified people making poor decisions. I see this a whole lot. Someone will get a GS job due to prior military service (as an officer) and have no real PM experience in the technology they are actually dealing with. There is a difference between managing a military division and a product or service that is IT in nature. But, these people find their way in and make horrible decisions. Spend a lo of money on funding prototypes or owrking models amongst various companies. It can just spiral down from there.
2) PM's not famaliar with the technology or services required. I have seen GS's sign off on someone pulling 50 feet of 50 pair CAT3 cable for ISDN for $5k. No, really. This usually happens because the guy/company that did this knows that the GS guy has no clue and he has every economic incentive to "go for it". Even if they GS does find out, he/she will be more concerned about their career than reporting this mistake.
3) Poor requirements analysis as well as poor alternative sources of COTS equipment. This kinda related to unqualified people doing the job. It's difficult to work with the GSs like I do. I mean, there are a lot of times where we are stunned as the GS guy wipes the table off of all the hard work we did coming up with an agnostic specification for a particular product or service they want. We make it agnostic so that we can have as many companies bid on it for them. But, no. They'll wipe that clean and then arbitrarily choose something for whatever reason and then they get fleeced. Not only that, the month of work by a team of four people has still been paid for and that effort was entirely unrealized.
4) No concept of how the money is spent. This is like #3 above. Just wiping out a lot of work over something petty. I have seen high-level GS's summarily reject a deliverable and demand that it gets redone. What they don't realize is that without going through the official process of refusing delivery of a product (or whatever) they are still paying the same people to do the job again. This happens a lot more than it should.
5) Trusting the wrong people. Those GS's might be trusting the wrong GS (who is inept) or rely on the input from a matrix position contractor. I had an issue when I was in the Navy over air pressure sensors. The Navy price was $4k but I could find them for $10 in quantities of 100 from the manufacturer itself. As the port engineer worked for the same company as the manufacturer of the equipment that was to recieve the sensor it went no where. I tried to push it but I just got in trouble, why?
6) Afraid to admit to a mistake. No really, we are all human. We make the best decision with the information we have been provided with at the time, usually we try and do this. But, sometimes a factor was not accounted for or simply put a bad decision was made. They'll just keep going. There is such a desire to be the perfect boy scout that no one will admit it when they drop the ball. And, this can get really bad when they are all doing it. They all know it and silently acknowledge it but they just keep truckin' along because it's not "their" money.