... SpaceX will become very, very expensive when required to comply with govt contracting law
Actually ULA will become much more expensive as they will have to include fixed costs (infrastructure, etc) into their launch pricing. Currently they do not. They seem to have a separate contract purely for infrastructure and other related fixed costs, this contract is separate from launch contracts. Short story: ULA launch contracts don't have to include such costs since they are paid for elsewhere, SpaceX launch contracts includes all such costs and they are still far less expensive.
The USAF got caught cheating to hop on the Musk bandwagon, and the consequences will be very, very expensive.
I think recent news stories demonstrated the opposite, the USAF overstepped its bounds and began dictating design changes and corporate reorganizations.