IMO: Taking that much money from government should be considered a very literal hanging offense.
You are assuming that the government had nothing to do with this failure. Software development by committee never ends well.
It's not too uncommon for government projects to have every bureaucrat in the mix trying to get their grubby little paws on it and make it how "they want". I can't even imagine trying to write software and having, literally, thousands of "bosses" giving you contradictory or impossible requirements. Add in lowest-bidder and you start to understand why every government software service you've ever used sucks at least a little bit.