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Yes this is a great point. The great irony of the tech sector is that although tech creates efficiencies, the process by which tech is created is itself comically inefficient.
Almost nobody, especially those working for government actually looks at a complex, expensive solution and says "We should simplify this and make it cheaper." The government is paying for a LOT of unnecessary complexity. I would say that's most of the cost of essentially every tech project the government funds.
Reminds me of that 3-section meme about Starlink boosters showing how they simplified the design over time. This is the exception which proves the rule.