That's part of it. Back in the mid-nineties the idea that the private sector could do government functions cheaper/better really took hold and the result is that whole core sets of responsibilities are almost completed outsourced to contractors. That in turn has made lobbyists and recently retired senior government and military employees wealthy when they join those same contractors.

However, a problem that has been around a long time is that it is difficult to fire government people for under performance so you have some people in positions of power crippling a whole host of IT efforts through their incompetence. That's not so much about money, it's just that the dead wood is hard to get rid of.