As with everything else in U.S. society, the "little guys" who attempt to game the system or, worse, make simple mistakes, get a ton of bricks dropped on them, while the fat cats who used connections in Congress to ensure appropriations passed for expensive systems, or who ensured that a competitive bid process wasn't, or who benefit from inflating costs so that more House Reps benefit from money being spent in their districts, suffer from no oversight whatsoever.
Everything I was talking about was with Lockheed, NG or Boeing. They have a shit ton of oversight. That 95 person program was one of Lockheed's. I really don't know where you're getting your information.
I want to be clear, I am not defending the big guys, there have been some contemptible crap, but they have very little opportunity to get away with much and I much more interested in what's really happening, good or bad, than some meme about the entire industry is corrupt and out to fleece the American public. For every story you read about a failed program, there are successful ones. The lions share of the ones in the press as too expensive, or contractor incompetence are simply due to the broken acquisition process. Program financials and execution are held at the program level, and that means middle management except for really, really large programs. Executives, at least at some of the biggest defense companies I have worked with/for don't have the ability/authority to screw around with overcharging the customer or lying about the product.
#1 cause of failed/overrun projects is again - the acquisition process
#2 is customer scope creep and no grasp of the technical challenges
#3 is poor contractor program management
somewhere further down the list is screwing over the public, cheating, lying, overcharging, etc. Do not get me wrong - it happens, but it is far rarely than everyone not in the industry thinks.
"Why is General Dynamics charging the gov $10K for a hammer?" - well because the customer mandating meetings (i.e. labor costs) and reports costing $500K in labor. Then they mandated full MIL-STD-810 testing that costs a fortune in labor and lab costs (well not so much for something as small as a hammer, but it still costs a ton). So delivering ONE hammer ended up costing $10Million so they have to sell 10,000 hammers to get the cost DOWN to $10K each. If the DoD wants a $20 hammer, then they should buy AS-IS from a wholesaler/distributor.