You realize the fat on these contracts are because of the bureaucracy and regulatory requirements levied in response to the outrage over the "$100 hammer"?
You should do some reading on Earned Value Management Systems and the financial reporting requirements associated with it. I have some Gov't contracts that require it and others that don't. The ones that require it, I tack on at a minimum 300% of the required Program Management (The most expensive resources in our company when compared to Engineering and Field Support) support necessary to follow the contract than that of the ones who don't. The worst part is that it's required to follow these completely ambiguous "guidelines" (because they are open to interpretation from the various DCMA and DCAA representatives, it's not that I'm fleecing the customer. Its a neverending moving of goalposts. You want Gov't contracts to cost less? Get the Gov't out of the process.
You want a satirical yet extremely realistic look into the world of defense spending? Watch the movie "Pentagon Wars" with Cary Elwes, Kelsey Grammer, and the guy from Scrubs. The early scenes where they are going through the different Engineering revisions and how it comes up is so spot on. It will also give a very realistic look into the dysfunction of a Program Office. Much of my disdain for Gov't is beyond my experience in the DMV and more with the Fed bureaucracy. I always say that Private industry can do it cheaper, faster, and better, however, with all of the regulations, they've ground us into the same immovable mass of **** they became.