Ok, here is another realistic hypothetical: a team of 10 devs billing $500/hour, plus extra "package" fees for subject matter expert review, machine learning experts advice, senior partner reviews, focus group experiments, A/B test monitoring, regulatory compliance lawyers, all coming at extra cost. You will find that they can milk that cow legally in much more imaginative ways than your calculation.

Exactly this. At least in the US, consultancies that contract with the gov’t can keep a small full time staff in order to qualify for small-business preference and keep their overhead low, and then depend on an army of subcontractors for large projects.