And when you get cost plus contracts, the incentive is to maximize costs.

With government agencies, the incentive is to spend 100% of the budget, otherwise their budget will get cut the next year.

Some years back, "Frontline" did an episode on dentist businesses. The government had a new program where they paid dentists who did dental surgery on poor people. There was a sudden drastic rise on dental surgeries on poor people, and little of it was medically justifiable. "Frontline" was shocked, shocked to see this happen. But of course, it was the obvious and inevitable result of how the government issued the payments.