In practice it would be 10 managers and in-between contractor types siphoning all allotted money and then an unexperienced dev building a terrible overburdened service that noone wants to use.

depends on the country. this type of corruption is guaranteed in some countries, less so in others. Singapore is usually good at avoiding it. Their online services are very good.

the government can switch up the incentives and for example make payment contingent on people actually using the platform as well as opening the tender to startup teams (usually they are locked out).