It's a fine sentiment. Tor is another good example of innovation ran by the (US) Navy. Which is to be expected, as navies traditionally were big into crypto.

The military has long history of both doing their own research (logistics & management, and cryptography being good examples), running research institutes with civilian employees (as it seems to be in this case), and contracting out R&D to run-of-the-mill civilian institutions (half of the SV on a good day).

It's worth remembering that the military in typical country is set up with certain similarities to free market economy: it negotiates budget with the "customer" (government), it has several major branches that fiercely compete with each other (typically air force, army, navy; US also rolls with marines as a separate branch), and there are vertical & lateral transfers of employees at times. Lastly, there's always the competing militaris abroad ;-)

Heck, one of common view of the Cold War is that of NATO bankrupting the Soviet block via military arms race.