Software needs to be updated and maintained and you never know when you start writing it what the real requirements are. If I were a taxpayer in this state I’d be angry that my money would be going to a series of middlemen (e.g. a procurement consultant, program manager on the gov side, a contractor manager, the contracting company’s cut) rather than some state employed software developer.
I also find the government "requirements" process tends to create situations like this. Rather than build flexible software that puts some degree of trust in the person using it, they tend to overspecify the current bureaucratic process. In many cases, the person pushing for the software is looking to use software to enforce bureaucratic control that they have been unable to otherwise exercise, with the effect of the people the project initiator wants to use the software simply working around it. They then institute all sorts of punishments and controls to insure it must be used. This then results in the kind of insane situation we have here, where you can't do something perfectly legal because "computer says no".
It gets complicated but there are some simple rules to follow. If you are running a non-competitive RFP then that might be okay because you are running a competitive RFP and so you get these opportunities to leverage your competitors, use one of the other competitive RFP rules for other projects, to use your competitor's RFP, etc. but you need to make sure the RFP you are running only does what the competition isn't allowed to do.
This. The job itself is terrible and as you mention the pay is terrible too. With conditions like that, I'm not surprised the product is buggy, over-budget, and difficult to improve.
"Salaries at USDS vary, but don’t exceed $170,800, determined by your experience and skills." So, they do have a relatively low top salary, but it is very difficult to do any salary for the government based on skills versus age (disguised as years of experience). At best you might find adjustments for degrees earned, which don't translate well to actual value.
Sure, it sounds like a public-sector employee gives better value but if you want to produce commercial quality then you still need management, consultancy and high quality HR with competitive salaries, otherwise you usually get mediocre developers with mediocre results.
Sometimes it really is better to pay a premium on the "day rate" to get something more quickly and to a higher standard. You also often have access to better support and maintenance.
You pays your money and takes your choice.
Are you willing to pay market rates to retain that developer? Or deal with the constant churn as people stay long enough to pad their resume before moving along to the next job?