I mean how many military equipment companies can you sustain with a country the size of California? Whatever your answer, above a certain pay grade, all employees come from a single engineering school anyways.
If you’ve ever looked into military procurement, there are a number of MIL standards and a specific list of requirements. If the product meets specifications and testing results, picking anyone but the lowest bidder accounting for other “soft” commercial aspects such as company stability, leadership, and book health; would be foolish and irresponsible.
I’ve seen several comments here that “military” grade means lowest bidder. That’s optimal.
Look at it this way - consumer market is completely unregulated, no specifications and lots misleading terminology. Any Military would crucify you for fraud.
Is it perfect? No. Is it close to perfection? Yes. Also look into medical grade things such as scissors.
The right term is “optimal”.