Reading this statement, DEFCON's, and Reddit: it looks like the lowest bidder was a hired to do a complicated and costly project that the client historically underfunded (paper badges last year).

If it's true that DEFCON wanted dirt cheap badges produced in record time, then I think the fault lies not in the project's management & execution but in the client's expectations & resourcing. No accomplished vendor would accept such a low price point, so that just leaves the unaccomplished. Vendors who overpromise and underdeliver, who would accept payment in terms of "clout", or who would be too afraid to pushback on crazy or high pressure expectations until it's too late.

A classic set-up-to-fail situation.