Seeing that I did pre-sales for a pretty big IT company for a little while in my youth, I probably better not say anything incriminating on this subject; but really, is overcharging a bit on Government contracts really that unusual?
I've seen bids on contracts where we knew the government department was going to use Oracle as the database to keep their Oracle reps happy, and they were going with WebSphere in the middle tier to keep the IBM reps happy. Oracle didn't competitively price their database, and IBM didn't competitively price their middle-tier products because they knew it was a 'fait accompli.' Nobody was ever charged more than list price or anything, but were governments charged more than banks and insurance companies that put their vendors through much more competitive bidding processes? Of course they were, and quite frankly, it was their own, stupid, fault.
I guess the question is about just how much Oracle bilked those government agencies, or for that matter, if they did it at all. Who knows, maybe this will get interesting, and give the world an interesting, inside look at the seedy underbelly of the exciting world of writing up IT contract proposals.