Wouldn't it make more sense for the to just host at SuperNAP in Las Vegas? The place already has a shit load of government contracts and has armed security patrolling it.
Make sense? Possibly - to you and me. To everyone else - no.
Think about it this way - let's say you are some mid-to high level executive in whatever the hell branch of government owns this. You put the project out to bids with what you THINK the requirements are. Keep in mind you have probably never built one website.
You get the bids. One of them looks fantastic, and also happens to be the most expensive one. You take this bid and portray it to upper management as the "best" bid. You get this project approved. You now have an additional 18 MM in budget to throw around.
There is literally zero incentive to come in under budget or reduce costs.
I can't tell you how many times I've seen it. I saw one site built for internal use that cost $4,000,000. All this system did was allow employees to start their retirement process. It was stupid data entry forms (and not many of them) and it was "highly secured" which was one of the project requirements. How was it secured? HTTPS + nothing else. No data encryption in the database, very wide access to the system, etc. You could have built the thing in PHP or any other standard language for pennies on the dollar.
I could go on but I will stop.