Unfortunately if one analysis the fed contracts it will be evident that nexus exists between the private and govt . This cloud theory too has much of the private hand in it. Before cloud computing vision was formed there existed IT Optimization, it had similar vision like in Cloud. But then Google, Amazon, Web 2.0 all these began to drive government decisions, that in future will eventually make IT vendors more profitable.
Just by ensuring mere ethics, fair-play will allow people to work in the Fed with motivation those are objective. Certainly like in the past govt has been place for much creativity and innovation as mentioned by others. Despite the fact that destructive creation has some merits, such ideas have to be explored in the larger scope of socio-economic sustains, and not technological progress alone.
Of the figures that I gave before, only about $9 Billion or so of $76 Billion can be used for any real optimization and even cloud computing. In $30 Billion, %60 is the human labor cost 🙂