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Having worked in the Defense contracting community for decades my bet is on the DOD/Govt insisting on absurd requirements for what may seem as simple commercial items, which drives the contractor to cover this in the price. If the CO is not conducting a proper cost/price analysis to determine that he is getting a “fair value” then he should be disciplined. I witness about 75% of contracts that were required to be changed by the CO for stupid reasons and the contractor has no option but to implement the change through the FAR “Changes” clause. If the contractor does not have a reasonable system of tracking these changes and submitting cost/price change proposals to the CO then they “eat it”. Contracting with the monopolistic USG is not all it is cracked up to be, particularly in complex acquisitions.

And it is far worse the further down the subcontractor chain you find yourself.

Indeed you are correct. Thank you for providing insight.
Too many just jump on the issue and never take the time to learn the system and why it is broken and why it results in inflated prices.

I have a small manufacturing company and produce aircraft parts. Aircraft parts are already expensive for commercial and general aviation with their requirement. A part I can literally make in 10 minutes will require 10 hours of paperwork and documentation. Add another 5 for packaging. I got my first military contract 3 years ago. That same 10 minute part can take 20 to 30 hours just to get out the door. I have to cover that cost. So when peopl wonder why a simple gear would cost so much don’t get too angry too quick.