The first ALPR systems were deployed in the late 1970s.

Fixed camera systems were rolled out in Australia in 2005...

So.. ALPR is not new. In 2012 there were multiple systems available. 86MUSD seems like a lot to adapt existing research or existing systems. Even if that includes acquiring/maintaining several vehicles.

Maybe the whole project is being mischaracterized. Perhaps it included requirements completely unrelated the ALPR (face recognition, driver identification? don't know...).

But with the information available, 86MUSD seems like a lot.