There’s certainly truth to that, but when you add in all the requirements for those approved sensors (supply chain, certification, utilization of American workers, etc, etc) they may be that expensive to produce.
Then your government client may cancel the deal and you’re left with a warehouse full of $200 parts that should cost $5 that no one else wants.
For the big companies that get their hooks into military and civilian leadership, they’re on the gravy train. But even then, that is on average, many of those projects will likely be big losses.