Why is there a contest? If someone has an idea let them branch the code and implement it. The company can then decide which of the two branches to use and the developers will work harder to win. The real problem is this system is not compatible with the jobs of non-engineering managers. What are they supposed to do in a free market system where developers are making decisions? For their jobs to be viable, an authoritarian system has to be set up. One developer has to be told 'don't do that, we're going with Bob's way.' That's not an environment for innovation. All this accomplishes is now a highly paid developer has no reason to work hard at all, and they sure as hell don't give a shit about Bob's stupid ideas.
As for bosses building a bridge, its ALWAYS going to be "why the hell didn't you engineers know about or implement MIL-STD-2341" not "here's your MIL-STD-2341 reference books and a few contacts for you to get started."