Yeah, his history is basically bringing in people he can trust because he can control them and then making them do what he wants to get the outcome he needs. It's a pattern across all of his companies and endeavors.
Procurement bids should be transparent and avoid the illusion of conflict. This is the complete opposite of that. It's hard to take Musk's campaign against "fraud and waste" serious when he's awarding the contracts to himself.
I think this move is a mistake, but what your describing there is just competent management.