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Ok, here is another realistic hypothetical: a team of 10 devs billing $500/hour, plus extra "package" fees for subject matter expert review, machine learning experts advice, senior partner reviews, focus group experiments, A/B test monitoring, regulatory compliance lawyers, all coming at extra cost. You will find that they can milk that cow legally in much more imaginative ways than your calculation.

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Exactly this. At least in the US, consultancies that contract with the gov’t can keep a small full time staff in order to qualify for small-business preference and keep their overhead low, and then depend on an army of subcontractors for large projects.

Usually there are hard limits around doing 51% of the work yourself, so you can only sub out half of it.

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