According to that clip, the key point of failure was the project manager, who just rolled over rather than properly manage expectations. Still part of the 'government', but the hero of the piece is actually the central villain.
In any case, you're suffering from confirmation bias. Plenty of government/large corp work is more than successful, from the SR-71 to Predator drones to the Mars rovers.
In any case, you're suffering from confirmation bias. Plenty of government/large corp work is more than successful, from the SR-71 to Predator drones to the Mars rovers.