Contractor scams $20.5M from the Pentagon

We used to joke about this sort of thing in the navy.

We could wrap a box in tin foil, fill it with parts, put some blinking LEDs, and wires sticking out here and there and sell it to the DOD for thousands of dollars.  Then when they realize it doesn’t work, offer to “upgrade” it for another hundred grand.  We figured you could probably get away with it for a few upgrades before something better came along, or they decided it was no longer needed.

“It is a troubling case because the fraud took place during a time of war,” said Kevin McDonald

I suppose in the end we could view this as a case against both federal administration and private enterprise?
What are we left with then?