It was a competitive bidding process, no? I don't mean to suggest there aren't huge problems with the army's acquisition process, but it seems no one wanted to make them for less.
I think a lot of what stifles competition is the military itself. They aren't a good customer. They have lots of broken legacy systems. There are serious reputational risks.
I don't really mean to suggest 22b is too low a cash prize, but I imagine it takes a lot to overcome the barriers that have been wilfully erected. Much less the ones discreetly erected by incumbent military contractors.