They want hardware, too, so you have to pay more than an opportunity cost up front. They mention that the winner will get to work with a manufacturer to produce

They want hardware, too, so you have to pay more than an opportunity cost up front. They mention that the winner will get to work with a manufacturer to produce more prototypes, but it's hard to put a monetary value on that without more details. Seriously, anyone with the expertise and desire to do this sort of thing on their own is already doing it and getting paid more than $100k to do so.