Because of the existence of [1] FedRAMP and other compliance initiatives that are blanket applied to everything even though 90% of SaaS contracts do NOT need it

Because of the existence of [1] FedRAMP and other compliance initiatives that are blanket applied to everything even though 90% of SaaS contracts do NOT need it, and [2] past performance being predominantly the #1 factor for evaluation, contracting itself is an enforced oligopoly. You need to be a big-ish company to enter, and will have to kiss the feet of existing oligarchs.