I worked for the state and had to participate in procurement. Not only did they do this, but when we were purchasing commonly available things, we purchased them from weird insider vendors whose catalogs were literally photocopies of other catalogs with the prices blacked out.
When I left, people were advising me to become a vendor, which was what a lot of people did as a retirement plan. You'd go to the secret portal and fill out the inscrutable forms, then give them to someone who you probably knew at the special time. Then the state would order things from you, and you would simply order them from Amazon or Uline or whatever. There was also a trade in minority and female figureheads (to white male businesses) to get you prioritized.