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Let's be real here, there is no $1500 toilet seat (ok, maybe on the Space station). The reason it seems like the government pays so much for things is because of how they are accounted for.. i.e. accounting for all the time/costs to procure and place the item... from the guy who is putting out the bid to the guy who is installing the seat, plus a lot of other overhead. Same reason why an aspirin costs way more in a hospital than in a store. Back in B-school one of my accounting profs used the "classic case" of the government hammer as an example to walk through cost accounting.
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