I have. Worked for DND. The waste is incredible. Worst part is that the government workers actually think that they are doing a good job.
I've seen the same at DND. However, sounds like my crowd was smarter than yours in that they knew there was much waste, but since they were not decision-makers, they could only follow orders even when they could think of all kinds or more efficient ways to do their work. Some would even give advice but of course supervisors would come back to them with all kinds of lame reasons thigs had to be done in the less efficient way.