Having been a part of some minor software development for government, IBM may have actually lost money on that one after they paid their lawyers, software people, security consultants, usability experts, endless meetings tying up software teams, code reviews, etc. Sure, maybe it could have been written in ten minutes by a high school student and it probably didn't work very well at the end of the day, but I shudder to think of the man-hours they had to spend before a single line of code was even written.
Or, perhaps more likely, as this was a small portion of a larger contract it was where they made a little money to cover the overhead caused by the rest of the rest of the deal. No small company could ever afford the admin costs of taking on that kind of project even if it just took their coder an hour to actually finish the app and they got $47,000 for it.