OK!
Now here is a thread in which I can adequately express both compassion AND rage at the same time!
Anyway...
Why do people/companies feel that they can rip the military off?
Because it's such an incredibly entrenched bureaucratic system that there's little fear of timely, adequate sanctions against contractors who do things like this.
Hell, I'd bet that if contractor served broiled Iraqi Insurgent to troops for lunch it would take years for them to be brought to task over it.
Ripping off the government/troops is practically a spectator sport in the United States. Some of the incredible ripsoffs that took place during the Civil War were breathtaking.
During the Spanish-American War Armour Meat Packing supplied thousands of pounds of meat to the troops, much of it rotted, resulting in thousands of cases of food poisoning. IIRC Armour was providing the military with meat from cattle that died in transport, sick cattle, etc., stuff that no self-respecting individual would ever consider eating.