They absolutely do. I have friends working as private sector IT consultants with federal agencies as one of their clients. These projects lock them into idiotic bureaucratic processes and extensive internal politics (more than in private sector). You can help improve quite a bit but it's like moving a plowing truck through pure molasses instead of snow.

The teams are often led by government officials who will do everything to keep things as they are to protect their position, of course with little to no repercussions.