"...but I have a hard time dealing with a software solution where one of its benefits is to allow inter-govermental agency sharing of information, Data Fusion Centers,and outsourcing?"

Maybe you should look at this from a complete different angle:

It's not about outsourcing the solutions for the customres, but developing the software outsourced!

My guess would be that Baroni could have come to the conclusion the costs of software development were/are too high (which isn't very difficult to come up with by looking at PDSG's burn rate), hence it would be reasonable to let some/most of the job do in other countries.

We have the same here in Germany: A lot of german software companies have subsidaries in the former soviet countries, where wages are still ridiculous low compared to Germany. I know some companies, who have 50 people in Germany, but 100-200 developer in Slovakia, Bulgaria etc.

GLTY