1. U.S. government buys a stake in Company X.
2. The biggest competitor for Company X is Company Y.
3. Company Y sells a product for $100. Company X sells a nearly identical product for $1,000.
4. The U.S. government buys its products from Company X at ten times the cost of its closest competitor ... because of "pragmatism," or something like that.
That would be corruption and would be prosecuted against the persons awarding such a contract. USA is in the process of policing this kind of activity now since it is rampant, often based on a small payoff to the executive/procurement officer awarding the contract.