I don't buy it. If you can put the machine up there for $30k. If it lasts just 3 years that $10k a year.
As to software, I am sure the government has the specifications down that they want and can turn to other developers if the current developers try to jack the price up too high. It might mean that it's a few more years before they are being used in mass, but it's still a brilliant idea. And you can be sure the government isn't going to pass on it, because a couple of developers are going to get greedy.
That's one (1) UAV for $30K - $50K. A minimum of 4 are needed for 10/7 coverage of 100 square miles and then there's the communication package which involves mutipule, ground based transceivers/relays or a satellite subscription or a an aerial communication relay platform with a 10 hour endurance.
For those from Rio Linda that's about US$1M to cover two canyons for 10 hours each evening for a year.