Did the State of NY Overpay by about 3 Mio US-$ on a 3.45 Mio contract?

Below is an article which tells the story of a  company agreeing to perform work in state for the state of NY, it gets caught outsourcing the work to India and then agrees to pay a 3.1 Mio US-$ fine.  The contract called for the work to be done in state. The material handled was deemed confidential (fingerprints and personal data) and  the work was to be performed by employees who had passed background checks (the Indian contractors of course did not have it).  The total original contract value was about 3.45 Mio US-$.  It is a pretty straight forward breach of contract issue...the company violated certain stipulations and paid the price for it.

What is really interesting though is what the inner workings of the deal disclose. The contract company was able to get about one third of the original contract done in India for about 85 k (!). As such the company netted more than a Million of the 3.45 Mio contract on just one third of the contract it outsourced. If the entire contract would have been outsourced (at a cost of then roughly 240 k) the state of NY would have been able to save more than 3 (!) Mio US-$.

An Interesting Article As To How The State Of NY Might Have Spent 3 Mio More Than It Needed...