Let me get this straight.
So the contractor basically explained to the government what the government wanted, then put a nice price on it, and now they've sealed the deal?
On another note, I don't know what they've been cooking up but it sounds a bit like they're creating a paradise for "unauthorised access" on top of making unbridled "legal" data sharing so easy that any privacy constraints are left to the imagination of the ICO. As long as nobody looks it's all right, no?
Vondervul, Vondervul. And ze next trick....