Indeed. But the letter does not say that government can never have an digital competence in-house.
“The USG is not a technology vendor nor is it a start-up. Under no circumstance should the USG attempt to become a technology vendor. The USG can never develop, support or secure products economically or at scale.”
That’s a basic point about economics (division of labour), not slur against government’s capability. I’ve not read the original report yet, but on balance I think it would be better everyone involved took the time to try an understand the points that others are actually trying to make!