How does the US Government reward companies that fail miserably? The same way the rest of corporate America does. CEOs of US companies are notorious for getting huge severance packages after being sacked for doing a bad job. Not much of an incentive to do a good one.
Now Choicepoint (you know, the folks who gather all kinds of error-prone data on you), are getting some of the same. After getting a bunch of their data hoisted, and that leading to a pack of identity thefts, Choicepoint has been rewarded for their screwup with an Internal Revenue Service contract.
It gets better..
Now, Choicepoint is reaping further benefits of their leaking sieve, and from an unlikely place. Although California took the lead in forcing companies to notify consumers of data theft breaches, they too now think Choicepoint has its act straight (or something like that). The state has awarded Choicepoint a contract to develop computer systems to track criminals.
Now everyone in California is going to wind up with a criminal record, the IRS is going to tell everyone they own more money, and the only people that will be able to access that information are the real crooks.