The "public" institution didn't mind going sole source for the C17 (Great example I think) or the F18F(Undecided here) , and wasn't the competition non-existent for the F35 decision.
I have no issue with sole source as long as there is some form of oversight, independent or government, and most importantly the right equipment ends up in the right hands.
When dealing with the FMS do they simply act as sales agent, or do they act on behalf of the supplier in negations?