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Wouldn’t consolidation lead to monopoly? If 50 local governments use the same SaaS/vendor, the 51st local government would likely go for the same vendor just because 50 others used that vendor before them, no? What prevents the vendor from jacking up prices or general enshittification at the stage?
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> What prevents the vendor from jacking up prices or general enshittification at the stage?

Well what I'm proposing building would be source-available and licensed such that the gov can run it themselves if it ever gets too expensive. The sub-gov entities should really band together for the negotiation though, then they can ask for whatever they want: non-profit vendors, liberal licensing, price agreements. A collective of government buyers form basically a monopsony larger than any individual vendor could ever be.

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