I don't know this project so I will make some wild unsubstantiated guesses.
<1,000,000 rows? 10,000 active users? 100 tables? How can they spend this much, even with SAP?
I have done a project bigger than this with Oracle on HP (not known for being cheap) with 3 developers over 2 years for a lot less than $1 Million - And it worked, and it was for a *very large* public body... You could almost do it with SQLite (well, prototype it anyway).
Disclaimer: - Our users already had access to terminals, so the end-user infrastructure was already in place; but assuming that this system was web based, not much additional cost there either.