Having once been in the position of bidder for services (in another state) on federal, state, county, and city levels, I would say that that is mostly true (acknowledging some exceptions, as in minority-owned, native-american-owned, and women-owned businesses), but only when comparing apples to apples.  A bid to repave and a bid to chip seal would not compete together.  Chip-sealing is, it seems to me, a low-quality alternative.  Yes, you get what you pay for.