Can a Mom and Pop supplier be able to produce 10,000 up armored vehicles for the Army? How about 100,000 vests or rifles? Could a Mom and Pop outfit be able to win a contract to build a new stealth plane or a new low signature jet engine?
Some of the 'resolves' are a bit silly and not thought through. 'independent audit' we have that now and it doesn't work. Will this include the military with it's almost completely out of control spending practices? Military folks are federal workers... they fund their own medical? no pension for them at retirement?
Spreading government installations around will have the opposite effect you seek. By making sure as many states as possible have a government facility all you are doing in making sure the government never gets cut in any way- loss of jobs and money into a congress critter's district. The DoD has learned that trick and as many districts as possible have a hand in many major budget items. Minor ones as well, I read up on a company that makes a 'new' AR. They got their start making 12cm mortar fin assemblies- the entire round has parts made in over 100 congressional districts.
The concept of making all laws and programs benefit as many folks as possible is again a opposite affect deal. Instead of only targeting the poor we gave every citizen food stamps- do you think the food stamp program would EVER be curtailed?
I do believe you underestimate greed and rigging the game. If you believe this new system will only attract dedicated citizens you are mistaken... you will attract those who have failed at most everything else in the corporate world and is willing to give the government a shot. politicians will still be linked with big business interests as 'bribing to win a contract' is but one arrow in the quiver.
Oh and I doubt the Founders thought states over feds on most things, the Founders threw out a looser Confederation for a much more powerful Federal government.
What I have noticed in the rise and fall of Empires and Kingdoms- as they rise to power, spread their borders, and gain wealth the tendency is to consolidate power in a central structure. As the Empire/kingdom ages the people tend to lose their ardor, the central government devolves it's power and the regions are eventually cut loose. China had this trend, the Roman Empire as well. The Brits tried a hybrid government/native administration but just couldn't turn loose of the real power in the Raj.
Anyway this seems more an acceptance of our day in the sun is passing and drawing back into regional conclaves.