Sounds like he’s talking about defense contractors. Many contracting firms just need “butts in seats” that they can bill out. Mediocre developers are better in some regards there: they bill out more hours since they’re slower, don’t mind 10+ year obsolete tech, and they don’t complain as much, which could endanger relations with the bureaucracy (customer.)
Often "approved" by people who have very little idea about what they actually need in a hire. And even they're measured on how well they can keep things staffed and they're often requesting requirements for roles that are unreasonable or downright ridiculous at the pay rates they expect. So they end up with people who are good at formally ticking the right boxes, but have no Godly idea about how to enable the mission or be aware of the broader purpose behind the tasks set out for them.
It depends heavily on your COR and government leads, but the good ones are few enough that they don't get to send the norm. There are enough people who are sufficiently checked out that contracting/staffing firms can get away with murder. Indeed, it might just be impossible for them to do a good job based on what sorts of requirements they're expected to adhere to.
I worked at a defense contractor for years. Some of the guys I knew could barely program, despite years of experience, but looked good on paper. Approving them individually doesn't mean that they're not a "butt in seat" kinda person.