That's...actually not bad.
Considering how most titles today can double, triple, or even quadruple that much in a single 3-year development cycle (and how many other military line-items are numbered in the billions).
If anything, I think the games industry can learn from this.
-edit-
I somehow think that everyone bitching about how their taxpayer money is being 'wasted' by this hasn't the slightest clue as the actual scale of money the government, particularly the military deals with.
$3.3 Million a year toward a successful recruiting tool is nothing. It's not even a drop in the bucket. The army alone spent $216 Million just in the year 2005 [http://www.csmonitor.com/2007/0412/p02s01-usmi.html]. For 2010, the Army is making a total budget request of 141 Billion. [http://www.army.mil/-newsreleases/2009/05/07/20735-the-armys-budget-request---fiscal-2010/]
So that's...what? 1.5% of 2% of the budget of a single branch of the armed forces? To be spent on something that's FAR more effective than pretty much every other single thing that $216M recruiting budget is going towards? I'd call that a resounding success.