Yes and no, the tests IIRC were conducted by the Army's research lab who happened to have developed the body armor Dragon Skin was seeking to replace.
They did design it, but they don't manufacture it, and they wouldn't have been hurt in any way if Dragon Skin had proved out to be significantly superior. It's a government D0D organization, and like most they do employ contractors as well as their actual DoD employee staff.
Typically they would have received a tasking to develop body armor with such and such requirements, "Not more then X pounds, water resistant, stop a Xmm projectile at XXXXXFPS, with a 85% or better rate of success. However they right up the requirements, that's what they design to meet or exceed. Once they have done this and the prototypes test out, a contract get's let out to produce them and companies bid for the work. The companies products also must be tested to make sure they meet the same requirements as the contract stipulates. Once the companies' products past testing then they can submit bids on the contract.
Every day, all contracts that have been awarded, for $6.5 million or greater, are posted at this website http://www.defense.gov/contracts/
I like this site cause I can find out who actually has work and not just who is trying to get work.