I have been tasked with providing my client, a government entity, with what a traditional internal test department looks like vs what an IV&V department looks like. My company provides software development for the government and they have hired another contractor to perform IV&V. I am the manager of our QA department and frankly cannot find "standards" on this subject.
True the government likes to spend money, hey it's their job! And it was first used by the government and in many cases still is. But actually it is a cost savings method, (not having full-time employees) to insure that the V & V is performed in an unbiased, non-political atmosphere. The only thing they can't remove is the paper trail of the money itself. But their take is that if the developers and testers are funded by the same company under the same roof, there is an opportunity for a developer to slip a few pesos to a tester to insure his code looks good and thus he will get a promotion or pay raise. I know you say it sounds silly, but it has happened with many of the large aerospace contractors for the government and still is. If in doubt, take a look at whose contracted to do the work in Iraq.
Success is the ability to go from one failure to another with no loss of enthusiasm.
~ Winston Churchill ~