Exactly. Governments and large multinationals don’t like relying on a single supplier for anything because a single supplier is a single point of failure. No matter how good a new option is, they’ll keep the old option on life support until they have a third option.
I dare say it has little to do with having a third option (since SLS is still years away from being an option) and more to do with pork barrel politics.
Oh, I'm sure that's also a major factor. I just meant that we shouldn't expect the U.S. government to 'pick a winner' and cancel SLS even if they're competing head to head and it's clear SpaceX is blowing SLS out of the water.
With the ungodly amount of money spent on SLS they could support and build multible large rockets easly. The SLS is the single point of failure you should try to avoid.