Naah, I believe in some areas like DARPA's a lot of folks still do C out of tradition only. Same as in banking they still use COBOL -- way too many existing problems and integrations are already in COBOL.
In DARPA I think a lot of control software is written in C, even though some of their controllers can even run Java.
So a large-scale effort is needed to refactor all the infrastructure.l and processes.
It is the systems-level code with UNIX heritage that is the main problem.