Ah, yes, I see where you're going. Where I jumped to in my conclusion however was researching the CEP
article on EVElopedia. To quote directly:
The Panel's primary purposes are to determine the budgets for the State's few government agencies, such as the Navy and the Tribunal .....
To answer back to your original comment - about how a military corporation could interact with its customers - going off-the-cuff it would probably depend largely on internal politics both at the State- and internal corporation-level. Assuming for a moment that the CN is a standalone entity which reports to the CEP and is thus considered a extension of State policy, obviously military personnel would have to defer to the wishes of the eight megacorporations.
That being said though, this raises an interesting political perspective which underscores my earlier comparison to the military of Turkey about a decade ago (now I wish I hadn't removed that post). In most Western societies, politics and military don't mix. I know in the U.S. Navy we receive yearly messages reminding us that appearing in uniform at political events is a major taboo. But Turkey, with its Western-trained military, about a decade ago enjoyed a state of internal affairs where their military was seen as the "ultimate arbiter and defender of the state" and was able to influence internal affairs simply by virtue of its existence.
Could such a similar situation exist here? The similarities are noticeable. Both the Turkish military and the CN receive their budgets from the State, but enjoy such a relationship where they are permitted great autonomy in the conduct of their operations. (Turkey because of the state-military relationship, the CN because of how the Caldari State is structured.) Granted, they may be called upon to execute certain operations deemed necessary for security and all that, but for the most part they would probably be left alone.
The other possibility I can think of, is that contrary to the assumed position of the CN being small by virtue of necessity it has been
deliberately kept small. It wouldn't be in the interests of the eight megacorporations to have an unchecked "ninth party" on the field with the ability to encroach upon and influence their operations. And since they control the purse strings via the Chief Executive Panel ... it stands to reason that they would use it to influence naval acquisitions and purchases, at the very least.