650k would include some significant third party deals I'd imagine - while the level of corporate support available in Canberra is nowhere near that of Sydney, Melbourne and Brisbane, they've shown in the past that if the player's good enough, they'll come to the party.
It may seem like a lot for a player who has realistically achieved very little, but you only have to listen to the praise he gets from rep camps to see that it's worth every dollar.
Dugan is someone other players want to play with. His re-signing will keep other players at the club, or attract others who may not have bothered considering an offer from Canberra otherwise.
Most of all though, it was something the Raideemrs had to do to show that they're still going to be competitive in the future. We've always been more a club that produces its own players rather than makes marquee signings. If we couldn't sign big name players, and couldn't keep the marquee players we develop, then we'd be destined to be a bottom half club for a very long time.
So yeah, it's a lot of money, but in my opinion it's money well spent.