MORI Associates challenged the National Institute of Diabetes and Digestive and Kidney Diseases (NIDDK) for canceling an IT services contract after MORI won the bid protest. The court ruled the cancellation was arbitrary and capricious because the agency failed to follow proper cost comparison rules under federal procurement guidelines. The court ordered the agency to stop the cancellation and awarded MORI a permanent injunction. This matters to subcontractors because it protects your right to challenge unfair contract cancellations and ensures agencies must follow proper procedures even after awarding contracts.
If a government agency cancels a contract you won after you protested, you can sue in federal court—the agency must have a rational, documented reason