Deloitte Loses $32 Million Award After KPMG Wins Fairness Suit

Deloitte & Touche LLP lost its $32 million financial services contract with the National Reconnaissance Office after a federal court called the agency’s process arbitrary and unfair to competitor KPMG LLP.

The US Court of Federal Claims blocked the NRO from following what the court referred to as an “irrational” recommendation from the Government Accountability Office to perform a second review of the companies’ proposals after one senior consultant switched firms. The decision, unsealed Wednesday, further ordered that the agency may affirm its initial award to KPMG.

The public interest favors an injunction to preserve the “integrity and ...