NASA has cancelled the space suit contract it signed in June.

The contract could have been worth up to $745 million for the company Oceaneering International.

A statement issued by the space agency on Friday says, “NASA determined that a compliance issue requires the termination of the contract for the Constellation Space Suit System with Oceaneering International, Inc. of Houston for the convenience of the government.”

According to a letter NASA sent to US federal watchdog the Government Accountability Office it had failed to ask for a “cost accounting standards disclosure statement” from Oceaneering (Reuters, Wall Street Journal). The WSJ says the office was already considering a complaint from rival firm Hamilton Sundstrand over the award of the contract to Oceaneering.

Oceaneering told the Courant:

We respect the government’s…procurement and selection process, and we are confident that the result will remain the same. We continue to believe our team offered an innovative and comprehensive solution to develop and produce the next spacesuit for NASA.

Both Hamilton and Oceaneering have been asked to bid again for the contract (Houston Chronicle).

Image: NASA design for new space suit / NASA