Can I notify both contractors that their quotes were found technically unacceptable and re-open the RFQ?
This response is based on the information provided. We suggest you discuss with your contracting team, program manager and/or legal department as appropriate.
The appropriate approach is to notify all contractors the government canceled the solicitation as it did not receive a quote meeting its technical requirements. Before resoliciting, review what/why packages were not adequate. Determine why contractors were/are unable to meet requirements through conversations with industry. Update, adjust inadequacies in the government package, change portions that or not performable.