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.