If Pete Hegseth, who is albeit highly incompetent, decides that Anthropic's values don't match with those of the DoD, isn't that entirely his call to make? Unless there's very specific circumstances at play, Hegseth is at least a public official, and gets to decide to do what he thinks is best for the public. Although he is wrong and Anthropic is right, no judge should force the government to use Anthropic products.
Does anybody have the legal analysis? I'm (clearly) not a lawyer, but I'm more interested for now in the question of whether this is allowed rather than whether it's morally right (it's obviously not).