Yup. If nothing ever failed, there's be no point in doing tests!
In this case, it's a shame that it was the test setup equipment that failed, though; they didn't get a good test of Orion's parachutes.
All I know about the space suit contract is what's on the news. NASA awarded the contract. There were two competitors and the loser protested. The GAO investigated. They threw out the loser's protest but in the process of investigating the selection process, the GAO found enough nits that NASA decided to cancel the contract they had awarded and ask for new proposals.
Emphasis: None of this reflects badly the company that won the contract, Oceaneering International. They did everything right. If there were any goofs, they were in the process of selecting who would get the contract; that was all internal to NASA. There aren't enough details available to the public to determine whether I agree with the decision to recompete the contract.
It delays the development of the space suit by several months, but beyond that, I could only speculate. I don't know what the long-term effects on the Constellation program will be. The winning company had hired some of the folks from the losing company, and I don't know what the effect will be on those guys, either.