Not quite. NASA has been saying during the entire process that "They hope to be able to give the award to two companies, but that depends on having the budget to do so, and they reserve the right to award it to just one, or even not award it at all, depending on the budget available and the quality of the applicants."
And in any case, there was more than two proposals, so even if NASA was legally obligated to select & fund two of them, there was still no guarantee that Blue Origin would have got one. At this point, this whole thing just seems like Blue Origin desperately trying to starve a competitor of funding, and has nothing to do with whether or not Blue Origin should have actually been selected.
Either that, or it is a prestige thing, and they can't bear the idea that someone else might have a better proposal than they do.