The type and size of company were important to you for the solution that involved the entire project being subcontracted. You are saying though that this did not occur to you, that it is not important and that you do not typically ask for details about the second option.
You can appreciate why we find it strange that the contract was then awarded to a company with two people working from their basement.
Why didn't you ask any questions when this report was submitted to you? You had the right to ask questions about the type of company that would find the expertise.