Yes, but severing would end up in court versus a very belligerent party, who would do their utmost to cost you money. An organization that prioritizes safety over ethics will just suck up the extra cost, apparently.
There are companies and organizations out there fighting for what’s right in courtrooms. Invalidating troll-owned patents, striking down unfair contracts etc. Agency A was obviously not one of those organizations.
I worked for a very successful multinational that I think was relatively moral (at least very moral vs average - e.g. we at least stood by our commitments and contracts and didn’t try and re-trade them if they went against us) and they took the approach that they were never going to be a “soft target”: nuisance law suits - litigate don’t settle, unethical behavior by vendors or customers - we’ll see you in court. It was probably more expensive for a decade or so, but over the long run it saved a ton of money and hassle.