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Can we consider someone not responsible based on rumors and award a contract to a higher bidder?

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Can we consider someone not responsible based on rumors and award a contract to a higher bidder?

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No. To award the contract to a higher bidder capriciously without a full and careful investigation is an abuse of discretion. Where a full investigation discloses a substantial reason that appeals to the sound discretion of the contracting officer, the university may award a contract to one not in dollars the lowest bidder. The sound discretion, which is upheld, must be based upon a knowledge of the real situation gained by a careful investigation.

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