Sec. 54.511  Ordering services.

    (a) Selecting a provider of eligible services. In selecting a 
provider of eligible services, schools, libraries, library consortia, 
and consortia including any of those entities shall carefully consider 
all bids submitted and may consider relevant factors other than the pre-
discount prices submitted by providers.
    (b) Lowest corresponding price. Providers of eligible services shall 
not charge schools, school districts, libraries, library consortia, and 
consortia including any of those entities a price above the lowest 
corresponding price for supported services, unless the Commission, with 
respect to interstate services or the state commission with respect to 
intrastate services, finds that the lowest corresponding price is not 
compensatory.
    (c) Schools and libraries bound by existing contracts. Schools and 
libraries bound by existing contracts for service shall not be required 
to breach those contracts in order to qualify for discounts under this 
subpart during the period for which they are bound. This exemption from 
competitive bidding requirements, however, shall not apply to voluntary 
extensions of existing contracts.