Taoiseach Simon Harris has said he is satisfied that a very robust and rigorous process has been followed in relation to a major construction contract which is set to be awarded to Invesis, a company controlled by the BAM group.
The BAM group is the main contractor on the National Children's Hospital project, a project which has seen massive spending overruns.
A report in today's Irish Times said the contract had not met value for money tests.
Mr Harris said that since the construction of the National Children's Hospital there had been a number of changes made in relation to how contracts are rewarded since.
"Obviously, from a procurement point of view, in general, Government must follow the rules in terms of companies being entitled to apply."
Mr Harris said the Government had gone through a very deliberate process in relation to this building work which relates to work on a number of technological universities in Galway, Donegal, Carlow and Waterford.
He said this had initially come to Cabinet in July when it was decided to take a further step in terms of value for money and cost benefit analysis along with further engagement with the Department of Public Expenditure and Reform.
He said his understanding now was that both the Department of Further and Higher Education and the Department of Public Expenditure and Reform saw real benefit of this project progressing.
He said it made sense from an economic and a cost point of view.
"Crucially, this is about delivering education facilities in Carlow and Waterford, Limerick, Galway and Letterkenny. Projects that have been sought for a very long time."