If the item is by default blue, is it subject to the same upgrade/prefix system as the items that start green by default? As in, if I keep reverse engineering an item that's default schematic was blue, will it become purple?

Further, has anybody come across any exceptions to the system at all? I reverse-engineered a blue prefix critical belt about 30 times without it becoming purple and put it down to bad luck, but there doesn't seem to be any way of knowing for sure. Usually it takes only around half a dozen attempts.