When can we resort to Direct Contracting Alternative Mode of Procurement?
These are the instances when direct contracting may be resorted to
1. Items of proprietary nature from proprietary source, i.e patents, trade secrets, and copyrights;
2. Critical components from a specific supplier to hold a contractor to guarantee its project performance; or
3. Items sold by an exclusive manufacturer or dealer, subject to the following conditions:
No other suppliers selling it at lower prices; and
No suitable substitute can be obtained at more advantageous terms to the Government
After conduct of market study, enduser has determined that any of the above conditions are met, then the enduser will have to submit justification/proof to the BAC for evaluation/review and if justified, the BAC will recommend to the HoPE such modality.
There should be a market research and survey first. If goods turned out to be available from a “single source” and there are no suitable substitute, then Direct Contracting may be resorted to using any of the conditions enumerated by @Edita Nota