Section 31Sec./Art. 31

Direct Contracting. - A mode of procurement wherein the supplier is required to submit a price quotation or a pro-formal invoice together with the conditions of sale, which may be accepted immediately or after some negotiations. Direct contacting may only be resorted to in any of the following conditions:

(a) When the goods are of proprietary nature, which can be obtained only from the proprietary source, or when patents, trade secrets, and copyrights prohibit others from manufacturing the same item;

(b) When the procurement of critical components from a specific manufacturer, supplier, or distributor is a condition precedent to hold a contractor to guarantee its project performance, in accordance with the provisions of the contract; or

(c) When it is sold by an exclusive dealer or manufacturer which does not have sub-dealers selling at lower prices and for which no suitable substitute can be obtained at more advantageous terms to the government.