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Thursday, June 20, 2013

Direct Contracting Method

Direct contracting is contracting without competition (single source) and may be appropriate method under the following circumstances:
- Additional items are required under an existing contract, which was awarded in accordance with International competitive procedures.
Donors shall be statisfied in such cases that no better offer is likely to be received, and that the price to be paid is not more than the original price. Usually, the repeat order shall occur within 18 months of the original order while the additional quantities shall not exceed 30% of the original quantities.
- Standardization of equipment or spare parts, to be compatible with existing equipment, may justify additional purchases from the original supplier. For such purchases to be justified, the orginal equipment shall be suitable, the number of new items shall generally be less than the existing number, the price shall be reasonable, and the advantages of another make or source of equipment shall have been considered and rejected on grounds acceptable to donors.
- The required equipment is proprietary and obtainable only from one source.
- The contractor responsible for a process design requires the purchase of critical items from a paricular supplier as a condition of performance guarantee.
- Where civil works are to be contracted that are a natural extension of an earlier or ongoing job and it can be shown that the engagement of the same contractor will be more economical and will ensure competibility of results in items of quality of work.
- In exceptional cases, such as in response to natural disasters.
After the contract signature, the borrower shall publish in an English language newspaper or in English on a well-known and freely accessible website the name of the contractor, price, duration, and summary scope of contract. This publishcation may be done quarterly and inte format of a summarized table covering the previous period.
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