Section 8: Procurement Method to be Selected

1) A Public Entity, while procuring, shall have to procure by applying any of the following methods based on such conditions and purchase price as prescribed:

(a) For procurement of goods, construction works or other services:

(1) By inviting open bids at the international level,

(2) By inviting open bids at the national level,

(3) By inviting sealed quotations,

(4) By procuring directly,

(5) Through the participation of the users’ committee or the beneficiary group,

(6) Through the force account,

(7) By the lump sum method,

Explanation: For the purpose of this sub-section, “by lump sum method” means the method of submitting a bid by agreeing on the percentage of work to be done, less or more than the total quantity and cost estimate of each unit.

(8) By the method of purchasing at a rate determined by the manufacturer or authorised seller (catalogue shopping),

Explanation: For the purpose of this sub-section, “by the method of purchasing at a rate determined by the manufacturer or authorized seller (catalog shopping)” means the method of purchasing by holding a competition at the price determined by the company manufacturing a product based on the characteristics, quality and facilities of the product after making it public on the website or document (brochure) of the concerned company.

(9) Limited Tendering Procurement Method,

Explanation: For the purpose of this sub-section, “Limited Tendering Procurement Method” means a procurement method where there are only a limited number of producers, suppliers or service providers in the procurement of any goods, construction work or service, where such producers, suppliers or service providers are invited to compete only among such producers, suppliers or service providers.

(10) Buy-back Procurement Method,

Explanation: For the purpose of this sub-section, “Buy-back Procurement Method” means a method whereby goods or machinery or equipment which become unviable after a certain period of time, or which cannot be auctioned or stored or used in view of public health or the environment are returned to the relevant producer or supplier after being evaluated as prescribed.

(b) Procurement of consultancy service:

(1) By requesting competitive proposals,

(2) Through direct negotiations.

2) In making procurement pursuant to this Act and the rules framed under this Act, procurement shall not be so made in piecemeal as to limit competition.

3) The provisions relating to the procurement method referred to in sub-clauses (7), (8), (9) and (10) of clause (a) of sub-section (1) shall be as prescribed.