Section 41: Provision for Direct Procurement

1) Notwithstanding anything contained elsewhere in this Act, goods or consultancy services or other services may be directly procured or construction work may be caused to be carried out directly in the following conditions:

(a) Low-value procurement valuing up to the prescribed amount,

(b) If only one supplier, construction entrepreneur, consultant, or service provider has technical efficiency or capacity to fulfil the procurement requirement,

(c) If only one supplier has the exclusive right to supply the goods to be procured and no other appropriate alternative is available,

(d) If additional goods or services of proprietary nature within the prescribed limit is to be procured from the existing supplier or consultant or service provider after it has been proved that if the existing supplier or consultant or service provider is changed to replace or extend existing goods or services or the spare parts of the installed machine the goods or services existing in the Public Entity cannot be replaced or changed,

(d1) If a public body has to make any purchase from another public body,

(d2) If goods or services have to be purchased from an international intergovernmental organisation at the rate specified by that organisation,

(d3) If purchases have to be made under special circumstances,

(e) If the most necessary construction works, goods, consultancy services or other services within the limit as prescribed but not included in the initial contract due to failure to foresee and difficult to be completed by separating from the initial contract due to technical or financial reasons, are to be procured.

(f) If the service of a particular consultant with his unique qualifications is immediately needed for the work concerned, or where the service of the same consultant is indispensable.

2) Notwithstanding anything contained elsewhere in this Section, procurement to be made pursuant to clause (b), (e) and (f) shall be made in the case of the Public Entity under sub-clause (1) of clause (b) of Section 2 as per the decision of Government of Nepal, Council of Ministers, on recommendation of the following committee and in the case of other Public Entity as per the decision of the supreme executive body of that entity:

3) For the direct procurement pursuant to Sub-section (1), the Public Entity shall invite written rate or proposal from only one supplier or construction entrepreneur or consultant or service provider after preparing a written description as prescribed of the special matter concerning its requirements and quality, quantity, terms and conditions and time of supply and may procure by holding negotiations according to necessity.

Provided that such procurement shall be made only after obtaining prior approval where approval is required under this Act, and by concluding a contract.

^{1 Removed by the First Amendment.}