Requirements for direct contracting
Let us now look at the requirements for direct contracting:
- The requirement of direct contracting should be such that it can be justified on economic grounds.
- No purpose would be served by inviting quotations as comparison is not possible.
- Avoid losses in operation of a production unit or a project by making the equipment or material available.
- Non-availability of a competitive market.
- Existing Cooperative agreement between the parties involved.