(1) In making procurement pursuant to clause (a) of sub-section (1) of Section 41 of the Act, direct procurement may be made not exceeding the following ceiling, subject to sub-rule (4):
(a) Construction work, goods or consultancy service the cost estimate of which does not exceed five hundred thousand rupees,
(b)
(1a) Notwithstanding anything contained elsewhere in this Regulation, medicinal goods the price of which does not exceed two million rupees or goods the price of which does not exceed one million five hundred thousand rupees which have been manufactured in Nepal may be directly purchased at the selling price specified by the manufacturer of such goods by publishing a notice in a newspaper of national circulation. In so making direct procurement, goods with Nepal Standard Marks shall be procured to the extent available.
Provided that if there is only one pharmaceutical company prequalified by the World Health Organization to manufacture any pharmaceutical product, such a pharmaceutical product may be procured through direct negotiation, irrespective of the amount of such product.
(1b) Notwithstanding anything contained in sub-rules (1) and (1a), no procurement exceeding the ceiling set out in those sub-rules may be made directly from the same person, firm, company or organization at one time or several times in one fiscal year.
(1c) Notwithstanding anything contained elsewhere in this Regulation, direct procurement of up to five million rupees may be made for hospitality and hotel accommodation for any very important person or important person of the government of a foreign country or
of an international inter-governmental organization who is paying a visit to Nepal at the invitation of the Government of Nepal.
(1d) Notwithstanding anything contained elsewhere in this Regulation, direct procurement of up to twenty-five thousand American Dollars may be made for the maintenance of the building or apartment of a Nepalese embassy or mission situated abroad.
(2) The procurement referred to in sub-rule (1) may be made by making a framework or unit rate contract.
(3) In cases where only one supplier has the right to supply proprietary goods or pharmaceutical products pursuant to clause
(c) of sub-section (1) of Section 41 of the Act, such goods or products may be procured from such a supplier or through his or her authorized seller or authorized agent.
(3a) Notwithstanding anything contained in sub-rule (3), if there is only one manufacturer of such goods as required for any public entity in Nepal and there is no other appropriate alternative, the chief of the public entity making procurement may, upon recording the same matter, make direct procurement from the manufacturer.
(3b) In making direct procurement from a manufacturer pursuant to sub-rules (1a) and (1b), it shall be made from the manufacturer who has fulfilled the following conditions:
(a) Such a manufacturer has published a list of retail and dealer selling price of his or her product in a newspaper of national circulation,
(b) Such a manufacturer gives the same discount to the procuring public entity as is given to the local dealer.
(3c) In the event of procurement being made pursuant to sub- rule (3a), the Public Procurement Monitoring Office may examine or cause to be examined the cost of production by the industry related to such procurement. If the cost is found unusual upon making such examination, such an industry may be blacklisted.
(3d) Notwithstanding anything contained elsewhere in this Regulation, a public entity may make direct procurement of such goods the price of which does not exceed two million five hundred rupees as manufactured by any cottage industry which is so specified by the Government of Nepal by notification in the Nepal Gazette as to be a domestic cottage industry, upon making a procurement contract with such a cottage industry.
(4) The public entity shall, in making direct procurement exceeding one hundred thousand rupees, make procurement by inviting written quotations or proposals from at least three suppliers, construction entrepreneurs, consultants or service providers included in the standing list.
(5) In making direct procurement of proprietary goods referred to in clause (d) of sub-section (1) of Section 41 of the Act, such procurement may be made up to thirty percent price of the previous contract price.
(5a) If any public entity is to procure any goods or service produced or distributed by another public entity, it may directly procure such goods or service at the selling price specified by the competent authority of the public entity producing or distributing such goods or service.
(5b) If any public entity is to procure any goods from any international inter-governmental organization or government of a foreign country or any public entity of such a country, it may directly procure such goods at the selling price specified by such an organization, government or entity.
(5c) Notwithstanding anything contained elsewhere in this Rule, if any public entity is to make procurement pursuant to sub- rules (5a) and (5b), it does not need to require any security.
(6) In the case of a direct procurement made in the circumstances referred to in the other clauses than the circumstances referred to in clauses (a) and (e) of sub-section (1) of Section 41 of the Act, the public entity shall publicly publish a notice thereof, setting out the name of the supplier, construction entrepreneur, consultant or service provider, together with the nature of, reason and basis for, such procurement.
(7) Approval of one level higher authority shall be obtained to make procurement in the circumstance referred to in clause (d) of sub-section (1) of Section 41 of the Act.