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.