Is it mandatory to purchase on DGS&D Rate Contract even if the required item is available in market on cheaper rates. Whether, price negotiations should be carried out in this case?
Ans. Rate Contract for an item is finalized with the designated supplier by the DGS&D (under the Department of Supply) after due technical evaluation and commercial negotiation. Hence it is desirable to make use of such Rate Contract, which would not require any further technical and/or commercial evaluation besides saving time and efforts. However, it is not mandatory for Defence users to purchase on a DGS&D Rate Contract and an Organization/Office could makepurchases through Open Tender or Limited Tender process under the existing rules/procedure.
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