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Steps for direct contracting
Now that we are aware of the requirements for direct contracting, let us understand the steps involved in direct contracting:
1. Invite short period quotation/proposal except in the case of natural disaster.
2. Examine quotation/ proposal.
3. Issue work order/purchase order.
4. In case of items on Directorate General of Supplies and Disposals (DGS and D) rate contract and other rate contracts, place orders on the rate contract holder as per terms and conditions of the rate contract.
General Components Ltd produces a component ‘X', the selling price of which is Rs 50. The unit cost structure based on the present level of production/sales of 100 000 units
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