NPM 042-2012

Requesting Entity: Creser Precision Systems, Inc. (CPSI)

Issues Concern: Direct Contracting (Domestically produced patented inventions)



Whether the procuring entity should immediately resort to Direct Contracting in the instance that there is a domestic manufacturer of patented ammunitions.

[I]n order to justify the need to procure through direct contracting, the Bids and Awards Committee (BAC) should conduct a survey of the industry and determine the supply source. The survey should confirm the exclusivity of the source of goods to be procured.

[T]he fact alone that CPSI is a domestic manufacturer of patented ammunitions does not sanction the immediate resort to procurement through Direct Contracting, in lieu of Competitive Bidding. [T]he procuring entity must first justify the necessity for purchasing CPSI's patented ammunitions and it must be able to prove that there is no suitable substitute in the market that can be obtained at more advantageous terms, before it may decide to procure through Direct Contracting.