(1) A procuring entity may choose to procure the subject matter of procurement by the method of single source procurement, if-
(a) the subject matter of procurement is available only from a particular prospective bidder, or a particular prospective bidder has exclusive rights in respect of the subject matter of procurement, such that no reasonable alternative or substitute 23 source exists, and the use of any other procurement method would therefore not be possible; or
(b) owing to a sudden unforeseen event, there is an extremely urgent need for the subject matter of procurement, and engaging in any other method of procurement would be impractical; or
(c) the procuring entity, having procured goods, equipment, technology or services from a supplier, determines that additional supplies or services must be procured from that supplier for reasons of standardization or because of the need for compatibility with existing goods, equipment, technology or services; or
(d) there is an existing contract for the subject matter of procurement which can be extended for additional goods, works or services and that the procuring entity is satisfied that no advantage would be obtained by further competition, the prices are reasonable and provisions for such extension exist in the original contract; or
(e) the procuring entity determines that the use of any other method of procurement is not appropriate for the protection of national security interests; or
(f) procurement from a particular prospective bidder is necessary in terms of sub-section (2) of section 6; or
(g) subject matter is of artistic nature; or
(h) subject matter of procurement is of such nature as requires the procuring entity to maintain confidentiality, like printing of examination papers.
(2) Subject to the rules as may be made in this behalf, the procedure for single source procurement shall include the following, namely:-
(a) the procuring entity shall solicit a bid from a single prospective bidder;
(b) the procuring entity may engage in negotiations in good faith with the bidder.