(1) A procuring entity may choose to procure a subject matter of procurement by the method of competitive negotiations, if -
(a) owing to an urgency brought about by unforeseen events, the procuring entity is of the opinion that the subject matter of procurement cannot be usefully obtained by adopting the method of open competitive bidding or any other method;
or
(b) the subject matter of procurement involves livestock, cotton, oilseeds or such other agricultural produces whose prices fluctuate frequently and in the opinion of the procuring entity the subject matter of procurement cannot be usefully obtained by adopting the method of open competitive bidding or any other method.
(2) Subject to the rules as may be made in this behalf, the procedure for competitive negotiation shall include the following, namely:-
(a) purchase of the subject matter of procurement under this section shall be made through a purchase committee within the procuring entity and in such cases the purchase committee shall record a certificate to the effect that it is satisfied that the subject matter of procurement is of requisite quality and are priced at the prevailing market rate;
(b) to ensure effective competition, an adequate number, not being less than three, of potential bidders selected in a non-discriminatory manner shall be included in procurement process;
(c) an equal opportunity shall be given to all bidders to participate in the negotiations.
(3) Nothing contained in sections 5 to 10 (both inclusive), sections 12 to 27 (both inclusive) and Chapter III shall apply to purchases made under this section.