(1) In every case of a procurement made under this Act the procuring entity shall first determine the need for the subject matter of procurement.
(2) While assessing the need under sub-section (1), the procuring entity shall take into account the estimated cost of the procurement and also decide on the following matters, namely:-
(a) the scope or quantity of procurement, if determined;
(b) the method of procurement to be followed with justification thereof;
(c) need for pre-qualification, if any;
(d) limitation on participation of bidders in terms of section 6, if any applicable, and justification thereof; and
(e) any other matter as may be prescribed.
(3) The procuring entity shall maintain documents relating to the determination of the need for procurement under sub-section (1) and the assessment made under sub-section (2).