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Client Query 081:-  There is an XZY firm which is a commercial organization. Now it has to sale and compete with multinational companies, therefore it requires to publicize various products through electronic and print media in order to reach the end user. Now for that purpose advertisements are necessary which involves creative and artistic work which is suitably designed by professionals of high level and selective companies/individuals with in depth expertise of artistic values.  Now keeping all this in mind I wanted to ask that can these services be permissible to be purchased by application of Rule 42 (d) ii? Please if you could advise us in this regard! Best regards!


Nasir Hameed, UK

Answer:- Thank you for writing to us. As per your query, now according to Rule 42(d)(ii) of Public Procurement Rules, 2004 which states that a procuring agency may engage in negotiated tendering with one or more suppliers or contractors with or without prior publication of a procurement notification. This procedure shall only be used for technical or artistic reasons, or for reasons connected with protection of exclusive rights or intellectual property, the supplies may be manufactured or delivered only by a particular supplier. The above rule can be invoked subject to the underlying conditions mentioned in it. On the other side, advertisements can be designed by many advertising agencies and for this purpose intellectual property rights are not granted to a single supplier. For designing of advertisements open competition can be held and best designing firm or agency can be selected for award of contract. Hope this answers your query!

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