By GPPB definition, Direct Contracting (or Single Source Procurement) is,
"a method of procurement of goods that does not require elaborate Bidding Documents. The supplier is simply asked to submit a price quotation or a pro-forma invoice together with the conditions of sale. The offer may be accepted immediately or after some negotiations. Direct Contracting may be resorted to under any of the following conditions:
a) Procurement of goods of proprietary nature which can be obtained only from the proprietary source, i.e., when patents, trade secrets, and copyrights prohibit others from manufacturing the same item;
b) When the procurement of critical components from a specific supplier is a condition precedent to hold a contractor to guarantee its project performance, in accordance with the provisions of its contract; or
c) Those sold by an exclusive dealer or manufacturer which does not have sub-dealers selling at lower prices and for which no suitable substitute can be obtained at more advantageous terms to the government.
To justify the need to procure through the Direct Contracting method, the End-user should conduct a survey of the industry and determine the supply source. In all cases where Direct Contracting is contemplated, the survey must be
conducted prior to the commencement of the procurement process. Moreover, the End-User must justify the necessity for an item that may only be procured through Direct Contracting, and it must be able to prove that there is no suitable substitute in the market that can be obtained at more advantageous terms"
Government Procurement Policy Board [GPPB]. (2021 March 31). “1. Direct Contracting” under “V. Specific Guidelines” of “Annex H. Consolidated Guidelines for the Alternative Methods of Procurement”. In the 2016 Revised Implementing Rules and Regulations of Republic Act No. 9184 (updated as of 31 March 2021)”. Retrieved from https://www.gppb.gov.ph/assets/pdfs/Updated%202016%20IRR_31%20March%202021.pdf
For the template, see the link below: