Rate contract.

(1) A procuring entity may choose to engage in a rate contract procedure in accordance with the rules as may be made in this behalf, where it determines that the need for the subject matter of procurement is expected to arise on an indefinite or repeated basis during a given period of time; (2) A procuring entity may award a rate contract based on open competitive bidding or by means of other procurement methods in accordance with the provisions of this Act. (3) Subject to the rules as may be made in this behalf, the procedure for rate contract shall include the following, namely:- (a) the manner in which rate contract is to be entered into, including selection of the method of bidding to be followed; and (b) the manner in which a procurement contract has to be entered into using rate contract procedure.