What is the difference between quotation and direct order?

To analyze these statements about quotations and direct orders, let's break them down one by one:
A) Notice of quotation is published in newspaper but not for direct order.
This statement highlights a key difference in the procurement process. Quotations require public notification, while direct orders do not. This suggests that quotations are more transparent and open to competition.
B) Bid security amount for quotation is more than that of direct order.
This indicates that quotations require a higher financial commitment from bidders compared to direct orders. This could be to ensure more serious and capable bidders participate in the quotation process.
C) In direct order the rates of contract shall be fixed by verbal agreement, for quotation it shall be written.
This statement is problematic. In most formal procurement processes, verbal agreements are not considered sufficient, especially for setting contract rates. Both quotations and direct orders typically require written documentation for legal and auditing purposes.
D) Both are similar except the threshold of contract amount.
This statement suggests that quotations and direct orders are largely similar processes, with the main difference being the contract value threshold that determines which process is used. This is partially true, but it oversimplifies the differences between the two methods.
Based on this analysis, statement D is the most accurate, but it doesn't capture all the nuances. Quotations and direct orders do have similarities, and the contract amount threshold is indeed a key factor in determining which method is used. However, there are other significant differences as well, such as the public notification requirement mentioned in statement A and the potentially different bid security amounts mentioned in statement B.
Statements A and B appear to be accurate and highlight important distinctions between the two procurement methods.
Statement C is likely inaccurate or misleading, as both quotations and direct orders typically require written documentation for contract rates.