Don’t be fooled – an RFP is not open tender -- Politicians and government officials are fond of using the term “open tender” to lend an air of transparency to their awarding of contracts. But do all so-called open tender projects satisfy the strict definition of an open tender? Let’s take a look at the controversial RM6.3 billion roads and tunnel project in Penang. Since March 2008, Chief Minister Lim Guan Eng has been bragging about his implementation of open tender in Penang. What Lim has implemented so far is only a request for proposal (RFP). Whats the difference? An RFP is an invitation to enter into negotiations. When the successful party is chosen, it has been granted the opportunity to negotiate with the owner/developer for the work, but it has not yet been awarded the contract. In contrast, a call for tenders is a more formal, detailed process that gives the bidders the assurance that if they put forward the best bid, judged according to the criteria set out in the tender, they must, in accordance with the law, be awarded the job. --- theantdaily/Main/Don-t-be-fooled-an-RFP-is-not-open-tender
Posted on: Sun, 24 Aug 2014 06:00:00 +0000