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A good privatisation/contracting out process is indeed not just about the cheapest tender. It is about how the tenderer proposes to deliver on the contract terms and the quality and sustainability of the proposals. At DDC that was one of the early lessons in my time and often the cheaper option was not taken where we felt it did not have a good prospect to deliver. A cheaper, inferior option could cost more money than one that, on paper, costs more. Careful evaluation of the full tender is always needed to select the one with the best combination of service delivery and cost.
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