How did direct negotiation differ from pre-qualified tender under Jana Wibawa?

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Direct Negotiation and Pre-Qualified Tenders Under Jana Wibawa Differed Significantly

Under the Jana Wibawa programme, direct negotiation involved awarding government contracts to a single company without engaging in an open tender process or competing on price. In contrast, pre-qualified tenders allowed companies that had already been vetted for their experience, financial stability, and technical capabilities to participate in a tender process. The former finance minister, Tengku Zafrul Tengku Abdul Aziz, stated that all contractors for Jana Wibawa projects were proposed by the Prime Minister's Office, and his ministry's role was to evaluate and appoint them if they met existing conditions.
Direct Negotiation Involved Single-Company Awards

The direct negotiation method within the Jana Wibawa programme was characterised by the award of a government contract to one specific company. This approach bypassed the competitive nature of open tenders, meaning there was no opportunity for other contractors to bid on the project or offer more competitive pricing. This method was employed for projects such as the RM100 million project for a new road connecting Felda Bukit Jalor to Gemas, Negeri Sembilan, which was awarded to KCJ Engineering Sdn Bhd.
Pre-Qualified Tenders Allowed Vetted Companies to Compete

The pre-qualified tender process, as implemented under Jana Wibawa, involved a selection of companies that had already met certain criteria. These companies were screened for their experience, financial capacity, and technical expertise before being permitted to enter the tendering phase. This method was used for projects like the Pulau Indah highway upgrade in Klang, Selangor, which involved six companies initially proposed by the Prime Minister's Office and eventually awarded to Sutracom for RM605.2 million.
Finance Minister Approved Project Awarding Methods

Crucially, the decision on whether a Jana Wibawa project would proceed via direct negotiation or a pre-qualified tender rested with the finance minister, not the prime minister. Tengku Zafrul confirmed that he, as the finance minister, held the authority to approve the method of awarding these projects. This is evidenced by his letter in July 2020 proposing the expedited Jana Wibawa programme, which was subsequently agreed to by the prime minister.
Prime Minister's Office Proposed All Contractors

Throughout the Jana Wibawa programme, all contractor companies that received project awards were those that had been put forward by the Prime Minister's Office. Tengku Zafrul testified that his ministry's function was primarily that of an implementer, responsible for evaluating and finalising the appointment of companies after they had passed the established conditions and rules. This applied even when companies, such as KCJ Engineering for the Felda Bukit Jalor to Gemas road project, initially failed evaluations but were subsequently approved after the PMO provided additional information.

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How did direct negotiation differ from pre-qualified tender under Jana Wibawa?

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