Final answer:
Open tenders is a component of a bid - True
Step-by-step explanation:
Open tenders are a process in which organizations openly invite bids from multiple suppliers or contractors for a project or service. It is a method used in procurement to ensure transparency, fair competition, and value for money. The open tender process allows any supplier or contractor to submit a bid and compete for the opportunity to ideally fulfil the project requirements.
For example, a government agency may issue an open tender for the construction of a new school building. All interested construction companies can submit their bids, and the agency can choose the most suitable and competitive offer. Therefore, the statement that open tenders are a component of a bid is true.