That's right. It's a tender process, and it also has to its benefit the bulk-buy aspects, so they can get a lot better price and insist on good quality. That's how the Global Fund actually does it, through a mechanism called the voluntary pooled procurement system, and it is actually quite highly encouraged by the Global Fund, particularly in countries where they are aware there's no infrastructure whatsoever.
On October 7th, 2010. See this statement in context.