OTM, LTM, RFQ, DPM: government procurement methods explained

Last updated: 20 Oct 2026 · 6 min read

OTM, LTM, RFQ and DPM are procurement methods: the rules for how an office chooses a contractor or supplier. The method tells you who may bid, how much competition there will be, and how much paperwork is involved. Every e-GP notice states its method. New contractors need to understand this, because not everyone can bid under every method.

The methods are set by the Public Procurement Act 2006 (PPA) and the Public Procurement Rules 2025 (PPR 2025). The value limit for each method sits in Schedule-2 of the rules. A few key limits are below and the full detail is in the PPR 2025 post. Limits can change, so check your notice before you bid.

OTM (open tendering)

The open tendering method is the main method of public buying. The tender is published on e-GP, and larger ones in newspapers too. Anyone who meets the eligibility can bid. There is no upper value limit, so nearly all large work goes through OTM.

• Who can bid: any firm registered on e-GP that meets the eligibility.
• Competition: high. In busy districts one job can draw many bids.
• What you need: tender security, proof of liquid asset, turnover and experience.
• Suits: firms with experience and financial capacity.

LTM (limited tendering)

Under the limited tendering method only certain firms can bid. For Works these are usually contractors enlisted with that office, such as firms enlisted with LGED or another engineering department. For Goods it is used when only a few suppliers can provide the item. The amounts are usually small. For enlisted firms, Schedule-2 sets the LTM limit at Tk 50 lakh for goods, physical services and single service contracts, and Tk 5 crore for domestic works.

In domestic Works LTM (from enlisted firms), a bid more than 5% below or above the office's estimate is cancelled (rule 80(2), Schedule-2). When several qualifying bids quote the same rate, a lottery decides (rule 119). Beyond that, go by what your tender document says.

• Who can bid: only enlisted or invited firms.
• Competition: among enlisted firms, but there can be many of them.
• Suits: small local contractors enlisted with a particular office.

If you are not enlisted, do not waste money on LTM documents. The all tenders page on ProcureIndex has a filter to show or hide LTM and RFQ.

RFQ (request for quotation)

The request for quotation method is the simple method for low-value buying. The office asks a few suppliers or contractors for prices and gives the job to the lowest qualifying quotation. It is common for off-the-shelf goods, small repairs and small services.

• Who can bid: those the office asks. When it is published on e-GP, registered firms may take part as the notice allows.
• Paperwork: light. Tender security and performance security cannot be asked (rule 91(6)).
• Value limit: there is a limit per purchase and a yearly total.
• Suits: new or small firms that want to build experience.

On e-GP you will see a few RFQ variants, such as RFQ, RFQU and RFQL. The idea is the same: quick price collection for small purchases.

DPM (direct procurement)

Under the direct procurement method the office buys from one supplier without competition. It is an exception and needs a specific reason under the rules, for example:

• An emergency, disaster or sudden need.
• Only one supplier provides the item (proprietary).
• Additional purchases from the same supplier to match an existing contract.
• Buying from a government-owned entity.

Ordinary contractors have almost no chance to bid under DPM. But you can still see who won DPM contracts on the awards page.

OSTETM and other methods

• OSTETM (one stage, two envelopes): the bid is submitted in two parts. The technical part is opened first; only those who pass have their price opened. Used for complex Goods or Works.
• TSTM (two-stage tendering): for very complex work, where technical aspects are discussed first and final bids are taken later.
• Consulting services: separate methods such as QCBS, LCS and SSS, where quality counts alongside price.

Side by side

What the method tells you

The method is not only a rule; it is business information. If an office gives most of its work through LTM, enlistment there matters. If an office issues many RFQs a year, it is a steady source of work for small suppliers. And seeing which firms win repeatedly under OTM tells you who your real competitors are.

On ProcureIndex each office page shows who has won there and what kinds of tenders it issues. Tender pages also spell out the method, for example "OTM (open tendering)".

Which suits you

If you are brand new, start with RFQ and small OTM tenders. You will build up experience certificates, which you need to qualify for larger work later. If you work locally, get enlisted with your district's engineering offices to open up LTM. As your experience and liquid asset grow, move on to larger OTM tenders.

To see which methods are common in your district, open its page, such as Bogura, Jashore or Noakhali. For what came in today, see today's tenders. The full route to finding tenders is in how to find government tenders, and short answers are on the FAQ page.

Rule numbers and the full detail are in OTM, LTM, RFQ, DPM under PPR 2025.

Rules and amounts change now and then. Check the latest rules on e-GP or the BPPA site before you bid.

Source: eprocure.gov.bd