Can anyone bid in LTM?

No. Under rule 80, enlisted or office-selected suppliers and contractors are invited. Check first whether your firm is enlisted.

Is security needed in RFQ?

No. Under rule 91(6), tender security and performance security cannot be asked under the quotation method.

Can small jobs also go to OTM?

Yes. Under rule 78, OTM is the first method to consider unless another is more reasonable.

OTM, LTM, RFQ, DPM under PPR 2025: which one when

Last updated: 27 Oct 2026 · 5 min read

At a glance

OTM (open tender) is the method to think of first. The others apply in set conditions and inside value limits.
LTM invites enlisted suppliers or contractors. For domestic works the limit is Tk 5 crore, and for goods and services Tk 50 lakh.
RFQ (quotation) is for small purchases. No security is needed, and at least 3 responsive quotations are required.
DPM (direct procurement) is an exception that needs a recorded reason and approval.

The tender notice names the method: OTM, LTM, RFQ or DPM. From it you can tell whether you may bid, how much paper you need, and how much competition to expect. Here is how PPR 2025 sets them out.

This is not legal advice. Value limits and times are in Schedule-2 and can change. Check your own notice and document. Sources at the end.

OTM (open tender)

Under rule 78(1), OTM is considered first unless another method is more reasonable. The office advertises and invites all eligible firms. For domestic OTM (goods, works and services) the minimum time to prepare a bid is (Schedule-2, rule 78(8)):

up to Tk 1 crore: 10 days
above 1 crore up to 5 crore: 14 days
above 5 crore up to 30 crore: 21 days
above 30 crore: 28 days

International OTM needs at least 42 days from the advertisement (Schedule-2, rule 102(1)).

LTM (limited tender)

Under rule 80, LTM fits a few situations: very special items that only a few suppliers can give, urgent need, or buying from enlisted suppliers and contractors. Under Schedule-2 the LTM limits for enlisted firms are:

goods, physical services and single service contracts: up to Tk 50 lakh
domestic works: up to Tk 5 crore

The rate band, which matters most in works. Under rule 80(2), in these domestic works a bid more than the Schedule-2 percentage below or above the office's estimate is cancelled. The schedule says 5%. The rules' own example: with an estimate of Tk 100 lakh you must quote between Tk 95 lakh and Tk 105 lakh, and outside that the bid is cancelled. So check the estimate carefully before you set an LTM rate.

Bid preparation time (Schedule-2, rule 81(5)): 14 days under rule 80(1)(ক), (গ) and (ঙ), 7 days under (খ), and normally 10 days for enlisted-firm LTM under 80(1)(ঘ). With the office head's approval it can be under 5 days for natural disasters or urgent matters of national importance. If several bidders quote the same rate, a lottery decides (rule 119).

For small firms: under the proviso to rule 80(1)(ঘ) an office shall reserve at least 25% of its annual operating budget allocation for micro and small enterprises, women-owned enterprises and new enterprises (special purchases excepted).

RFQ (quotation)

For small, simple purchases, rules 90 to 94.

Security: no tender or performance security (rule 91(6)).
The quotation document: no fee can be charged (rule 92(3)).
Paper: the office may ask for a trade licence, TIN, VAT registration and a bank certificate (rule 91(2)).
Time: 3 to 7 days from the date of the invitation (Schedule-2, rule 92(4)).
How many: at least 3 responsive quotations are needed (rule 92(6)). Otherwise the office cancels or recommends another method (rule 94(7)).
Who wins: the lowest among the responsive quotations (rule 94(2)).

Value limits depend on the office level and budget type. For example, under the operating budget at ministry, division and directorate head offices, up to Tk 5 lakh per purchase for goods and Tk 10 lakh for works or physical services (Schedule-2). At upazila level the limits are lower. Find your office's limit in the notice or TDS.

DPM (direct procurement)

Rules 97 to 101. Direct procurement has three forms: direct contracting (rule 99), cash purchase (rule 100) and force account (rule 101). Rule 97(1) says it must not be used to avoid competition or to favour anyone. The decision needs approval from the head of the office or an authorised officer. Limits for emergencies are in Schedule-2. No tender security is needed in direct procurement (rule 98(5)).

An ordinary contractor has little chance to bid here. But you can see who got the work on the who got the work page.

OSTETM and two-stage

For large and complex jobs there is OSTETM (one stage, two envelopes, rules 86 to 89) or the two-stage method (rules 82 to 85). In the first stage of a two-stage tender no tender security is needed (rule 83(3)).

What to do

Read the method in the notice first and check you qualify. LTM needs enlistment.
In LTM works, keep your rate inside the 5% band around the estimate.
If you are a new firm, start with small RFQs to build experience certificates.
See which methods are open now on all tenders, past rates on the rates page, and plans on pricing.

Earlier plain guides: OTM, LTM, RFQ, DPM and LTM work.

Sources

Common questions

Can anyone bid in LTM?: No. Under rule 80, enlisted or office-selected suppliers and contractors are invited. Check first whether your firm is enlisted.
Is security needed in RFQ?: No. Under rule 91(6), tender security and performance security cannot be asked under the quotation method.
Can small jobs also go to OTM?: Yes. Under rule 78, OTM is the first method to consider unless another is more reasonable.

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