OTM vs LTM in Bangladesh e-GP tendering
Open Tendering Method (OTM) and Limited Tendering Method (LTM) explained for Bangladesh e-GP: definitions, a side-by-side comparison table, when each method applies under the PPR, and step-by-step guidance for tenderers and procuring entities.
Introduction and definitions
Choosing the right method is one of the most important decisions in Bangladesh public procurement. Under the PPR, a procuring entity mainly uses two tendering methods — the Open Tendering Method (OTM) and the Limited Tendering Method (LTM). Picking the wrong one can lead to a cancelled tender or a later challenge, so both tenderers and procuring entities need to know the difference.
What is OTM?
The Open Tendering Method (OTM) is open competitive tendering. A public notice is published on the national e-GP portal and any eligible tenderer may submit a bid. Competition is at its highest, which usually produces a better price for the same quality. OTM is the default method for most works, goods and services.
What is LTM?
The Limited Tendering Method (LTM) is restricted tendering. No public notice is issued; instead, direct invitations go to an approved short list of tenderers. It is normally used for low-value procurement, genuine urgency, or where only a few suppliers exist, and it requires a written justification and approval.
Side-by-side comparison
| Aspect | OTM | LTM |
|---|---|---|
| What it means | Any eligible tenderer may submit a bid after a public invitation. | Only specifically invited tenderers may submit a bid. |
| Invitation | Public notice on the national e-GP portal and newspapers. | Direct invitation letters to a short list of tenderers. |
| Competition | Open and unlimited — the default for most procurement. | Restricted to the invited list, so competition is limited. |
| Typical value band | Used above the LTM value ceiling set in the PPR. | Used for low-value procurement within the PPR ceiling. |
| Transparency | Highest — every stage is visible to all bidders on e-GP. | Lower — only invited bidders see the process. |
| Approval needed | Standard administrative approval for the tender. | Needs documented justification and approval for using a limited method. |
| Best suited for | Works, goods and services where many suppliers can compete. | Urgent, specialised or very small purchases with few known suppliers. |
When to use which method
Choose OTM when…
- The estimated value is above the LTM ceiling in the PPR.
- Several qualified suppliers or contractors are available.
- The requirement is standard and can be described clearly in the tender document.
- You want maximum competition and the lowest defensible price.
Choose LTM when…
- The value falls within the LTM ceiling allowed by the PPR.
- Only a small number of known suppliers can meet the requirement.
- The purchase is genuinely urgent and open tendering would cause delay.
- The procuring entity records a written justification and obtains approval.
Step-by-step guidance
1. Confirm the estimated value
Prepare the cost estimate first. The value decides whether OTM or LTM is allowed, so record how the estimate was built.
2. Match the method to the PPR
Compare the estimate with the current PPR thresholds. If the value is above the LTM ceiling, use OTM unless a documented exception applies.
3. Prepare the tender document
Use the standard e-GP tender document for the chosen method. For LTM, attach the justification and approval for the limited invitation.
4. Publish or invite on e-GP
For OTM, publish the notice on the national e-GP portal so all eligible bidders can respond. For LTM, issue invitations to the approved list through the portal.
5. Open, evaluate and award
Open bids on the published date, evaluate against the criteria in the document, and award to the lowest evaluated responsive bidder. Record every decision in the procurement file.