Open Tendering Method (OTM)

Open Tendering Method (OTM) is the most preferred procurement method for goods and works procurement under PPR 2008. This method ensures the maximum competition among the tenderers resulting the possible lowest contract price. Also OTM ensures equal opportunity for all qualified bidders. OTM may be limited to national contractors or may be open for international contractors which is known as International OTM. 

Although OTM procurement method is preferable, for smaller packages OTM may not be suitable because of high administrative cost and time involvement. For low value procurement, the preferred method may be LTM or even more simple RFQ method.

 OTM Key Aspects:

•  Invite Eligible Tenderers to participate in the tendering process through public advertisement in website and newspaper
• The most preferred method for goods & works procurement
• No enlistment is required. Thus the bidding process is virtually open for all.
• Normally requires previous experience of similar nature of works or goods supply
• +- 10% on Official Cost Estimate applies for Works procurement. No such restriction for Goods.
• OTM may be with or without Pre-qualification. Pre-qualification is not permitted for Construction
  Works below BDT 350 million.

Standard Tender Documents (STD) for OTM:

• PW3 STD is used for national OTM for Works procurement
• PW7 STD is used for international OTM for Works procurement 
• PG3 STD is used for national OTM for Goods procurement
• PG4 STD is used for international OTM for Goods procurement

Tender Validity Period is normally set 60 days to 120 days during which the offer price is binding on the tenderer. In special cases longer or shorter validity period may be specified with permission from the Head of Procuring Entity (HOPE). Notification of Award must be issued with tender validity period. 

 In OTM tenders following qualification criteria are normally set:

 a) For works procurement:

• General experience in construction for certain years
• Specific experience of relevant field construction having a minimum contract value
• Average annual construction turn-over
• Available liquid asset i.e. working capital net of other contractual obligations
• Equipment requirements
• Technical manpower  

 

a) For goods procurement:

• General experience in business of goods supply/production for certain years
• Specific experience of relevant goods supply/production having a minimum contract value
• Annual production capacity or supply capacity
• Available liquid asset i.e. working capital net of other contractual obligations
• Certifications (e.g. ISO 9001)
• Technical manpower  

 

 OTM tenders offer business opportunity for all potential and interested enterprises. So OTM is always preferable over the other methods of procurement.