What is PPR 2025?
Public Procurement Rules 2025 is known as "PPR 2025" in short. Now all public procurement of Bangladesh will be governed by PPR 2025 which entirely replaced the old PPR 2008. This is a significant effort to improve efficiency of public procurement. The new PPR 2025 comprises of 154 Rules and 21 Schedules.
PPR 2025 has been published by Bangladesh Public Procurement Authority (BPPA) while the old PPR 2008 was published by Central Procurement Technical Unit (CPTU).
What is new in PPR 2025?
PPR 2025 has some exciting new features as discussed below:
- Mandatory use of Electronic Government Procurement (e-GP) Portal: All procuring entities are now obliged to use the e-GP portal for any procurement which are supported on eGP system as per rule 150(1).
- Removal of the ±10% price cap for national works procurement: Plus/minus 10% limit was a controversial system which now has been repelled.
- Disclosure of the beneficial owner: It is now required to disclose the actual beneficial owner of any contract award. The purpose is to improve transparency and to prevent the use of proxy bidders or use of many different licenses by one person.
- Significantly low tender (SLT) evaluation System: A new formula-based system for evaluating bids, incorporating factors like average acceptable bids (50% weight), official estimate (20%), and recent e-GP market prices (30%), to make assessments of quoted prices more market-sensitive and transparent. This system will determine Significantly low tender (SLT) objectively eleminating any subjective judgement and those SLTs will be declared as non-responsive.
- Introduction of Sustainable Public Procurement (SPP): The concept of sustainable procurement has been incorporated into rule no. 6 of the new PPR 2025.
- Recognition of Physical Services Category: Physical services (a.k.a. Non-Consulting Services) are now established as a distinct procurement category, with expanded provisions for framework agreements and negotiations. So now all the procurements are divided into four categories: works, goods, professional services and non-consulting services.
- Establishment of a Debarment Review Committee (DRC): A new Debarment Review Committee will be formed as per rule 18 to handle debarment processes which will make the sensitive debarment process more transparent and fair.
- Public-Private Partnership (PPP) Alignment: According to rule 151, the procurement of PPP projects will follow PPP guidelines. This alignment with PPP policy will provide a clearer regulatory pathway for PPP projects and shall help to avoid confusion with PPR and PPP.
- Support for Women-owned Enterprises, SMEs, and Startups: As part of sustainable public procurement intiative, provisions have been made in rule 80(1)(gha) to make it easier for the Women-owned Enterprises; small & micro enterprises and new enterprises to win the race of competition to get public procurement contracts.
- Procurement Strategy: The PEs are now required to prepare procurement strategy as per rule 24. This is in addition to preparation of Annual Procurement Plan (APP).
- Compulsory publication of Annual Procurement Plan (APP). on eGP portal.
- Tender validity period: Previsouly normal range was 60-120 days and now normally allowed tender Validity Period is 60-150 days. The Procuring Entities now bound to complete evaluation and issue Notification of Award within Tender Validity Period.
- Introduction of few new committees e.g. Enlistment Committee, Tender Cancellatio Committee. The previous committees are also in effect, those are: Tender Opening Committee, Tender Evaluation Committee, Estimate Committee, Enlistment Committee, Technical Sub-Committee etc. These committees play vital role to ensure accountability in procurement process.
- Introduction of Reverse Auction as a procurement method in rule 95 for procurement of standard goods. Electronic system will be used to procure simple standard goods using online reverse auction process.
Introduction of e-procurement system known as
e-GP portal is a great success of PPR.
~ Frequently used
acronyms of PPR 2008.
~ Definitions of the
terminologies of PPR 2008.
~
Tips for writing Technical Specifications of Goods.