DHAKA, May 12, 2026 (BSS) - The Bangladesh Public Procurement Authority (BPPA) has issued a new circular aimed at ensuring greater transparency, accountability and fair competition in government procurement activities.

The circular was recently issued by the Implementation Monitoring and Evaluation Division (IMED) under the Ministry of Planning to curb the growing tendency of abnormally low bidding in public tenders.

According to the circular, if a bidder's quoted price appears to be unusually low, the procuring entity must seek detailed explanations and supporting information from the bidder.

At the same time, the bidder's financial strength, technical expertise, previous experience and implementation capacity must also be thoroughly assessed.

The new directive seeks to ensure that contracts are not awarded solely on the basis of the lowest price, but rather on the overall capability of the contractor.

The circular noted that in many government procurement processes, bidders often submit tenders with unrealistically low prices. 

As a result, concerns arise over the quality of work, while project delays, substandard implementation and additional costs frequently emerge during execution.

Such irregularities have long been a major concern, particularly in construction and infrastructure projects.

The circular further stated that maintaining fair competition in public procurement requires special caution regarding "significantly low-price tenders."

In many cases, some firms secure contracts by quoting very low prices, but later seek additional funds during project implementation or use inferior materials. This not only wastes public money but also undermines public interest.

The government has already introduced the electronic government procurement (e-GP) system to ensure transparency in public procurement. Through this system, tender invitation, submission and evaluation are conducted online.

However, despite the technology-based system, some dishonest firms still attempt to win contracts through abnormally low bids using various tactics. The new circular emphasizes stricter monitoring to address these issues.

Under the directive, procuring agencies have been instructed not to accept bids that are significantly lower than prevailing market prices without proper scrutiny.

If necessary, written explanations must be obtained from bidders, and decisions should be made through realistic analysis and verification.

It is expected that the new measures will increase participation of competent and qualified firms in project implementation.