Legal Review: Public Procurement (Second Amendment) Act, 2026 Introduces Legal Framework for Outsourcing in Government Procurement
 |
| Photo: Collected |
The amendment focuses on changes to the definitions and procedures governing public procurement, alongside provisions concerning outsourcing-based service procurement, tender evaluation, procurement planning, contract management and participation of local industries.
Legal Recognition of Outsourcing-Based Service Procurement
One of the significant aspects of the amendment is the incorporation of outsourcing-based service procurement into the definitions and regulatory framework of the Public Procurement Act.
Under the amended definition, 'Outsourcing' refers to the procurement of services by a procuring entity through government-listed service-providing organisations, in accordance with the services prescribed under the Act.
This provision establishes a specific legal foundation for obtaining necessary services through outsourcing in government institutions. In other words, outsourcing-based service procurement is no longer confined merely to administrative arrangements; rather, it has been incorporated into the statutory framework governing public procurement.
Transparency and Competition in Public Procurement
The amendment seeks to make the procedures for inviting tenders, evaluating bids and awarding contracts more structured and transparent.
In evaluating tenders, particular importance has been attached to the qualifications, technical capacity, institutional and financial capabilities, and relevant experience of bidders.
Furthermore, provisions have been introduced to ensure compliance with prescribed procedures in relation to abnormally low bids, tender evaluation and procurement-related decision-making.
New Provisions on Tender Evaluation
The amended Act also introduces changes concerning the responsibilities and functions of tender evaluation committees.
Under the revised framework, the relevant committees are required to follow prescribed evaluation criteria when assessing tenders.
Particular emphasis has been placed on examining the technical and financial aspects of bids, preparing evaluation reports and submitting recommendations to the procuring entities in accordance with transparent procedures.
The amendment also addresses the responsibilities of the relevant authorities in relation to the execution and implementation of public procurement contracts.
Participation of Local Industries and Small Entrepreneurs
The amendment places importance on promoting domestic industries, increasing local production and expanding opportunities for small and medium-sized enterprises to participate in government procurement.
Various provisions have been incorporated to protect the interests of local industries and encourage the use of domestically produced goods and services in public procurement.
It also provides scope for considering local participation and strengthening domestic capacity in relevant procurement activities.
Digital Procurement and International Competition
The amendment also introduces changes concerning the e-Government Procurement (e-GP) system, international procurement procedures and methods of inviting tenders.
Where applicable, provisions have been incorporated regarding the use of international competitive bidding procedures, publication of tender notices in international markets and compliance with prescribed conditions governing the relevant procurement processes.
Additionally, the legal framework concerning the preservation and management of procurement-related information has been further strengthened.
Legal Significance of the Amendment
An overall review of the Public Procurement (Second Amendment) Act, 2026 indicates an effort to modernise the government procurement system, enhance competition and accountability, and bring outsourcing-based service procurement within a defined statutory framework.
In particular, the incorporation of outsourcing into the statutory definitions provides a legal foundation for an existing method of obtaining services by government institutions. Consequently, compliance with the amended provisions becomes increasingly important for procuring entities, service-providing organisations and participating bidders in carrying out their respective responsibilities and activities.
However, it is important to clarify that the inclusion of outsourcing-based service procurement in the Act does not automatically mean that every person engaged under an outsourcing arrangement becomes entitled to permanent government employment or acquires the legal status of a government employee. Such entitlements must be determined in light of the applicable recruitment rules, terms and conditions of service and other relevant laws.
Legal References: Public Procurement (Second Amendment) Act, 2026; amended provisions of the Public Procurement Act, 2006. Extraordinary Gazette of Bangladesh, published on 11 November 2026.
BD Law Post/Masum
