A bid/no-bid decision is the point where you decide whether to spend time and money responding to a solicitation. You weigh fit, eligibility, capacity, competition, profit and risk against the effort the response will take. A good decision is quick, written down, and made before serious work begins. Saying no to weak bids frees your team to do better work on strong ones.
Why the decision matters
Every response takes hours from people who also run the business. A response to a bid you were never likely to win costs the same effort as one you could win.
A clear decision process keeps you from chasing everything that looks close. It also makes it easier to explain why you passed on a bid.
The goal is not to bid less. The goal is to put your best effort where it has a real chance, and to stop quietly losing time on long shots.
The core questions
- Fit: is this work we already do well, at a size we can handle?
- Eligibility: do we meet every mandatory requirement, license, certification and set-aside rule?
- Capacity: do we have the people, equipment and bonding to deliver if we win?
- Time: can we write a complete, compliant response before the deadline?
- Customer: do we know this agency, its needs, or the people involved?
- Competition: who held this contract before, and is there a strong incumbent?
- Profit and risk: can we make a fair margin under these terms, insurance levels and payment schedule?
A simple scoring method
Turn the questions into a short scorecard. Rate each one on a small scale, such as one to five, and note any item that is an automatic no, such as a missing license.
- Do the quick read of the solicitation and fill in the scorecard.
- Mark any hard stops. One hard stop is enough for a no.
- Total the remaining scores and compare against a line your team agreed on in advance.
- Write one or two sentences on why you chose bid or no-bid.
- If the answer is bid, assign an owner, a schedule and a review date.
Signs a bid may be a poor fit
None of these is always a no, but each one deserves a hard look. When several show up together, the odds are usually against you, and the time may be better spent on the next bid.
- The specifications closely match one competitor's product or method.
- The deadline leaves too little time for a quality response.
- You learned about it late and missed the pre-bid meeting or question period.
- The scope or contract terms carry risk you cannot price.
Revisit the decision
A bid decision is not final until you submit. An addendum, an answer to a question, or news about the incumbent can change the picture. Check your scorecard again at key points.
Set a firm date for the final go or no-go, such as a few days before the deadline, so the team is not still debating while the response should be in review.
Over time, compare your decisions with outcomes. Patterns in your wins and losses will show where your scorecard needs adjusting. BotBid scores fit for each bid it finds, which can help you sort a long list, but the decision stays with your team.
Common questions
Who should make the bid/no-bid decision?
Someone who can commit the company's time and money, with input from the people who would do the work.
Should we bid just to get on the agency's radar?
Sometimes a response builds a relationship, but weigh that against the cost. A short note to the buyer or a capability statement may do the same job for less effort.
How long should the decision take?
For most bids, a focused review of under an hour is enough to decide whether to continue.