Bid/No-Bid
Bid/No-Bid Decision
Procurement ConceptsDefinition
A bid/no-bid decision is the structured evaluation process contractors use to determine whether pursuing a specific RFP is worth the investment of time and resources. A disciplined bid/no-bid process is one of the strongest predictors of a contractor's win rate.
Most successful government contractors win 30-50% of the opportunities they bid on — and the main reason their win rate is that high is because they're selective about which opportunities they pursue. Bidding everything is a recipe for exhaustion and low win rates.
Common bid/no-bid criteria include: Do we have relevant past performance? Do we meet the mandatory qualifications? Do we have (or can we get) the required certifications? Is the contract size right for our company? Do we have a relationship with the agency? Is the incumbent vulnerable? Can we price competitively and still make margin?
A simple scoring matrix (green/yellow/red on each criterion) can systematize the decision. If you have more reds than greens, pass on the opportunity and save your resources for a better fit.
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