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Solicitations, proposals and contract management

Bid/No-Bid (Bid/No-Bid Decision)

Bid/No-Bid stands for Bid/No-Bid Decision. A bid/no-bid decision is your company's call on whether to spend time and money responding to a solicitation. It weighs your fit with the scope, your capacity to do the work, the competition, the risk and your realistic chance of winning.

Many companies use a short scorecard: Can we do this? Can we price it to win and still profit? Do we meet every requirement, such as licenses, bonding and set-aside status? Do we have relevant past performance?

Why it matters to a small contractor

Saying no is a skill. Chasing every posting spreads you thin and produces weak proposals. Focus on work in your trade, within a drive you can cover, at a size you can staff, where the evaluation method suits your strengths.

Example

A janitorial company reviews an RFP for a 400,000-square-foot hospital. It lacks healthcare cleaning past performance and would need 40 new hires in 30 days, so it decides no-bid and instead looks for a subcontracting role with the likely primes.

Bid/No-Bid: common questions

When should I make the decision?

As early as possible, ideally at the sources sought or presolicitation stage, and confirm it once the final solicitation is released.

What are common no-bid reasons?

Missing required licenses or bonding, a strong incumbent with a hard-to-beat price, a scope outside your trade, or a deadline too short to prepare a quality response.

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