Making a Logical Bid or No-Bid Decision

Jesse Hopps

The decision to bid on a contract has profound implications on reputation, profitability, and the allocation of scarce resources. In many cases, these critical decisions are made following an informal assessment, resulting in low-margin or resource-intensive work being performed with associated large opportunity costs. Implementing a formalized decision-making process will help ensure that key considerations have not been ignored. To make the correct decision to bid on an opportunity, download and customize Demand Metric's Bid or No-Bid Assessment.

What are the Key Considerations?

  • Internal Factors - Is there a strategic fit? Does senior management support the decision? Are the resources required to win and deliver in place?
  • External Factors - Is the competition fierce? Does your proposal align with your prospects strategy? Are delivery requirements clearly documented?
  • Risk Considerations - How much risk is involved? Are you comfortable with the technologies required to deliver on the bid? Could this be a disaster?
  • Financial Considerations - Can you afford to pursue the bid? Is price a major consideration in winning the bid? Will the margins be low on this deal?

Action Plan:

    1. Formalize your Decision-Making Process - Use Demand Metric's Steering Committee Charter to establish a committee for evaluating bids.
    2. Evaluate Key Considerations - Use Demand Metric's Bid or No-Bid Assessment to evaluate key considerations. Don't forget to customize the template with considerations that are relevant to your business.
  1. Bid or No-Bid - Make a decision based on the assessment criteria. Provided there is a strategic fit, move forward with the bid. Be sure to closely evaluate any potential 'deal killers', to be prepared for your negotiations with clients.
  2. Negotiate the Deal - based on your assessment, negotiate favorable terms.