How to create your bid / no bid process
A bid process is a set of key criteria that defines what opportunities would be suitable for your business. Taking the time to develop the criteria as a well-defined bid /no bid checklist can be the difference in you winning or losing a bid and ensures that valuable resource is only assigned to opportunities that are aligned to your growth plans and you have a realistic chance of securing the contract.
Key considerations when developing your bid / no bid process
Although each business will have its own varying requirements, typical bid / no bid criteria will usually consist of:
Contract value
Contract length
Preferred contract type
Geographical location of the works
Was the opportunity in our pipeline?
Are the services being procured a core activity of our business?
Do we have existing similar contracts that we are able to reference within our submission?
Do we have a positive relationship with the client?
What do we know about the client’s strategy?
Do we meet the minimum criteria outlined within the tender documents?
Do we know how well the incumbent contractor is performing and is the client ready for a change?
What is the commercial risk to our business?
What is the operational risk to our business?
What resources do we have available for the written and pricing submissions?
Are the timescales listed within the tender documentation achievable?
Who are the likely competition?
Who to involve in the process
Although the completion of the tender documents will usually be picked up by the bid and estimating teams, it is vital that a variety of key stakeholders are involved in the bid / no bid process.
Ensure that you have covered all bases when making a bid no / bid decision to ensure that you have factored in the thought process of colleagues who will play a key role in supporting you with the bid. We recommend that as a minimum you have input from your senior management, estimating, operations, commercial and legal teams (where possible) as everyone will have a different opinion on what qualifies as a ‘perfect opportunity’.
Although the bid / no bid process does not always provide you with a ‘set in stone’ decision, it will always open up a debate which will allow you to assess your chances of winning and avoid opportunities that are just not suitable for your business.
When to hold the bid / no bid meeting
The bid / no bid meeting should ideally be held within the first 3 days upon receipt of the tender documents. Take time to go through each document and ensure that you have understood not only the requirements of the submission but any other factors that may influence the decision (for example - the period of time the client is allowing for mobilisation, onerous TUPE lists, amendments to a standard form of contract or commitments within service delivery which may be unachievable). The thorough analysis of all risks will help form a correct bid / no bid decision and should ensure that you are only pursuing opportunities that are right for you.
From experience, the most prudent organisations will re-visit the bid / no bid documents during the mid-bid meeting to ensure that there have not been any fundamental changes made to the tender documents which may impact the initial decision.
Summary
Although many businesses will bid on a contract due to a gut instinct or the ambition to secure a high-value contract, bear in mind that every opportunity that comes to market won’t be right for your business. A robust bid / no bid process can reduce the amount of bids submitted ensuring that you are focussing on opportunities that will be a good fit for you and will support your growth plans.