Glossary

Go/No-Go (bid decision)

A go/no-go decision, also called a bid/no-bid decision, is the point where a company decides whether to pursue an opportunity, based on its chance of winning, the fit with its capabilities and the cost of competing. Good teams make it more than once: when an opportunity is found, before a proposal starts and when the final solicitation arrives.

By BidAuthorPublished Updated

01Why it matters

Proposals are expensive, and they take the time of the same people who deliver your current work. Bidding on everything lowers both the win rate and the quality of every proposal. A firm decision process lets the team do fewer, better bids.

02Questions to answer

  • Customer: do we know the buyer, their problem and their priorities beyond what the RFP says?
  • Fit: can we do the work well, with people we have or can name?
  • Competitive position: who else will bid, is there an incumbent, and why would the buyer choose us?
  • Eligibility: are we registered and certified as required (see SAM.gov and set-aside), and do we have the past performance the buyer will ask for?
  • Price: can we win at a price that is still profitable?
  • Resources: can we staff the proposal without hurting a better opportunity?
  • Risk: contract terms, liability, financial exposure and delivery risk.

Many teams score each question and set a threshold. The scores matter less than forcing each question to be answered with evidence.

03When the answer is no

Record why, so the reasons inform the next decision. If the opportunity matters strategically, consider joining another bidder's team as a subcontractor (see teaming agreement) or answering the RFI to influence the next round. If the answer was go and the solicitation then changes in ways that remove your advantage, make the decision again rather than finishing out of momentum.

Go/No-Go: common questions

What is Pwin?

Probability of win: a team's estimate of its chance of winning, used in the bid decision and to rank the pipeline. It is a judgment, so record the evidence behind it.

When should a team decide not to bid?

When the evidence says you are unlikely to win or the contract is not worth winning: no insight into the customer, a strong incumbent the customer is happy with, missing eligibility or capability, or a price you cannot meet profitably.

How often should the bid decision be made?

At least three times: when the opportunity is first qualified, before proposal work starts, and when the final solicitation is released.

Sources

  1. FAR 52.204-7 — System for Award ManagementAcquisition.gov
  2. FAR 19.502-2 — Total small business set-asidesAcquisition.gov
  3. Shipley Proposal Guide and Capture GuideShipley Associates

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