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1. Executive Summary
Making a Logical Bid or No Bid Decision
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.
3. 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.
4. Negotiate the Deal - based on your assessment, negotiate favorable terms.
© 2009 Demand Metric Research Corporation