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Bid/No-Bid Analysis

The bid/no-bid analysis process provides an information-driven alternative to what might otherwise be an emotionally based decision to pursue a project.


When considering the viability of a federal or government contract proposal, contractors have historically lacked any formalized process for making a decision. Instead, decision-makers tend to trust their instincts for whether they should submit a proposal on any given project.


This process provides a consistent and reliable alternative to replace or reinforce a gut-level business decision.

What Is Bid/No-Bid Analysis?


Choosing to pursue a government contract means undertaking a complex process that may involve prequalification, preparing a detailed and extensive cost estimate and responding to a request for proposal (RFP). This process can be extremely time-consuming and require a significant cost and time investment.


If you utilize the services of a professional proposal management firm, you can significantly reduce the resources necessary to prepare and submit a responsive proposal. However, as those services still require a cost investment, it is imperative that companies choose carefully which projects to pursue.


The formal analysis provides a formal, information-based process for choosing which projects to pursue.

Bid/No-Bid Analysis Considerations


The bid/no-bid analysis process may consider any number of variables, depending on the client, the project and the contracting entity. Some of the most important considerations include:


  • Likelihood of contract award based on stated evaluation criteria

  • Cost of bidding on the project

  • Potential profitability of the project

  • Potential risks of the project

  • Financial capacity and sincerity of the contracting entity

The analysis must also consider whether the client has the historical data to support a responsive estimate and the resources to complete the project successfully.


Finally, the analysis should consider how closely the project aligns with the client’s mission, formal objectives and goals (short-term, mid-range and long-term).

To learn more about understanding the RFP requirements during the bid/no-bid analysis process, check out our blog about Dissecting Submission and Evaluation Criteria of an RFP.

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Using a Proposal Manager for Bid/No-Bid Decisions


Clients who have never adopted a formalized analysis process often have no idea where to start or how to establish a process of their own.


As seasoned proposal management experts, Meridian West Consultants can provide the basis for the analysis process and work with the client’s decision-makers to determine the viability of any given project.


Often, clients don’t realize what factors motivate them to make a decision to pursue a contract. When decisions are made based on politics, ego or hubris, the outcome can be costly — or even potentially devastating — to a small or mid-size firm. A truly objective analysis can help identify any potentially damaging motivations a client may be inclined to follow.


The analysis process is also highly effective for helping clients through the learning curve that will advise future decisions. Ultimately, by using the tools and processes introduced by the Meridian West team, clients may elect to develop their own analysis procedure in the future.


For many clients, however, our team consults during the bid/no-bid analysis process for every project they consider.


Contact Meridian West Consultants today to learn more about how the bid/no-bid analysis can benefit your business.

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