Beginner Procurement Guide
Bid/No-Bid Decision Checklist
Use this bid/no-bid decision checklist to evaluate government tender opportunities. A step-by-step framework with criteria to decide whether to pursue or pass on a contract.
Introduction
Every government contractor faces the same challenge: limited resources and unlimited opportunities. The difference between successful and struggling contractors is knowing which opportunities to bid on. A structured bid/no-bid framework helps you decide consistently and objectively.
Why It Matters
| Factor | Without Framework | With Framework |
|---|---|---|
| Decision Driver | Emotion | Objective criteria |
| Win Rate | 15-20% | 30-50%+ |
| Resource Efficiency | Poor | Focused |
NorthStar IT
NorthStar IT implemented a scorecard and their win rate increased from 15% to 35% within six months.[/Example
]
Stage 1: Pass/Fail Mandatory Checks
- ✓Meet ALL mandatory requirements?
- ✓Eligibility confirmed?
- ✓Submission timeline feasible?
- ✓Bonding/insurance available?
- ✓Security clearance (if needed)?
- ✓Conflict of interest clear?[/Checklist
]
Warning
If any mandatory check fails, do not bid. Bids missing mandatory requirements are rejected without evaluation.[/Warning
]
Stage 2: Score Against 10 Criteria
Score 1-5 on each:
- ✓1. Strategic Alignment (15%)
- ✓2. Capability Fit (15%)
- ✓3. Competitive Position (15%)
- ✓4. Profit Potential (15%)
- ✓5. Resource Availability (10%)
- ✓6. Customer Relationship (5%)
- ✓7. Risk Level (10%)
- ✓8. Timeline Feasibility (5%)
- ✓9. Past Performance Relevance (5%)
- ✓10. Learning Value (5%)[/Checklist
]
Stage 3: Decision Thresholds
| Score | Decision | Action |
|---|---|---|
| 4.0-5.0 | Strong Bid | Proceed with full proposal |
| 3.0-3.9 | Consider | Bid only with clear advantage |
| 2.0-2.9 | Weak Bid | Only if capacity available |
| Below 2.0 | Do Not Bid | Pass |
Common Mistakes to Avoid
- ✓Optimism bias: Overestimating your chance of winning
- ✓Sunk cost fallacy: Continuing due to time already invested
- ✓Fear of missing out: Bidding due to FOMO
- ✓Excitement bias: Falling in love with the project
- ✓Revenue desperation: Bidding out of need[/Checklist
]
Summary
A bid/no-bid framework focuses your resources on winnable opportunities. Use the scorecard for every tender, track your results, and refine over time. Use ContractFinder.ca to find a steady pipeline of opportunities to evaluate.
Frequently Asked Questions
How long does a bid/no-bid evaluation take?
1-2 hours: 5 min pass/fail, 30-60 min scoring.
Should I ever bid on a low-scoring opportunity?
Occasionally for strategic reasons, but make exceptions consciously.
How often should I update my scorecard?
Review and refine quarterly based on results.
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