If you are like most small business owners, time is your most valuable commodity, so responding to one RFP after another with poor results can really have an impact on your business. One of the services we provide for our clients is the implementation of a GO/NOGO process that permits companies to focus exclusively on bids and proposals that they have the best chance of winning.
The first thing you need to consider is your firm’s capacity. What is the best size project for your company in terms of size, scope and location that fits into your current business model? Knowing how government agencies tend to evaluate bidders, I also recommend focusing on the last three largest projects that your firm has successfully completed and coming up with an average. Realistically if the largest projects that your firm completed averages out to be around $100K, then you should be focusing on projects in that range.
The next consideration when determining what projects to bid on is does your firm meet all the bidder prerequisites and requirements. For example, on many government bids you need a certain level of experience, management, infrastructure and resources. You want to be realistic about what you can and cannot do. If you don’t meet all the requirements – know it’s not likely that you will be successful in the bidding process.
Sometimes having some work is better than having no work, so another strategy that we recommend is teaming, sub-contracting and joint venture relationships. This can be a great way for small firms to gain the experience necessary to expand and add the resources needed to successfully win government contracts.
The bottom line is that you need to be strategic about what projects you bid on, and you need to consistently evaluate results. If you are regularly unsuccessful in the bidding process – you need to find out why. We recommend debriefing on all projects and adjusting accordingly.
