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Glossary · Procurement

What is a bid/no-bid decision?

A bid/no-bid decision is the deliberate judgement, made before any writing starts, about whether an opportunity is worth pursuing. It weighs fit against the requirement, how well placed any incumbent is, realistic win probability, the cost of bidding and what else that effort could be spent on.

In practice

Teams that do this formally bid less and win more. A short scored checklist — do we meet every mandatory requirement, do we know the buyer, is there an incumbent, can we deliver at a price that works, do we have the evidence on hand — is enough. The decision needs an owner who is allowed to say no, or it becomes a formality.

Where it fits in a build

Any organisation bidding more than occasionally. It is also the cheapest possible improvement to a bid process: it costs an hour and can save three weeks.

Common mistakes

  • Bidding to stay visible with a buyer, which is an expensive way to be remembered as the supplier who never wins.
  • Deciding after the effort has already been spent.
  • No record of why past bids were declined, so the same marginal opportunities are argued about every time.

Working on something that involves this?

ASTACKRA designs and builds AI systems, automation and custom software for businesses that need technology shaped around their own workflow. If this term turned up in a proposal and you want a straight answer about whether it applies to your situation, ask us — no obligation, and we will tell you if the answer is no.

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