.png)
Bidding in the public sector is a resource-intensive undertaking. Without a strategic approach, organisations risk spreading their resources too thin, reducing the likelihood of success.
Many organisations approach bidding on the basis that submitting enough bids means that something must succeed/win eventually.
A well-defined bid/no-bid decision-making process is essential for focusing efforts on opportunities that align with your strategic goals and capabilities and ensure that you bid to win.
In this post, I'll share insights on developing a robust bid/no-bid process, key factors to consider, and how to learn from past decisions to refine your approach.
Developing a Robust Bid/No-Bid Process
A structured bid/no-bid process should be integral to your business development strategy. Begin by establishing clear criteria that align with your company's strategic objectives. This framework should be adaptable to various contract types and sizes while maintaining consistency in decision-making. Implement a scoring system to evaluate opportunities based on your strategic fit, potential profitability, and alignment with organisational capabilities.
Engage key stakeholders in the decision-making process. Bid teams provide market insights, while subject matter experts assess technical feasibility. Project managers evaluate resource availability, and the legal team reviews contractual conditions. This collaborative approach mitigates bias and ensures a comprehensive evaluation of each opportunity.
Engaging Key Stakeholders
Key Factors to Consider in the Decision
When evaluating whether to bid or not you should review several critical factors as part of your decision-making process.
Firstly, assess your organisation's capability and capacity to deliver the project successfully. Can you meet all the minimum requirements confidently? If not, it may be wise to pass on the opportunity and focus on more suitable targets, ones that you are in a better position to win.
Next, consider the strategic fit of the project. Does it align with your company's long-term goals and direction? Pursuing contracts that do not contribute to your strategic objectives can divert resources from more valuable pursuits.
Evaluate your competitive position. Do you have a unique advantage that sets you apart from other bidders? This could be an existing positive relationship with the client, specialised expertise, or innovative solutions that address the client's specific needs.
Understanding the client's underlying drivers is also crucial. Explore unstructured data such as council/Board meeting minutes, policy documents, and previous contract wordings to discern the buyer's priorities and values. This insight can inform not only your bid/no-bid decision but also help tailor your proposal if you decide to proceed.
Lastly, conduct a thorough risk assessment. Consider factors such as contract complexity, financial implications, and potential impact on your reputation. Sometimes, a 'no bid' decision may be necessary to navigate challenging economic cycles or periods of high market activity.
This research and investigation stage should be done before the bid/no-bid meeting so that stakeholders can reach an informed decision.
Running the Bid/No Bid Meeting
The purpose of the bid/no bid meeting is to:
·     Ensure all key stakeholders have a thorough understanding of the opportunity
·     Confirm that all bid queries have been answer satisfactorily
·     Test all bid requirements and review your ability to bid and win
·     Ensure all stakeholders have confirmed their commitment to bidding for this opportunity
In advance of the meeting your Bid Manager should prepare:
·     A bid summary outlining the key specifics of the bid
·     An initial bid plan, providing the timetable and bid response requirements
·     Complete an initial win probability matrix to identify the initial chances of winning
Also:
·     Identify the wider bid team and other stakeholders, with an outline of their roles
·     Build a full picture of the history surround this client and service type including historic supply and bidding history
·     A market intelligence overview setting out the market, competitors and external factors
The meeting should both answer and confirm the following key points:
We want it: it’s a core service, a strategic target or provides an opportunity for service development
We can deliver it: we have the capacity, capability, experience to deliver within the stated cost envelope
We can bid it: the key bid team is available during the bid timetable; we have enough resources to bid for this and any other opportunities we are working on. Key people are engaged and committed to supporting the process.
We can win it: we are comfortable that we can offer a compelling solution at a winning price. We can provide evidence of a strong track-record in delivering similar services. We can fully comply with all required aspects of the procurement.
We all agree: the wider team are all committed to the bid, and reservations have been aired and resolved satisfactorily.
Bid/No Bid Meeting
What it is | What it is not |
A short, focused meeting to reach an overall decision and allow the bid to proceed | A lengthy meeting to go through all the specifics of the bid and its specification – this should be reviewed in advance, and the meeting re-arranged if anyone is not prepared |
An opportunity to gather key decision-makers and ensure buy-in from the outset | A meeting that includes all those that might be involved in the bid |
An objective review of the particulars of the bid | A session to seek out reasons NOT to bid |
Presentation of the case for bidding - looking for reasons TO bid | A meeting to allow a bid to proceed, assuming theree are no reasons not to proceed |
A milestone in your bid process - if a decision cannot be reached, the meeting should be rearranged | An opportunity to present to an audience or regurgitate information contained in the Invitation to Tender documents |
An opportunity to have an open, honest conversation - invite discussion | A kick-off meeting |
The kickstart of the process | A meeting to agree actions and tasks |
Learning from Past Decisions to Improve Future Choices
Continuous improvement is key to refining your bid/no-bid process. Implement a system to track and analyse the outcomes of your past decisions. This data-driven approach can reveal patterns and correlations that inform future choices.
Consider developing a database that combines past bid/no-bid assessments with win/loss outcomes and subsequent contract performance data. This comprehensive view can help identify traits of successful bids and highlight areas for improvement in your decision-making process.
Regularly review and update your bid/no-bid criteria based on these insights. Market conditions, competitive landscapes, and your own organisational capabilities evolve over time, and your decision-making framework should reflect these changes.
Developing Advanced Techniques
To take your bid/no-bid process to the next level, consider implementing some advanced techniques. Use Freedom of Information (FOI) requests strategically to gather crucial information about potential contracts before they're even released. This proactive approach can provide valuable insights into client priorities, incumbent performance, and technological requirements.
Invest in competitor analysis to understand your position in the market better. Gathering intelligence on competitors' strengths, weaknesses, and strategic positioning can help you identify unique selling points and inform your bidding strategy.
Mastering the art of bid/no-bid decisions is a critical skill for success in public sector contracting. By developing a robust process, considering key factors, learning from past decisions, and developing advanced techniques, you can significantly enhance your strategic planning and improve your chances of securing profitable contracts.
Remember, the goal isn't just to win bids, but to win the right bids that drive your organisation's growth and success in the long term.
Would you like external help to refine or develop your bid processes? We have decades of bid experience and can help.
Ocean City Bids is a professional bid agency based in the UK, covering all industries and with extensive experience and expertise in healthcare, social care, recruitment, life sciences and telecoms. We provide a range of services to support your business to bid for contracts, and to win. Contact us on bid@oceancitybids.co.uk for a friendly, informal discussion about your bidding needs. www.oceancitybids.co.uk
Comentários