Making A Logical Bid No Bid Assessment

1. Making A Logical Bid No Bid Assessment Executive SummaryMaking a Logical Bid or No Bid DecisionThe decision to bid on a contract has profound implications on reputation,profitability, and the allocation of scarce resources. In many cases, these criticaldecisions are made following an informal assessment, resulting in low-margin orresource-intensive work being performed with associated large opportunity costs.Implementing a formalized decision-making process will help ensure that keyconsiderations have not been ignored. To make the correct decision to bid on anopportunity, download and customize Demand Metrics Bid or No-Bid Assessment.What are the Key Considerations? • Internal Factors - Is there a strategic fit? Does senior management support the decision? Are the resources required to win and deliver in place? • External Factors - Is the competition fierce? Does your proposal align with your prospects strategy? Are delivery requirements clearly documented? • Risk Considerations - How much risk is involved? Are you comfortable with the technologies required to deliver on the bid? Could this be a disaster? • Financial Considerations - Can you afford to pursue the bid? Is price a major consideration in winning the bid? Will the margins be low on this deal?Action Plan: 1. Formalize your Decision-Making Process - Use Demand Metrics Steering Committee Charter to establish a committee for evaluating bids. 2. Evaluate Key Considerations - Use Demand Metrics Bid or No-Bid Assessment to evaluate key considerations. Dont forget to customize the template with considerations that are relevant to your business. 3. Bid or No-Bid - Make a decision based on the assessment criteria. Provided there is a strategic fit, move forward with the bid. Be sure to closely evaluate any potential deal killers, to be prepared for your negotiations with clients. 4. Negotiate the Deal - based on your assessment, negotiate favorable terms. © 2009 Demand Metric Research Corporation