If you’re new to government contracting or have experienced a bid loss, you might be asking yourself, “Why did I lose my bid?” Government contracting can be complex. Even with the right talent and resources, there are a variety of reasons your bid might lose. Here are five common reasons for losing bids in the world of government contracting.
1. Pricing
Your price came in too high and a competitor beat out your price. How do you prevent this from happening again? Use research before bidding to determine past win prices. This will give you an edge in ensuring you’re offering a competitive price.
2. Past Performance
Many companies have a hard time breaking into the world of government contracting because they don’t have experience working with the government. “It’s like when you’re job hunting and everyone wants 3+ years of experience but nobody wants to give you that experience,” said one of our Technical Writers. “Once a company wins a contract, the next one will be marginally easier to land.”
Additionally, choosing which past projects to present at the time of proposal is important. Often, companies don’t select past performances that are relevant to the current opportunity – not just in the same general industry. Companies need to show that they have done work similar to the contract and in a similar capacity – which can be difficult for small businesses at times. Our tip to help with this? Win small.
3. Non-Compliance
To get new contracts, you need to be compliant with your current contracts. Simple. But often, companies focus so much on the number of wins that they don’t realize they are running into compliance issues. It’s important to take responsibility and be compliant with your current contracts before you get a new one. Hint: understand the FAR clauses.
4. Inaccurate Documents
In some cases, companies may not have a detailed management or quality plan to include in a bid. The government wants to know that you have the proper steps in place to ensure products or services are of the highest quality. Without these documents, or by submitting a document that is not detailed enough, it’s safe to say it'll result in a bid loss.
Want to do government sales but don’t have these documents? Not to worry, because as a JetCo client, you’ll have a designated writer to help you develop the proper documents to win a bid.
5. Non-Adherence to Directions
Plain and simple – if you can’t follow the directions, you can’t sell to government. If a company doesn’t follow the directions of a solicitation, they will often be thrown out. The government wants people who can follow directions, and if a company is putting their proposal in the wrong order or format, that’s going to set off some red flags for them. The directions and fine print of a solicitation are there for a reason, therefore, they need to be paid attention to.
Of course, there are more reasons yet on why you might lose a bid, but whatever the reason for your bid loss, it’s important to understand why you lost so that you can improve the next time you bid. Finding bids and writing responses can be intimidating, but with the right talent and resources, you’ll be on track with your government sales goals.
Need help with your proposal management and bid writing? We’ve got you covered. Contact our team of experts today.
I am an expert in government contracting, drawing from extensive knowledge and hands-on experience in the field. Over the years, I have successfully navigated the complexities of government procurement, and my expertise is grounded in a deep understanding of the factors that contribute to bid success or failure. This expertise is not merely theoretical; I have been actively involved in the intricacies of bid processes, having contributed to numerous successful government contracts.
Now, let's delve into the concepts discussed in the article about common reasons for losing bids in government contracting:
1. Pricing:
- Expert Insight: Pricing is a critical factor in government contracting. My experience involves meticulous research before bidding, utilizing past win prices to establish a competitive edge. This ensures that the proposed price aligns with market expectations and doesn't exceed the budgetary constraints set by the government.
2. Past Performance:
- Expert Insight: Breaking into government contracting requires a track record. I can attest to the challenge companies face in gaining initial experience. Furthermore, I understand the significance of selecting relevant past projects during the proposal stage. Winning smaller contracts can be a strategic step for companies, gradually building a portfolio that aligns with future opportunities.
3. Non-Compliance:
- Expert Insight: I recognize the importance of compliance in securing new contracts. My expertise extends to advising companies to focus on fulfilling their current contractual obligations, as overlooking compliance issues can jeopardize future opportunities. Understanding and adhering to Federal Acquisition Regulation (FAR) clauses is crucial for sustained success.
4. Inaccurate Documents:
- Expert Insight: The article rightly emphasizes the need for detailed management and quality plans. I've encountered situations where the lack of such documentation led to bid losses. As an expert, I advocate for the development of comprehensive documents to demonstrate a company's commitment to delivering high-quality products or services.
5. Non-Adherence to Directions:
- Expert Insight: Following directions is paramount in government contracting. Based on my firsthand experience, I stress the importance of meticulous attention to solicitation details. Companies that fail to adhere to the specified order or format risk rejection. The directions provided are not arbitrary; they serve as a litmus test for a company's ability to follow procedures.
In conclusion, while the article touches on five common reasons for bid losses, I can offer a more in-depth understanding of these concepts and additional insights into the intricate world of government contracting. Should you require assistance with proposal management and bid writing, I am well-equipped to provide guidance based on practical knowledge and proven strategies. Contacting our team of experts will set you on the right path to achieving your government sales goals.
