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Federal Contracting Glossary

Bid / No-Bid

The structured decision to pursue (or pass on) a specific opportunity, based on win probability and the cost of proposing.

Definition

A bid/no-bid decision is the structured assessment of whether to commit time and money to pursuing a specific opportunity. Strong capture and proposal teams run bid/no-bid before any drafting — scoring the opportunity on factors such as strategic fit, win probability, contract economics, capacity, and competitive position. It is the key gate in the capture management lifecycle.

Disciplined bid/no-bid materially improves win rate. Teams that pursue everything dilute proposal quality across too many opportunities; teams with rigorous filters concentrate effort, and capture investment, on the pursuits they can credibly win.

How this affects your proposal

Use a 5-7 criterion scoring framework (strategic fit, win probability, economics, capability fit, capacity, competition, contract terms). Score each opportunity quickly; only bid when the weighted score clears your threshold.

Common questions about bid / no-bid

What is a realistic win-rate target for federal proposals?

With disciplined capture and bid/no-bid, sustainable win rates of roughly 25-40% are achievable, and higher on incumbencies. Consistently low rates often signal weak qualification rather than weak writing.

How long should a bid/no-bid take?

Typically 1-2 hours for an experienced reviewer using a structured framework. The output is a clear go/no-go plus, if "go," a high-level win strategy and a capture/proposal resource plan.

Related terms

Request for Proposal (RFP)

The formal solicitation an agency issues inviting proposals in a negotiated procurement…

Evaluation Factors (Section M)

The published factors and subfactors an agency uses to evaluate proposals and select fo…

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See all federal contracting terms in the GovCon glossary, or read our long-form federal contracting guides.