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Go / No-Go Decision for a Government Bid

Go No-Go Decision

Making a go/no-go decision for a government Request for Quotation (RFQ) or contract is a crucial step in the bidding process for government contractors. This decision can impact the success and profitability of a business, so it’s important to carefully weigh the potential risks and rewards before proceeding.

Considerations for a Go / No-Go Decision

There are several factors to consider when making a go/no-go decision for a government RFQ or contract. These include:

  • Requirements: Before deciding whether to pursue a contract, it’s essential to thoroughly review the requirements and specifications outlined in the RFQ or contract. This includes evaluating whether your company has the necessary resources, skills, and experience to fulfill the requirements and deliver high-quality work.
  • Viability/Profitability: What is the expected profit margin and return on investment? Does the opportunity meet your profit margin goals for your business? Do you have the finance resources to perform on this opportunity? What are the opportunity costs of deployed assets?
  • Competition: Knowing the level of competition for a contract can help you assess the likelihood of winning and the potential return on investment. It’s also helpful to research the other companies that are bidding and understand their strengths and weaknesses relative to your own.
  • Cost: Calculating the cost of bidding and completing the work is an important step in the go/no-go decision process. This includes not only direct costs like materials and labor, but also indirect costs such as overhead and overhead allocation. It’s important to ensure that the potential profit from the contract justifies the investment of time and resources.
  • Risk: All contracts come with some level of risk, so it’s important to carefully assess the potential risks associated with a specific RFQ or contract. This includes evaluating the financial risk, as well as other risks such as regulatory compliance, security, and reputation.
  • Capacity: It’s essential to consider whether your company has the capacity to take on additional work before deciding to bid on a contract. This includes both the capacity to fulfill the requirements of the contract and the capacity to handle any additional workload that may come with it.
  • Capability: Do you have the experience, subject matter expertise, and technical capability to fulfill the work performance requirements? Do you have a talented proposal team and internal resources to put together a credible bid? Do you need a partner or subcontractor?
  • Timing: The timing of a contract can also be a factor in the go/no-go decision. For example, if the contract requires a quick turnaround or overlaps with other commitments, it may not be feasible to pursue.

Go / No-Go Decision Help

There are several tools and strategies that can help contractors make informed go/no-go decisions for government RFQs and contracts. One useful tool is a go/no-go matrix, which allows contractors to weigh the potential risks and rewards of a contract against each other. Another strategy is to seek the advice of subject matter experts or consultants who can provide valuable insights and perspectives on the contract.

Here are some great tools for your Go / No-Go Decision:

  • RFP 360 – Stay ahead of the curve with request management software. Streamline your complex sourcing and procurement projects with ourevolutionary, full-circle approach to RFP management.
  • UnaNet – Make the Right Go/No Go Decision in Seconds. Download the free 17-point Go/No Go tool to quickly and objectively determine:
    • How likely you are to win a project.
    • Whether the project will support current revenue goals.
    • The project’s potential impact on long-term revenue goals.
  • The RFP Success Company – Podcast that covers:
    • Why it’s crucial to make a go/no-go decision right away
    • The 4 OBVIOUS questions to ask as you decide whether to bid on an RFP
    • Why it’s important to build relationships with potential clients
    • The 3 OVERLOOKED questions to ask as you decide whether to bid on an RFP
    • How to know whether an RFP has been wired for somebody else
    • The 4 FORGOTTEN questions to ask as you decide whether to bid on an RFP
    • What factors to consider in deciding if a client is a good fit
    • Why it’s demoralizing to bid on an RFP you can’t win
  • Utley Strategies – Whether you respond to RFPs or not, a clear Go/No Go process is essential to ensuring you don’t spend too much time on proposals that aren’t likely to win. Figuring out how to make that decision is the hard part, however. To help make it easier, here are thirteen questions you can ask to help you decide if you should send out the proposal.

Ultimately, the go/no-go decision is a balance between the potential risks and rewards of a government RFQ or contract. By thoroughly evaluating the requirements, competition, cost, risk, capacity, and timing of the contract, contractors can make informed decisions that support the long-term success of their business.



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