NEWSLETTER:
The Business of A/E/C Marketing & Proposals

By: Melba Romero, Proposal & Grant Writing Generalist
Email: mromero@blackpearlpublications.com
Phone: 210-878-9978

Making the Go/No-Go Decision: Crucial Elements for Pursuing RFPs/RFQs - Issue #7

Hey there, marketing & proposal rockstars!

The decision to pursue a Request for Proposal (RFP) or Request for Qualifications (RFQ) opportunity is one of the most strategic choices an organization can make. With limited resources and the significant investment required for proposal development, companies must carefully evaluate each opportunity before committing. Here aresome of the crucial elements to consider when making this important go/no-go decision.

Strategic Alignment

Before diving into the specifics of any opportunity, assess its alignment with your company's strategic goals. Does the project fit with your core competencies? Will it advance your market position or help you enter a targeted sector? Pursuing opportunities that align with your strategic direction increases the likelihood of both winning and successful delivery.

Customer Relationship

Your existing relationship with the prospective client significantly impacts win probability. Consider:

• Previous work history and performance
• Established trust and communication channels
• Level of access to decision-makers
• Understanding of their business challenges

Organizations with strong incumbent relationships can be difficult to displace, so evaluate this factor honestly.

Competitive Landscape

Understanding who you're competing against is critical. Assess:

• Number of competitors expected to bid
• Your competitive advantages and differentiators
• Whether the client has a preferred supplier or incumbent
• If the RFP appears to be written with a specific provider in mind

A large competitive field with strong incumbents may signal a lower win probability.

Win Probability Assessment

Develop a realistic evaluation of your chances of winning. This should consider:

• Existing customer relationships
• Price competitiveness
• Technical capability match
• Past win rates with similar clients and projects
• Client's selection criteria and weighting

Many successful organizations establish minimum threshold percentages for proceeding with a bid.

Resource Requirements

Evaluate the resources needed for both proposal development and project execution:

• Proposal team availability and expertise
• Technical Subject Matter Experts (SMEs) availability
• Implementation team capacity if awarded
• Financial resources required for bid development

Ensure you can deliver excellence in both the proposal and the actual project.

Financial Considerations

Beyond the immediate contract value, assess:

• Profit margin potential
• Payment terms and cash flow implications
• Long-term revenue potential
• Cost of bid development relative to contract value
• Potential for follow-on work

High-value opportunities with potential for ongoing revenue streams typically warrant greater pursuit investment.

Risk Assessment

Evaluate potential risks including:

• Contract terms and conditions
• Technical complexity
• Schedule feasibility
• Resource constraints
• Political or economic factors
• Geographic considerations

Projects with manageable risk profiles are generally more attractive pursuit candidates.

Formalized Decision Process

Implementing a structured go/no-go decision framework helps organizations make consistent, data-driven choices. This typically includes:

• Scoring criteria for each evaluation factor
• Weighting of factors based on organizational priorities
• Threshold scores for proceeding
• Executive review for final approval
• Documentation of decisions for future reference

This approach reduces emotional decision-making and creates institutional knowledge for future opportunities.

Timing Considerations

The timing of an opportunity relative to your organization's current workload and capacity is crucial:

• Can you respond thoroughly within the deadline?
• Will pursuing this opportunity prevent bidding on other opportunities?
• Does the client's timeline align with your availability?

Sometimes delaying pursuit until a more favorable time can be the wisest choice.

Conclusion

The go/no-go decision should be deliberate, data-driven, and aligned with organizational strategy. By systematically evaluating these crucial elements, companies can focus their resources on the most promising opportunities, increasing both win rates and profitability. Remember that sometimes the most profitable decision is to say "no" to opportunities that don't meet your strategic criteria—freeing resources for better-fit pursuits that offer greater chances of success.

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For interest in personalized consulting in the use of AI or with crafting winning proposals, reach out today!

Melba Romero - 210.878.9978 or email to: mromero@blackpearlpublications.com

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