No-Bid Letter definition
A no-bid letter is a letter to the organization that invited you to bid or submit a proposal, notifying them that you will not do so. To remain potentially involved in future opportunities, the provider should state in the no-bid notice the reasons for declining such an invitation.
Before even writing a no-bid letter, you have to decide not to bid. This decision is the result of an analytical process, the bid/no-bid analysis, also called the bid/no-bid decision process.
The no-bid letter is sent after having performed a bid/no-bid analysis. The bid/no-bid analysis assesses (quantitatively, qualitatively, or both) all risks inherent in submitting or not submitting an offer. The analysis process relies on building a list of relevant questions, called the bid/no-bid checklist. On the basis of this checklist, a bid/no-bid analysis matrix will be created, which will determine the worth of sending a bid. If the decision is to bid, a letter of intent will be sent to the purchasing officer. If the decision is not to bid, then a no-bid letter, explaining the reasons, will be sent.
How to stay in the Bidders List
The no-bid letter is the critical factor in remaining on the bidders list, and thus ensures future business opportunities. For the contracting officer who sent you the invitation to bid, the no-bid letter demonstrates that, while you are not interested in bidding for a particular project for specific and valid reasons, you are still interested in competing for future opportunities, and want to stay on the prospective bidder list. This is why it’s important to take the time to write a professional no-bid letter.
How to write a No-Bid Letter
It is highly recommended that you read the recommendations below in order use the no-bid letter template properly and successfully.
- Use a formal letterhead. Do not handwrite your no-bid letter.
- First, your no-bid letter should thank the person who sent you the invitation, for showing interest in the solution your organization is marketing.
- Next, state the reasons why you are not proposing an offer or bidding. Be specific regarding these reasons. The best way to discover valid, thus acceptable reasons not to bid is to perform a bid/no-bid analysis. This step is the critical factor in remaining on the list of prospective providers.
- Reiterate that you are still interested in being kept informed about new business opportunities, for which your solution may be well suited, or best suited.
- Finally, end the letter formally (with sincerely, for example, or a similar polite expression). Sign your name and indicate your title. Be sure to provide correct and complete contact and reference information for future correspondence.
- Before sending it, make sure your no-bid letter is tactful, respectful, and goes straight to the point.
- Send the no-bid letter via registered mail. It has to be received before the bid/proposal opening date.
- Since things sometimes are a little more complicated, remember to consult a lawyer for information before doing anything.
The No-Bid Letter is also known as: no bid letter, no-bid decision letter, RFP declination letter, IFB declination letter, no-bid notice, intent to no-bid letter, no-bid response.