Decision Time: Respond or Not?

April 13, 2006

	Visited: 103
	Not rated
	Rate:

How can you decide whether to respond to the RFP or RFQ that you are considering? Here are some questions to help you make a decision:

Is the Request you are considering an RFP or an RFI? In other words, is the government looking to buy or is it just taking a look at the product market? If the government is just taking a look, it will put out what is known as a Request for Information (RFI), as opposed to a request for products or services that it is looking to buy (RFP). Some people look at a request for information and think it's a bid. Take a close look and make sure you are considering the right one. In some cases, an RFI also may be a request that could end up becoming an actual contract. Respond to the RFI if you really have something to offer, giving the government any information they may need to use to put together a solicitation. But, don't give away the farm! Make sure you mark all information that might be considered private as "proprietary." Once you give it to the government, if it is not properly marked, it's theirs to use as they see fit.

Does the product or service required under the RFP fit your company? Some companies try to respond to every RFP that comes their way, hoping that, like the lottery, sooner or later they will win. Although this is great practice for when you find one that really fits you, it's not reasonable to respond to all of them. It is best to first qualify the RFP. See whether the requirements in the RFP are a match for your capabilities and whether the scope of work is within your technical abilities. If your company does not provide, or is not capable of providing, the needed product or service, you may do best to pass it up. On the other hand, don't fail to respond to an RFP that is a good match for your capabilities just because the RFP seems to be written to a specific company or specific technology or product. If you can demonstrate that you can make or do the same thing--and possibly even better (perhaps you can offer additional benefits, a lower price, etc.)--you still have a possibility of winning. So long as you meet the specs (that is the key), consider it as an opportunity for you.

In one instance that we know of, the contracting agency actually used a particular company's brochure as the basis for the scope of work in its RFP. Although it certainly looked like the RFP was written to that particular company, that was not the case. The brochure happened to describe best what the agency wanted, but it in no way meant to exclude other companies that could match, or exceed, the features outlined in the scope of work.

What are the marketing considerations? Is this request something that is considered a new product for you? And, if so, can you leverage this into more business by selling to other customers? Also consider whether winning will cost you an existing account or be at the expense of your other lines and services.
What about the customer? Is the government buyer someone you want to do business with? In other words, do you already have some kind of relationship with the buyer? Is it good or is it strained?
Is the project funded? It may be a good idea to find out whether the project is funded. (All you have to do is ask.) If there are no funds, the buying agency can't go to contract and you may end up putting a lot of effort into a proposal without a chance of getting a contract out of it. If you are told that there are reserve funds for the project, you could still end up without a contract because the government has the right to reallocate reserve funds if it needs the money for other priorities. You could meet all the requirements and even be low bidder, but the project is going no farther without funds.

If, after consideration of all the factors, you decide not to respond to an RFP, but you have had contact or discussions with the contracting officer prior to the RFP being issued, you should, out of courtesy, let the contracting officer know, in writing, that you are not bidding and the reasons why.

Work Smart

Keep in mind that the worse that could happen in taking a chance and doing a proposal for the government is that you win the bid but that the government cannot fund it and it won't go to contract. The most you will ever lose is the time and cost of preparing the proposal. If a project goes to contract, that means it is funded. Unlike a commercial contract, you never have to worry about not getting paid for work done under a contract with the government.