In the world of government contracting, the go/no-go decision in the RFP lifecycle is one of the most critical stages. This decision determines whether your company should proceed with submitting a proposal or walk away.
What is the Go/No-Go Decision?
The go/no-go decision (also known as the bid/no-bid decision) is the moment when a company evaluates an opportunity and decides whether it’s worth investing time, money, and resources into a proposal. Companies usually make this decision after receiving an RFP but before developing a formal proposal. It acts as a safeguard, helping them avoid wasting resources on bids that don’t align with their strategy or exceed their current capabilities.
Making a Go/No-Go Decision: Key Considerations
The go/no-go decision is not one that should be made lightly. To make an informed decision, organizations must evaluate several key factors.
Here are some of the most critical questions that must be answered during this stage:
Do we meet the mandatory requirements?
One of the first things to evaluate is whether your company meets the minimum qualifications outlined in the RFP. If your company lacks the necessary certifications, licenses, or experience required for the opportunity, this is a strong signal that it might not be worth pursuing.
Can we assemble the right team to respond?
A successful proposal requires a skilled team with the right expertise to deliver the required solution. Before committing to a proposal, assess whether you have the resources and the right personnel to respond effectively. If assembling this team is not feasible, it may be wise to pass on the opportunity.
Do we have time to prepare a high-quality response?
Preparing a comprehensive and competitive proposal requires significant time and effort. The go/no-go decision should include an honest assessment of your timeline. If there isn’t enough time to prepare a high-quality response, or if the proposal would stretch your resources too thin, it’s better to make the tough call and walk away.
Can we price competitively and profitably?
Pricing is often a determining factor in whether your proposal will be successful. Ask yourself: Can you offer a competitive price while still making a reasonable profit? If pricing competitively would compromise your ability to deliver quality or profitability, the go/no-go decision may lean toward a “no-go.”
Is there a strategic value in winning?
Even if a proposal isn’t financially ideal, there may be strategic benefits to pursuing it. For example, a win could open the door to long-term opportunities or provide access to new agencies or clients. When making a go/no-go decision, it’s important to consider the long-term value of the opportunity, not just the immediate financial gain.
The Consequences of a Poor Go/No-Go Decision
The go/no-go decision is not simply a step in the process. It’s a critical decision point that can have lasting consequences for your company. Pursuing a proposal outside your strengths can waste time, drain resources, and hurt your reputation.
On the other hand, passing on a strategic opportunity could mean lost revenue or market share.
When to Pass: The Importance of Saying No
While it may be tempting to say “yes” to every opportunity, the reality is that not every RFP is worth pursuing. The go/no-go decision should be based on careful evaluation and realistic expectations. If the answer to most of the key questions is “no” – for example, if you don’t meet the mandatory requirements, can’t assemble the right team, or don’t have time to prepare a quality proposal – it’s often wiser to pass on the opportunity rather than risk wasting resources on a low-likelihood bid.
Conclusion
The go/no-go decision is one of the most critical stages in the RFP lifecycle, and its importance cannot be overstated. By carefully evaluating the alignment of the opportunity with your business goals, available resources, and strategic value, you can make an informed decision that maximizes your chances of success.
Remember, not every opportunity is worth pursuing, and making the right go/no-go decision can ultimately save your company time, money, and effort while ensuring you focus on the opportunities that truly matter.
