Why Did I Lose My Bid?

After taking the first step by placing a bid, you may receive news that you did not win the contract. Learning why your company was not awarded can help your business win future bids. These are some of the more common reasons why the federal government may pass over your company to use another.

The Bid is Too High

Price is the main factor that is a top consideration. When all things are equal, if your price is set too high you may miss out on a contract. The federal government is highly focused on cutting back on spending and expects to receive some form of discount when awarding a contract.

While they do not want companies to go under and they do want to keep the price competitive, they do not want to overpay for a product or service.

Be realistic when quoting prices and remember that few companies get rich on Uncle Sam’s dime. Think of government contracts as steady and low-risk income, not a “get rich quick” scheme.

Lost to a More Qualified Bidder

Experience and past performance are other factors that are looked into when awarding bids. If another vendor is more qualified or capable of fulfilling the needs of the contract, they pose less of a risk and would be looked at as a good choice.

A company's technical capabilities are always considered, even if they do not make it a priority. If a vendor undercuts their competitors but does not have the experience or the ability to perform the job, they may not get recognized. This goes into the idea of the lowest price technical acceptable (LPTA).

If you find that you are in a situation of not technically acceptable, you may want to consider subcontracting. Subcontracting will allow you to perform work on contracts you could not have handled on your own. Teaming in this way allows you to gain experience and past performance, which will make you a more attractive vendor for future jobs. It also allows you to build your reputation as a dependable, high-quality contractor.

Errors or Omissions in Your Bid

Whether you are new to government contracts or experienced, making a mistake in your proposal can cost you a contract.

Give yourself plenty of time to read through the solicitation and review your documentation. A contracting officer can reject a proposal if it does not follow the instructions. Not being able to follow directions can be a clear sign to the federal government that the bidder will not do what is required of them when it is time to perform for the contract.

Make sure you have completed all the requirements for the bid, answered all the questions, and filled in all the requested prices and quantities. Missing even a single piece of data can result in your offer being refused, so it is worth your time to double and triple-check everything.

If you are not sure why your bid was rejected, do not be afraid to ask the contracting officer why you lost. If you are respectful, most buyers are happy to explain why they chose to award the contract to someone else if it is for something other than price. Remember what they have told you and use it in your next bid to increase your chances of winning.