A Bid is an approach to a customer in order to gain significant new or repeat business.

2. Why do companies Bid?

Companies bid to win new business and to gain pull through business (continuing business with the same client).

3. What is an ITT?

An Invitation to Tender (ITT), also known as a Request for Proposal (RFP) or a Request for Quotation (RFQ), is a formal document from a prospect (potential client) that invites a Bid from the supplier. In many industries these are complex requirement documents that cover all technical and commercial aspects of the Bid.

4. How important is the ITT? How can this be influenced?

The ITT is one of the most important documents in a Bid, as it clearly specifies the requirements of the customer in regards to their business needs. This not only allows the supplier to tailor their bid to suit the customer’s needs, but it can invalidate a Bid if there are insufficient resources to make profitable business, so a firm can choose to stop the Bid and save losses.

ITT’s will give mandatories (necessary requirements) and desirables (additional wanted features). A standard Bid would normally include all mandatories and desirables at the lowest possible price. ITT’s also implicitly suggest other requirements are expected in the Bid, which a Bid Team must pick up on to put forth a successful Bid.

The firm can influence the ITT during study phase (before the ITT is distributed) by:

• Creating a relationship with the client

• Inquiring about particular aspects to refine offering

• Influencing the requirements to suit your strengths In some cases a bid can be won before an ITT is sent, but this is rare.

5. What business should firms approach?

Firms should not approach all business; the attempt for some business can actually ruin firms. Firms should only approach winnable “good business” that will profit the firm. Any other business wastes valuable resources with no reward, ultimately leading to business failure.

6. What is Qualification? Why is it relevant?

Qualification is the most important process at the start of a Bid. The process deals with whether to continue with the Bid at all, or simply stop and reduce losses. The Qualification process considers two main aspects of the prospective business:

• Can the business be won?

• Is the business worth winning?

7. What is a Bid File? What should go in a Bid File?

A Bid File is a file that documents the progress of the Bid. Everything related to the Bid should be put into the Bid File, to keep a concrete record of everything that happens during the Bid.

8. What happens when you send your Proposal?

There is a period of time during which there is no contact between you and the prospect (potential client). At this time the prospect will be either producing a short-list of possible suppliers to win its business or making a decision on its chosen supplier. This period of time is known as the “Black Hole” period, because a great deal of information is taken in by the prospect (client), but no information goes out.

9. What happens after the Bid has been won?

After announcing the winner of the Bid, the prospect (client) and the supplier will enter the negotiation phase, where the business contract is finalised and awarded to the supplier.

10. What happens after a contract has been finalised and awarded?

When a contract has been finalised and awarded, the Bid Team hand over the project to the relevant department to actually implement the business for the client. During the Bid, the Bid Team promises to fulfil certain duties for the client, which should be undertaken by the product (business project) user. If the business is not handed over properly it can risk the supplier’s profit, reputation and potential future business with the client.

11. Why do I need a Bid Process?

Bid processes maximise use of the resources available to make the best result for your firm in responding to a prospect’s demands, giving your firm the best possible win chance in bidding for business with the same resources available.

12. What is a Bid Process?

A Bid process is a documented and repeatable process that is used to manage bidding activity.

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