Reasons Why Suppliers are Choosing to “No Bid” & How a Solicitation Library Can Help

Predicting supplier behaviors as to why they don’t submit a response to your RFP/IFB invitation or choosing “No Bid” is not always straightforward. External factors such as the ever-changing market conditions can significantly influence a supplier's decision. Some suppliers might be influenced by their political beliefs or might find the government procurement process too cumbersome.

However, beyond these uncontrollable factors, specific deterrents can exist within the solicitation process that can push suppliers towards opting not to bid on a specific solicitation. Recognizing and addressing these can help in eliciting more bids and fostering a more competitive environment. The NIGP Business Council recently outlined some of the reasons that might affect the number of bids you receive:

• Overwhelming Time Constraints—A very short response window might discourage suppliers. The rushed timeline can seem inadequate for understanding the demands and crafting a fitting proposal.
• Crunched Scheduling—If the Q&A period is nestled too close to the closing date, it creates pressure. Suppliers may feel shortchanged, lacking the time they need for crucial clarifications.
• RFx Ambiguity—An unclear RFx, especially one lacking an introductory summary, can create confusion. The absence of clarity might deter suppliers from committing their resources to respond.
• Unrealistic Price Points—Pricing requirements that diverge from the prevailing market or industry norms can be disheartening for suppliers, making them question the feasibility of a bid.
• Overloaded with Requirements —Solicitations heavy with excessive, low-value requirements can seem daunting. The complexity might deter suppliers, fearing an onerous engagement.
• Unclear Specification Boundaries—Specifications that swing between being overly generic and extremely specific can create uncertainty. Suppliers could struggle to align their offerings with such erratic benchmarks.
• Withholding Feedback—Although this might be a policy of your agency, not debriefing unsuccessful bidders can instill discouragement. Without feedback, suppliers miss out on understanding areas of improvement, which might make them hesitant about future engagements.

While some of the above cannot be avoided or are out of your control, it is worthwhile to conduct initial research for similar RFx prior to publishing to learn any insight of how an RFx will perform. A Solicitation Library can provide an array of help, including research materials and resources for your organization to learn previous solicitations from within your region, or throughout the country. You can also contact references from other government procurement buyers to learn one-on-one about their experiences.

What is a Solicitation Library?

A solicitation library is a repository that houses solicitations, addenda, and awards for other purchasers to “borrow.” Solicitation libraries provide you with valuable information on what your peers have solicited in the past, and they facilitate the sharing of resources, which saves you time when creating specifications and conducting primary research on a new solicitation.

Purchasing associations such as NIGP host bid libraries, as do many procurement providers such as Bidnet Direct. Bidnet Direct’s solicitation library is home to hundreds of thousands closed and awarded bids.

How Can Bidnet Direct’s Solicitation Library Help You?

A solicitation library is more than just a collection of archived requests for proposals. It’s a reservoir of insights, a platform for saving time, and a catalyst for inter-agency collaboration. Here are some important benefits:

Time-Saving Templates from Past Solicitations

With the solicitation library, agencies can effortlessly pull insights from past solicitations when crafting new solicitations. These historical documents act as guiding templates, providing a foundational structure that can be customized to fit new solicitations.

Kirk Magnussen, Director of Information Systems for Grand County, Colorado, vouched for the solicitation library's efficacy, stating, "Being able to use other [agencies] postings has been great.” He elaborated on its practicality, noting, "It’s very nice for me to go out on BidNet [Direct] and look at what other people have done... It's been a great learning tool. It helps when you don't have to recreate the wheel."

The Power of Collaboration: Piggy-Backing Solicitations

The solicitation library’s value extends to fostering collaboration. Knowing the origins of a particular solicitation allows agencies to connect, exchange feedback, and share insights. This collaborative spirit gives birth to 'piggy-backing' solicitations – an opportunity where agencies can benefit from each other's work.

This can be a great resource because it can also be taken one step further. Buyers can use their awards to piggyback onto their own purchases, similar to a cooperative bid. BidNet Direct’s bid library makes finding piggy-backable bids easy, allowing agencies to search through solicitations for only those that have piggy-backable language.

Real-Life Experience: Greater Rockford Airport Authority

To put the solicitation library's usefulness into perspective, consider this real-world scenario: When Greater Rockford Airport Authority was seeking details on leasing postal machines, an item infrequently bid upon, they turned to the bid library.

Chip Geiger, NIGP-CPP, C.P.M., CPIM, CIRM, Rockford Airport Authority’s Procurement and Compliance Manager shared, "I was looking for information on scopes for leasing postal machines, which we don’t put out bids for regularly. I was able to see what other municipalities included in their documents and use that as a starting point for my ITB. By not having to reinvent the entire document, I was able to save at least two hours of investigation and writing, as someone had already done the background work."

Finding the Resources You Need To Increase Bid Response

In a world where shared resources are pivotal to scaling efficiency, BidNet Direct's bid library can be a great tool for local government agencies. This library offers a shared space they might not have had access to before, enabling them to glean from solicitations across both local terrains and the broader national landscape.

Whether it's molding a template from previous solicitations, seeking counsel from other purchasing departments, or leveraging the power of piggy-backing on local bid awards, the possibilities are expansive. In essence, the bid library not only streamlines processes but also fosters a sense of community among agencies, where shared wisdom becomes the cornerstone of more strategic and informed decision-making.

 

Find out how BidNet Direct can help your government organization improve compliance!