Master the Contract Bidding Process: 10 Essential Tips for Contractors

1. Know Your NAICS Codes

 

These industry classification codes determine what opportunities appear for your business.
Most bid portals sort opportunities by NAICS, so selecting the correct ones is crucial.

 

2. Register on All Required Portals (Federal, State, & Local)

 

Federal contracts require SAM.gov registration.
State/local contracts require state procurement registrations (e.g., eMMA for Maryland).
If you’re not registered, you can’t bid — even if you find the opportunity.

 

3. Understand the Bid Type (IFB, RFP, RFQ, RFI)

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• IFB – Lowest price wins
   

• RFP – Best value wins (technical + price)
   

• RFQ – Request for pricing
   

• RFI – Market research, not an actual bid
  Knowing this helps you tailor your response and not waste time.
   

4. Carefully Read the Scope of Work (SOW)

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Most rejected bids fail because contractors misread:

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• deliverables
   

• timelines
   

• technical requirements
   

• mandatory qualifications
  The SOW tells you exactly what the client wants — and what they won’t accept.
   

5. Track All Mandatory Requirements

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Many bids include must-haves, such as:

• licenses
   

• certifications
   

• insurance limits
   

• past performance
  If you miss even one, your bid is automatically disqualified.
   

6. Know the Evaluation Criteria

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Every RFP tells you how you’ll be scored — usually a point system.
Focus most effort on the sections worth the most points.

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7. Price Strategically — Not Just Low or High

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Your price should reflect:

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• cost of labor
   

• overhead
   

• materials
   

• profit margin
   

• risk
  For government contracts, prices must also be realistic and not considered “unbalanced.”

 

8. Watch All Deadlines (including Q&A periods)

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You must track:

• submission due date
   

• pre-bid meetings
   

• question deadlines
   

• addenda releases
  Missing a Q&A deadline means you can’t clarify unclear requirements.

 

9. Maintain Good Past Performance & References

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Bid evaluators prioritize reliable contractors.
Having strong past contracts, recommendations, and a portfolio drastically improves your chances.

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10. Consider Starting as a Subcontractor 

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New contractors often win more work by:

• teaming with a prime contractor
   

• partnering via mentor-protégé programs
   

• leveraging larger companies’ experience
  This builds credibility and past performance so you can win prime bids later.

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Small Business Contract Planner