The 5-Question Go/No-Go Framework That Prevents RFP Disasters

Another RFP notification hits your inbox. You scan the requirements, see work you can absolutely do, and start mentally drafting your proposal response.

Stop right there.

If this sounds familiar, you're making the same costly mistake that keeps most small businesses trapped in what I call the "RFP chase cycle" - constantly reacting to opportunities instead of strategically positioning for wins. But first, let's clarify what we're actually talking about here.

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What Go/No-Go Really Means

The Association of Proposal Management Professionals (APMP) defines the go/no-go decision as "a formal process for evaluating business opportunities to determine whether to pursue them based on strategic, competitive, and financial factors."

In plain English: It's the systematic way to decide which opportunities deserve your time and which ones will drain your resources.

Here's what I see happening: Small businesses skip this analysis completely and jump straight into proposal writing. They spend weeks crafting responses to opportunities they never had a realistic shot at winning. The average small business spends $2,100 to $10,000 per proposal response and wins maybe 10% of what they bid on. That math doesn't work.

Meanwhile, the companies that actually win consistently? They analyze before they act. They ask the hard questions before they invest a single hour in writing.

Now, larger firms with dedicated business development teams can start this go/no-go analysis months before RFPs drop - when opportunities are just forecasted or mentioned in agency planning documents. They have the luxury of early intelligence and relationship building.

But I'm assuming you're working with a small team and starting from the public RFP notice like most small businesses. That doesn't mean you can't be strategic - it just means your analysis needs to be faster and more focused.

The good news? Even starting from the RFP announcement, this framework will save you from costly mistakes and help you focus on opportunities where you actually have a shot at winning.

What Reactive Bidding Really Costs You

Before we get to the framework, let's talk about what this RFP scrambling is actually costing your business. It's not just the obvious stuff like late nights and proposal writing expenses.

The real damage includes:

• Missing winnable contracts while you're buried in losing proposals

• Team burnout from constant deadline pressure and rejection

• Submitting rushed, mediocre work that hurts your reputation

• Chasing random opportunities instead of building strategic market position

• Cash flow chaos from unpredictable wins

I've watched too many capable small businesses burn out their best people (myself included) chasing everything and winning nothing. There's a better way.

Why Strategic Contractors Win More

While everyone else starts writing, strategic contractors start analyzing. The go/no-go decision isn't just about individual opportunities - it's about building systematic processes that compound your success over time.

Every strategic decision you make improves your positioning for future opportunities. You're not just qualifying this RFP - you're training yourself to spot the patterns that separate winners from chasers.

Here are the five questions that will save you from proposal hell:

Question 1: Do We Actually Want This Client?

This isn't about whether you can do the work. It's about whether you should do the work with this specific agency. Some agencies are notorious for slow payments, micromanagement, or constantly changing requirements. Others have cultures that clash completely with how small businesses operate. 

Just because you can win doesn't mean you should pursue.

What to look for:

• Check their payment history on USASpending.gov, if it's federal (seriously, do this)

• Talk to other contractors who've worked with them

• Research their past procurement patterns and decision-making style

I've seen businesses win contracts that kept them busy but made them miserable. Some clients will drain your resources, damage your team morale, and hurt your market reputation. Be selective about who you want working with you for the next several years.

Question 2: Can We Realistically Win?

This is where most small businesses get overly optimistic. They see work they're capable of doing and assume they have a fair shot. If this is your first contract with this agency, you're already at a disadvantage. If you're competing against an incumbent who's performed well, your win probability drops significantly. If you don't know who the likely bidders are, you're not ready to compete.

Before you spend weeks writing, honestly assess:

• Who else is probably bidding and what are their strengths?

• What's the incumbent's track record?

• Are there existing teaming relationships you don't know about?

• Does the scope favor a particular type of company?

When 60-80% of federal contracts go to incumbents or companies with prior agency experience, this isn't pessimism - it's strategic thinking.

Question 3: Do We Have the Right Relationships?

Contracts go to companies they trust. When you have genuine relationships with the people who write requirements and evaluate proposals, several things happen:

• You understand their real challenges, not just what's in the statement of work

• You can influence their thinking about requirements

• They see you as a solution provider, not just another vendor

• You're positioned strategically before competitors even know opportunities exist

Ask: Can you name the program manager, contracting officer, and end users? Have you had meaningful conversations with them about their challenges? Do they know your capabilities beyond your company website?

If the RFP just dropped and you're starting relationship-building now, you're too late for this opportunity. Winning relationships are built months or years before opportunities are published.

Question 4: Can We Deliver AND Profit?

You might be able to do the work, but can you do it profitably while maintaining quality? Factor in everything: pursuit costs, proposal writing time, project management overhead, and the opportunity cost of not pursuing better contracts. 

Consider the real resource requirements:

• Do you have the right team available when work starts?

• What's the learning curve for new requirements?

• How will this project affect your ability to serve existing clients?

• What happens if project scope changes or funding gets cut?

Know your real costs before you commit to anything. Staying busy isn't the same as building a profitable business.

Question 5: Does This Move Us Forward Strategically?

This is what separates strategic contractors from opportunistic chasers.

Will winning this contract position you better for the opportunities you really want in the future? Does it build credibility in a market you want to dominate? Will it create relationships that lead to better work? Does it align with where you want your business to be in three years?

Or are you saying yes because it's available, not because it's strategic?

Think about opportunity cost: What else could you pursue with the same time and resources? Is this the best use of your business development energy?

How to Use This Framework

Here's how to make this systematic instead of emotional:

• Step 1: Answer each question honestly with your team. 

• Step 2: For borderline opportunities, score each area from 1-10. 

• Step 3: Create decision triggers that make this automatic. Note that these will depend on your industry, strategy, etc.

• Step 4: Track your decisions and outcomes. What patterns emerge in your wins versus losses? How accurate are your initial assessments?

Bonus: Why Pricing Should Come First

Here's where most small businesses get it backwards - they write the entire proposal, then scramble to figure out pricing at the end. This approach leads to disaster: you either overpromise and lose money, or you price yourself out of the competition.

Your pricing strategy should determine your technical approach, not the other way around. Do a quick cost estimation before you invest 40+ hours in proposal writing. 

The Strategic Advantage You're Building

Most small businesses aren’t using a formal qualification process. Implementing this framework immediately gives you an advantage over your competition.

When you consistently apply this process:

• Your win rate increases because you're only pursuing strategic opportunities where you have genuine advantages.

• Your team becomes more efficient because they're not constantly switching between different pursuits and burning out on losing proposals.

• Your market reputation improves because you're submitting fewer, higher-quality proposals instead of throwing everything at the wall.

• Your relationships deepen because you're investing time in fewer, better agencies instead of spreading yourself thin across random opportunities.

• Your profitability increases because you're focused on contracts that align with your capabilities and target margins.

The goal isn't to find perfect opportunities (they don't exist). The goal is to avoid costly mistakes and focus your limited resources where they'll generate the highest return.

Ready to stop the RFP chase cycle? The framework is just the beginning. Strategic government contracting requires foundation work in market intelligence, relationship building, and competitive positioning.

Want the complete go/no-go decision template? Download it here