How do you decide bid or no-bid when you cannot tell if an RFP is wired for the incumbent?

When an RFP appears to favor an incumbent, you need to weigh the time and resources you will invest against the likelihood of a fair evaluation. The state agency's specification of a particular software solution that the incumbent uses is a strong signal that the RFP might be wired. For federal procurements, this type of specification would be scrutinized under FAR Part 6, Competition Requirements, which generally prohibits specifications that unduly restrict competition. State and local procurements follow their own procurement codes, which often have similar principles. Your decision to bid should consider if the agency has a legitimate, documented need for that specific software, or if they are simply accustomed to the incumbent's solution. If you cannot meet the specific software requirement or offer a demonstrably superior alternative that the agency would reasonably consider, then the investment of three weeks for proposal writing is likely not worthwhile. I look at how narrowly defined the requirements are, how short the response time is, and whether the past performance requirements are tailored to only one vendor. If you still want to pursue it, consider submitting questions during the Q&A period to challenge the proprietary specification and request an amendment to broaden the scope.

A bid bond is a tool that can reveal if an RFP is wired for an incumbent. The bid bond protects the government if the low bidder fails to sign the contract. If the low bidder backs out, the government can claim the difference between the low bid and the next low bid from the bid bond. The bid bond amount is typically set at 5 percent of the bid price. If the agency specifies a bid bond, it means they are serious about getting a signed contract from the winning bidder.

Your bid or no-bid decision should start with a thorough analysis of the RFP against your firm's capabilities and the competitive landscape. Nadia is right that specific software solutions can be a red flag, but sometimes an agency has a legitimate need for interoperability or standardization. I look at the entire RFP for restrictions beyond just software, such as highly specific personnel requirements or unusually restrictive past performance criteria that only the incumbent could meet. If you decide to pursue it, engage in shaping activities by submitting a strong Request for Information (RFI) response or a sources sought notice response before the RFP drops, highlighting your alternative solutions and their benefits.