BDGL / Insights / Negotiation

Should you respond to an RFP, and what saying yes costs

Should you respond to an RFP, and what saying yes costs

Bidding is paid for in the time of the people who would otherwise be selling, and the cost is never written on anything. The decision is faster than most teams make it, and one Saudi threshold rising tenfold in January moves a whole band of work out of tendering altogether.

An RFP arrives and the building reacts to it. Somebody forwards it round, somebody else says we should definitely go for this, and within a day two people have cleared a week to write it. Nobody has yet asked the question that matters, which is whether this document was written with you in mind or written to satisfy a procurement rule after the decision was already made.

Bidding is expensive and the cost is invisible, because it is paid in the time of people who would otherwise be selling. The bid or no bid call deserves the same rigour as the bid, and it is a faster decision than most teams make it.

The three questions, before anything else

Three answers decide most of these. If any of them is a clear no, the rest of the document does not matter.

  • Did you know about this before it was published? If the first you heard of a requirement was the tender notice, somebody else has been shaping it for months. That is not corruption, it is how procurement normally works: buyers talk to suppliers while they are forming a view, and the tender formalises a decision that is substantially made.
  • Can you meet every mandatory requirement, as written? Not nearly. A mandatory requirement you miss by a little is a disqualification you lose slowly, after doing all the work.
  • Would you want the contract at the price it will clear at? Open tenders compress margin. If you only want it at a price the process will not produce, you want the logo and not the work.
What this covers
What this covers

The fingerprints of an RFP written for somebody else

Beyond those three, a document carries evidence of who it was built around. The useful signals are specific rather than atmospheric.

  • Feature names rather than outcomes. A requirement phrased in a competitor's product vocabulary was copied from that competitor's material, often by a buyer who asked them to help draft it.
  • A timeline that only an incumbent can meet. Four weeks to deliver something that takes twelve unless you already have the environment, the access and the data.
  • Reference requirements shaped like one company's history. Three projects of a named size, in a named sector, in a named country, within a named period.
  • A question window too short to use. Clarification questions are where a bidder discovers what the buyer actually wants. A five day window on a sixty page document is a signal.
  • Weightings that are mostly price. If quality carries twenty per cent, the buyer has told you what the decision will be.

What the new Saudi procurement law changes about this decision

If you sell to Saudi government entities, the arithmetic of this decision changes in January, and it changes in a direction that should move effort away from bid writing.

Baker McKenzie's analysis of the key changes under the new Government Tenders and Procurement Law records that the law was published on 4 September 2026 and takes effect 120 days later, on 2 January 2027, replacing the 2019 law. Two of the changes it lists bear directly on whether a given contract will be tendered at all:

  • The direct purchase threshold, under Article 32, rises from SAR 100,000 to SAR 1 million.
  • The delegation limit for the head of a government agency, under Article 51, rises from SAR 10 million to SAR 50 million.
  • The Ministry of Finance review period, under Article 57, falls from 15 working days to 4 working days.

Read the first of those as a seller. A tenfold rise in the direct purchase threshold means a band of work that previously had to go to tender can now be bought directly. For anything in that band the competitive document is the wrong instrument, and what wins is being a registered, pre qualified supplier before the requirement exists.

The analysis is also explicit that the implementing regulations are not final: only a draft has been released for public consultation, and the provisions that matter most to a bidder, including how local content is prioritised and calculated and any mandatory local content percentages, sit in regulations the Ministry has still to issue. So do not rebuild your qualification process around numbers from a draft. The direction is settled, the detail is not.

At a glance
At a glance

Write down what a bid costs you

Teams decide badly here because the cost is never written on anything. Put it on one line and the decision gets easier, because you can compare it against the expected value of winning.

InputWhat to count
Writing and assemblyHours from whoever actually writes, not the hours you wish it took
Technical inputSpecialist time pulled out of delivery to answer the technical annex
Commercial sign offPricing, legal review of the draft contract, insurance and bonding checks
Bid securityCash or a bank instrument tied up for the tender period
Displaced sellingThe conversations that do not happen in the week you are writing

The last row gets left out and it is usually the largest. A week of bid writing by the person who also runs your pipeline shows up two months later as a gap nobody connects to the tender.

A scorecard you can actually use in a meeting

Score each line yes or no. Four or more noes and you are writing for practice.

TestPass looks like
Prior contactYou spoke to this buyer before the notice appeared
Mandatory fitEvery mandatory requirement met as written, with evidence
RegistrationYou are already registered and qualified on the relevant platform
Evaluation shapeQuality carries enough weight for a better answer to win
Price appetiteYou would sign at the price this process produces
CapacityYou could start on the stated date without breaking existing work
Decision accessYou know who evaluates, and the clarification process is usable

The test people argue about is prior contact, because it feels defeatist. It is not a rule that cold tenders are unwinnable. It is a statement about base rates, and base rates should change how much you spend per bid.

The cases for bidding anyway

Three, and they are all legitimate when named out loud rather than used as cover.

You are buying information. A first bid into a new sector teaches you the evaluation criteria, the contract terms and the price level. That is worth money, as long as you bid cheaply and accept that you are paying tuition.

You want the relationship, not this contract. An obviously non generic submission puts you on a list. Buyers remember the supplier who clearly read the document.

The incumbent is visibly failing. A retender with a short extension history is a different proposition from a first award, and that history is often public.

What is not a reason: the pipeline looks thin and writing something feels like progress. That is the most expensive form of activity available to a sales team, and it is indistinguishable from work. We have written before about how that pattern forms, in business development as a system problem rather than an effort problem.

How to decline so you are invited next time

A no bid is a sales action. Reply to the named contact before the deadline, say you are not bidding, and give one honest reason: the timeline, a mandatory requirement you cannot meet, or capacity. Then say what you would be the right supplier for.

That note costs ten minutes and does two things a silent withdrawal cannot. It leaves the buyer with an accurate impression of what you do, and it occasionally produces the most useful outcome available, which is a buyer telling you the requirement was more flexible than the document implied.

If the reason you are declining is that the scope will not hold still, say that plainly. It is the same boundary problem Khaled Badr describes from the supplier side in dealing with a client who asks for too many revisions.

Where this sits next to the rest of the process

The bid or no bid call is the first gate. What a submission should then contain is in what makes a B2B proposal that wins, the negotiation after a shortlisting is in negotiating with procurement departments, and the public sector specifics of getting onto the register are in selling software to government in MENA. If you should be disqualifying this earlier in the cycle, that is when to disqualify a prospect.

Honest limits

Three.

The threshold figures are Saudi and they are not in force yet. They take effect on 2 January 2027 and the implementing regulations are still a draft. If you are reading this after that date, check whether the final regulations changed the numbers, and do not apply them to Egypt, the UAE or Qatar, which run entirely separate regimes.

The scorecard is a heuristic, not a model. No weightings, no evidence base beyond pattern recognition. Treat four noes as a prompt to argue properly, not as an answer.

Some sectors genuinely run open competitions. Where a buyer has a mature procurement function and a real quality weighting, cold bids win often enough to be a strategy. The way to know is to count: track your own tender conversion rate for a year, split by whether you had prior contact. If the two rates are similar, ignore most of this. If they are far apart, you have an answer that is yours rather than ours.

Not sure whether to bid?

Send the tender document and your last four bid outcomes. We will come back with a bid or no bid read and the two requirements most likely to disqualify you.

Book a Free Consultation

Read next