You've looked at the RFP, run the numbers, and decided to pass. Good. That's often the most profitable decision you'll make all month.

Then most people do nothing. The deadline comes and goes, and the buyer never hears from you. That's fine, but it's also a small missed chance. A short no-bid letter takes five minutes and costs you nothing.

Do you have to send one?

Usually, no. Most government RFPs don't require you to tell anyone you're not responding. A few do ask suppliers who aren't bidding to confirm that, or to say why, so read the instructions before you decide it's optional.

One rule to keep in mind: during an open competition, buyers normally name one contact and ask that all communication go through them. Send your note to that person only, keep it short, and don't use it to lobby. If the RFP says not to contact the buyer outside of the question process, follow that and skip the letter.

Why bother

  • You stay on the radar. Buyers remember suppliers who were professional on the way out. A polite no today makes the next invitation more likely.
  • It's useful to the buyer. If several good suppliers pass for the same reason, such as a tight timeline or an unusual requirement, buyers sometimes change the next one. A calm, specific reason is feedback they can use.
  • It closes the loop for you. Writing down why you passed makes the decision real, and gives you something to look back on.

What goes in it

Five short things, in this order:

  1. Thanks. For the invitation or the opportunity to bid.
  2. The decision. Say plainly that you won't be submitting a response. Don't leave room for "maybe".
  3. One honest reason, in a sentence. Timing, capacity, a requirement you can't meet, or work that isn't a fit for what you do. Keep it about you, not about them.
  4. A door left open. Say you'd welcome future opportunities. Only say it if you mean it.
  5. Your contact details.

What to leave out

  • Blame. "The requirements are unrealistic" or "the price is too low" reads as a complaint, even when it's true. If something in the RFP is genuinely a problem, say it once, calmly, as a fact.
  • Long explanations. Two or three sentences is plenty. A page of reasons sounds defensive.
  • Anything about competitors. Not who you think will win, not who has the inside track.
  • A pitch. This isn't the place to describe your services.

A template

Adjust the wording so it sounds like you. This is an invented example, not a required format.

Subject: [RFP number], [short title]: not submitting a response

Hello [Name],

Thank you for the opportunity to respond to [RFP title]. After reviewing the requirements, we've decided not to submit a proposal this time.

[One sentence: for example, "The timeline doesn't fit our current delivery commitments" or "The scope sits outside the work we focus on."]

We appreciate the work that goes into these procurements and would welcome future opportunities that are a closer fit. Please keep us on your distribution list.

Kind regards, [Name, company, phone, email]

Common mistakes

  • Sending it after the closing date. Send it before the deadline, ideally early enough that the buyer can use the information.
  • Copying an old letter and leaving the wrong names in. Check the buyer, the RFP number and the title every time.
  • Over-apologizing. You made a business decision. You don't owe anyone an apology.
  • Saying "maybe next time" when you won't. It's better to say nothing than to promise something you don't intend to do.
  • Sending one when the RFP says not to contact the buyer. Read the contact rules first.

Keep your own note, too

Before you send it, write three lines for yourself: what the opportunity was, why you passed, and what would have changed your mind. Over a year, those notes show you which kinds of bids you keep turning down and which ones you keep regretting. A Win/Loss Review works the same way on the bids you did submit.

The letter comes after the decision

The harder part is knowing when the answer is no. Our guide to the bid/no-bid decision goes through the questions, and the bid pricing guide covers the case where it's a yes only at the right price.

If you have a live opportunity and aren't sure which side of the line it's on, book a free 20-minute Bid Health Check for an honest first read. You can see what to expect first.