6 Reasons Why Incumbents Lose Tenders

So you’ve been enjoying a lucrative Government or Commercial contract but the term is coming to a close and you have to get on the tender merry-go-round once again. But all too often I see the incumbent fail — and I usually end up talking to them three years later when the contract is again up for tender.

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What goes wrong? 

I’ve reviewed loads of tenders prepared by the incumbent service providers, and I can tell you a few common issues I see time after time:

1. You’ve been doing it for years, and they know you, right? 

Wrong. The tender evaluation panel will be made up of a bunch of people who don’t know you from Adam, so don’t let your history with the client lull you into a sense of security that this one is in the bag because it most definitely isn’t. 

Now is the time to demonstrate your experience and quality service delivery for the client, and make sure that you point out that since you’re the incumbent service provider, you’ve accumulated a wealth of knowledge about the site and client processes and that no transition is required.

2. You haven’t done your homework. 

Check out who is tendering so you know who you’re up against. How? Well, the tender briefing session (if there is one) is a good opportunity to suss out the competition. Some tender sites also display who has registered their interest or downloaded the documents, so check it out.

3. You think you know what the client wants.

It’s because you’ve been providing incumbent services to them for years. That may be the case, but it doesn’t mean you shouldn’t thoroughly review the documentation just to see if any requirements have changed.

4. Your pricing is out of step with where the market is at. 

If you’ve been providing services for years to the same client and increasing your rates annually, it may be that you’re no longer price-competitive. Use your client contacts if possible to (carefully) find out if you need to review your rates.

5. You’re not thinking about innovation and value-add. 

ANYTHING you can include in your tender that demonstrates your ability to go the extra mile as an incumbent service provider — innovating or adding value to the client will go a long way to help you create a winning bid. If you’ve gone above and beyond the contract requirements, don’t be afraid to highlight it.

6. You leave your preparation until the last minute.

Preparing a quality, persuasive, and winning tender response is no small task, so ensure you give yourself plenty of time to finish the job well.

Wrapping Up

If you’re the incumbent service provider on a contract that has just gone out to tender and need a hand with your tender submission, I’m here to help - just call Pauline on 0400 154579, contact me here, or even better, send me an email at pauline@tenderwise.com.au. I write fantastic tender submissions morning, noon, and night, and I can help you put together a great pitch (and I do all of the hard yards; all I need from you is a brain dump of key information).

Want to know what my clients say about my services? Check them out here.