No Bid, No Problem: How to Write a Professional No Bid Letter (Example Included)

Writing a no bid letter can bring up all kinds of worries: What if we’re missing a big opportunity? Is this really the right decision? Are we hurting our chances for future work with this client?

Saying “no” isn’t easy, but sometimes declining a request for proposal (RFP) is a smart move because it allows your team to focus on bids you’re best positioned to win. And with the right approach, it can actually strengthen your relationship with the client, helping your company stay on the bidders list.

Read on to learn how to write a no bid letter that keeps the door open for a future win.

A no bid letter is an official notice you send to a buyer, communicating your final decision to not participate in the bidding process. This letter typically includes:

• An expression of gratitude for the opportunity to bid or submit a proposal.
• A clear statement of the no bid decision to foster transparency with the client.
• A brief explanation of the reasoning behind the decision, like limited resources, timing conflicts, or a mismatch with the RFP requirements.
• An indication of interest in future opportunities, along with contact information to stay in touch.

Sending a no bid letter early in the bidding period can help maintain a positive relationship with the client by showing gratitude and respect for their time. It also keeps the lines of communication open, ensuring they consider your company for future opportunities that might be a better fit—more on that below.

A no bid decision should never be made on a whim—it should be grounded in clearly defined RFP evaluation criteria. By being thoughtful about opportunities, you can make a confident decision about pursuing or declining an RFP. (Plus, have solid reasoning to include in your no bid letter.)

Before you make your decision, ask yourself these questions:

• Does this project align with our strategic goals and long-term vision?
• Do we have the resources and expertise to meet the client’s needs effectively?
• Is the timeline achievable given our current commitments?
• Are there any conflicts, ethical concerns, or potential risks involved?

Of course, your decision to pass on the opportunity may be driven by internal factors—like resource constraints, timeline issues, or ethical concerns—but that doesn’t mean you must fully disclose every detail to the buyer. While transparency is essential for building trust, you can tactfully communicate your no bid decision without oversharing.

There are a variety of ways to handle a no-bid situation. Some teams opt for the bare minimum—sending a brief, impersonal response or choosing not to notify the client at all. Others see a no bid letter as a strategic moment to keep the door open in case another opportunity presents itself in the future.

Let’s look at three approaches to saying no to an RFP—and when to use each:

When you don’t acknowledge an invitation to bid, it can make you seem unprofessional and disengaged. This can damage trust and weaken your company’s standing with the client, making it less likely they’ll invite you to bid on future projects. By choosing silence, you also forfeit a valuable opportunity to nurture a relationship with the client that may be beneficial down the road.

☞ When to use it: If you’ve had no prior engagement with the buyer or they’re clearly not your ideal customer, it may make sense to move on without investing further time. Still, this is not a recommended approach for any situation where maintaining a relationship is valuable in the long term.

A brief, impersonal response—while better than no response—can come across as indifferent or dismissive. This approach may not damage the relationship as significantly as ignoring the RFP altogether, but it also doesn’t leave much of a positive impression. The client may perceive the response as lacking genuine interest in working together in the future.

☞ When to use it: This approach may be appropriate when you’re facing a straightforward RFP that doesn’t warrant a deep dive or if the no bid decision is clear-cut. It’s also useful if you don’t have time for a more detailed response but still want to maintain basic professionalism.

By thoughtfully explaining your decision and expressing interest in future collaboration, you position your company as a strategic partner who’s invested in the buyer’s long-term success. This approach often leads to strengthened relationships, increased trust, and even the potential for a redefined scope or future projects tailored to your company’s strengths.

☞ When to use it: This approach is particularly valuable if the RFP is not a fit right now but you want to signal to the client that you’re open to working together in the future, or if you believe there is potential to adjust the scope or conditions in a way that would align better with your capabilities.

It’s clear to see which approach is best in most cases, but the right choice ultimately depends on your relationship with the buyer, the context of the opportunity, and your long-term business goals.

Now that you understand the importance of a no bid letter, let’s explore how to craft one effectively. These steps will help you write a no bid letter that demonstrates professionalism, communicates your decision clearly, and keeps the relationship intact for when the right opportunity comes along.

Remember, saying no today doesn’t mean saying goodbye forever—it can be the key to a future partnership that’s better aligned with your strengths. So, the next time you make the decision not to bid, consider the impact your response will have on future business opportunities, and craft a no bid letter that keeps the door open. You never know when you’ll receive another invitation to bid.