How to Write a Small Business Bid Letter

By Lanee’ Blunt

Writing a small business bidletter requires different things to consider when preparing the bid. Start withan outline this will help you organize information that needs to go into thebid letter.

Writing a bid letter can winyou the bid. A purchasing bid letter has to be planned before you begin theinitial writing. In most cases the bid will go to the lowest-priced responsiblebidder. They are evaluated with no discussion held with the bidders.


Things You’ll Need
Cost of material
Cover reports
Financial statements
Certificates and licenses

Analyze the requirements. Before you prepare the bid make sure you have afull understanding by studying the specifications and requirements to make thepurchase.  Examine all thespecifications, read the IFP several times.

Write the “Company profile”section. Write about your qualifications and your experience with similarjobs.  Include the bidder’sidentification number, number of employees. Tell the evaluators theresponsibilities of key personnel and subcontractors.  Add client references.

Write your response. Start the first paragraph with a section about your company. Bidsinclude the experience, expertise, and a reliability section and the method ofperformance. Tell the procurement staff or the business venture about yourorganization your experience and your work references or samples of the type ofwork performed. The second paragraph is the performance section and it should tellhow your organization will perform when you buy the business venture, ordeliver the goods requested in the bid document. The format is not thatimportant just make sure you have all the information included.

Your bid price should comeout of the budget detail, the materials, labor, overhead, packaging andtransportation. The price must meet the supplier’s rate of return objectives.

Make sure that the bid issigned.
Do not leave out attachment,for example financial statements, compliance reports, certificates, licenses,etc.