From Bid Analysis to Bid Submission: Teaching Contractors to Compete
A rising tide that lifts all boats: practical education, workforce development, and government contracting.
This evening, I conducted a two-hour workshop at Mi Centro in Tacoma, Washington, titled Bid Analysis & Bid Submittal: Applying the MESLO Pricing System to Public Construction Contracts. The workshop brought together small business owners and contractors to work through an actual public construction solicitation, covering everything from solicitation review and quantity takeoff to profitable pricing and responsive bid submission.
Rather than simply discussing the concepts, we walked through the process together, using artificial intelligence (AI), technology, and the MESLO Pricing System to demonstrate how contractors can compete more effectively for government contracts.
Here’s my step-by-step breakdown.
Slide 1, Bid Analysis: Read the Solicitation Before You Price It
With every opportunity, you must decide whether to bid or not bid. Whether to pursue or not. In this case, the three criteria were pretty straightforward: location, due date, and scope of work.
When I asked the contractors whether they would pursue the opportunity, some said no. They thought the contract was too large, given that it was a government project. Others thought we didn’t have enough time to prepare a competitive bid. These are legitimate considerations, but they also illustrate how easily contractors can eliminate themselves from opportunities before fully understanding what’s involved.
The reality is this: you can’t get to runway (that little patch of breathing room when you have money in the bank) without invoicing. You can’t invoice unless you’ve done the work. And you can’t do the work unless you’ve successfully competed for it. That means pursuing enough good opportunities, submitting competitive bids, and winning work that generates profitable revenue. Not every opportunity is worth pursuing, but you have to get into the game to compete.
Slide 2, Quantity Takeoff & Cost Development
Next, you have to gather the plans, specifications, and drawings to understand the project at a high level. This includes project size, scope, applicable prevailing wage requirements, labor considerations, and other information that affects the estimate. The challenge is summarizing these data points quickly and efficiently without overlooking important requirements.
In our case, we used a combination of AI and technology to accelerate solicitation analysis, document review, and preliminary cost development. By analyzing the solicitation’s ZIP file, we could extract key project information, identify relevant requirements, and organize the details needed to begin developing an estimate. What might otherwise take considerable time to review manually could be summarized in minutes.
However, this preliminary analysis is not a substitute for a verified quantity takeoff. The estimator must still confirm quantities, labor requirements, specifications, and assumptions before relying on the results. The objective is to use technology to reduce repetitive administrative work while keeping the estimator responsible for the accuracy of the estimate.
Slide 3, MESLO Pricing System: Turn Identified Costs into a Bid Price
Now that we had our one-page project summary, we took the information and started manually entering it into the Master Takeoff from The Principles of MESLO. Using the methodology and principles found in the book, we could enter material quantities, equipment costs, subcontractor pricing, labor rates, contingency percentages, and project-specific risk factors.
The Master Takeoff organizes these inputs into a structured estimate, accounting for direct costs, indirect costs, general and administrative (G&A) expenses, and the additional considerations necessary to develop a profitable bid price. At this stage, our objective was to establish a rough order of magnitude (ROM) estimate, providing a starting point for discussing costs and assumptions rather than a final bid price.
This is where the MESLO Pricing System becomes particularly useful. It gives contractors a repeatable framework for understanding what a project actually costs before deciding what to charge. Instead of relying on intuition or simply matching a competitor’s price, contractors can develop estimates based on documented costs, appropriate risk allowances, and their desired profit.
Slide 4, Bid Review: Verify the Estimate Before You Commit
The ROM is just a draft estimate. It’s not exact. But the key here is human review. Our workshop was estimator-based: I played the role of estimator, while the contractors in the room played the roles of foremen and business owners. Together, we simulated an internal pre-submission estimate review, where key team members examine project assumptions, challenge quantities, and verify costs before committing to a bid price.
In an actual contracting business, this review might be part of a regular weekly bid meeting involving estimators, project managers, foremen, and ownership. The purpose is straightforward: make sure the numbers going into the estimate are reasonable and reflect the work that must actually be performed. Technology can automate many repetitive tasks, but human review confirms the quantities, timelines, labor hours, and production assumptions needed to complete the work within the proposed schedule.
This turned into a collaborative discussion where everyone participated, questioned assumptions, and helped verify the numbers in the Master Takeoff. The lesson was clear: AI can accelerate the estimating process, but the contractor remains accountable for the final estimate.
Slide 5, Bid Submittal: A Great Price Means Nothing If It’s Non-Responsive
Finally, there are several ways to submit a bid, depending on the solicitation requirements. For our workshop, we demonstrated an electronic document-signing workflow using Dropbox Sign (previously HelloSign), which allows contractors to prepare bid forms and addenda for electronic signatures when permitted.
However, digitally signing a document is not the same as submitting a responsive bid. Contractors must follow the specific solicitation instructions, including required forms, acknowledgments, authorized signatures, submission methods, and deadlines. Some agencies require bids through designated electronic procurement portals, while others may specify different procedures.
What’s important is submitting a complete, responsive bid before the deadline. My preferred practice is to aim for submission at least 24 hours in advance whenever possible, providing additional time to address technical difficulties, missing documents, or other last-minute issues. A competitive price means very little if the contracting authority cannot accept your bid because it was submitted late or failed to meet the solicitation requirements.
Capping the Night
To cap the night off, the contractors each received signed copies of The Principles of MESLO, and we took photos for @principlesofmeslo. The leadership also acknowledged my service as an Army Captain, and everyone thanked me for my service. I thanked everyone for their support and paused to reflect on mission and purpose.
Discovering a renewed sense of mission and purpose after military service is key to staying grounded and authentic. For me, sharing the lessons learned through entrepreneurship, federal contracting, and The Principles of MESLO is part of that renewed mission. And if the contractors who attended walk away better prepared to compete, price their work profitably, and build sustainable family-owned businesses, then that’s a rising tide that lifts all boats.
Interested in training for your group? Get in touch.