7 Proposal Mistakes That Cost Small Businesses State & Local Contracts
7 Proposal Mistakes That Cost Small Businesses State & Local Contracts
Winning government contracts isn’t just about being the lowest bidder — it’s about submitting a clear, compliant, and persuasive proposal. Yet too many small businesses lose opportunities because of avoidable errors.
Here are seven common mistakes that can sink your state and local proposals — and how to avoid them.
1. Ignoring Formatting Instructions
Every RFP spells out submission requirements, which can often even include font size, page limits, file naming, and number of copies. Missing even one detail can disqualify you.
Fix: Create a compliance checklist before you start writing.
2. Weak Executive Summary
Agencies want to see why your solution matters quickly. Many small businesses jump straight into technical detail without explaining the benefits. I’ve watched many writers “start” with th Executive Summary because it is the first section in the proposal. What can they possibly summarize? Write the Executive Summary -last- and capture the key points about your company, the approach, your solution, and possibly the price if it is already included elsewhere in the same document. Don’t include the price if the instructions require submitting that in a separate document.
Pro Tip: Lead with outcomes — cost savings, efficiency, or community impact.
3. Overlooking Required Forms
From affidavits to subcontractor lists, local RFPs often come with multiple attachments. Missing one form can invalidate the entire proposal.
Pro Tip: For new proposal teams, assign someone to handle compliance forms separately from the narrative. Fill these early on and line them up for signatures well ahead of the due date. Be on the alert for requirements for a notarized signature - these are common in state & local solicitations, and can add some timeline.
4. Focusing Only on Price
Price matters, but state and local agencies rarely award to the cheapest bidder. They want a partner who is reliable, compliant, and trustworthy. If there is an evaluation scorecard in the RFP, review and critically analyze your competitiveness. Price is usually worth 20-35% of the scoring for a state or local contract.
Pro Tip: Show value — not just cost savings. You want to be “Better, Cheaper, and Faster” - not just “Cheaper.”
5. Generic Responses
Some businesses recycle the same boilerplate text across bids. Evaluators spot it instantly — and it signals that you don’t understand their agency’s needs.
Pro Tip: Never use a “template.” Tailor each proposal. Show you’ve read the RFP closely and understand their goals, and align the proposal to either exactly match the verbatim specifications in the RFP, or follow the RFP’s order of requirements, if not specified. AI is a powerful tool for quickly customizing commonly used blocks of content, without making the mistake of leaving some other agency’s name embedded in the text. Oops!
6. Ignoring Local Preferences
Many states and municipalities offer evaluation incentives. For example, California agencies apply bid incentives for DVBE-certified firms. Missing these opportunities leaves points on the table.
Pro Tip: Research incentive programs and thoroughly review the RFP for the same before writing.
7. Not Proofreading
Typos, inconsistent formatting, or sloppy graphics suggest a lack of professionalism. Evaluators may assume your performance will be equally careless.
Pro Tip: Always build in time for a final review. I typically conduct three full revisions of the proposal: an outline, a first draft (which includes a rough approach and answers), a second draft (with narrative content), and a final draft that focuses solely on completing formatting, pagination, and paragraph numbering.
Final Thoughts
Avoiding these mistakes doesn’t guarantee a win, but it does keep you competitive. Small businesses that submit clean, compliant, and tailored proposals often outperform larger firms. If you need assistance, editorial help, or guidance getting started, connect with us today.
For a full step-by-step guide to building winning proposals, check out my book:
