How to Write a Business Letter of Rejection for Bids

The U.S. military solicits bids for new uniforms by publishing RFPs.

Businesses solicit bids in a variety of ways. For example, when a university needs to request bids for a standard product or service, like a janitorial service, it would publish a Request for Quotations (RFQ) on its website and in the local paper. The United States Government, on the other hand, publishes Requests for Proposals (RFP) when it needs a project developed, such as a new form of radar-evading technology for planes. Once the bids are in, the organization has to select a winning bid and reject the rest. Usually the bidders that did not win are notified via letter.

Instructions

1. Insert a piece of your company or organization's letterhead into the printer. You need letterhead because this is an official rejection of a bid.

2. Type the date. Skip a line space.

3. Type the recipient's name, organization name and the organization's address. Skip another line.

4. Start the letter by typing "Dear Mr./Ms. (Name)" followed by a colon. Skip an additional line space.

5. Open the first paragraph by telling the recipient that you are declining its bid. Identify the RFQ or RFP by name and number in case the organization had bid on several projects. You do not need to elaborate why it did not have the winning bid unless you feel that it is appropriate.

6. Thank the recipient for her interest in a new paragraph and tell her that you look forward to seeing her bids for other projects in the future.

7. Type "Sincerely," and skip three line spaces. Type your full name and title. Print the letter and sign above your typed name in blue or black ink.

References

• State of Texas: The RFP Process
• The Negotiation Experts; Request for... Procurement Processes (RFT RFQ RFP RFI); Suki Mhay & Calum Coburn
• Purdue Online Writing Lab: Writing the Basic Business Letter