How to Write Letter

Bid Rejection Letter

When you are into business, it is by and large required to deal with multiple vendors. You are hardly involved in end-to-end production and supply of goods or services. This brings the need of a supportive factor in terms of vendor. When the bid is sent across, it may be an initiative from your side or the vendor himself may have an interest to do business with you. You have to be careful, while reviewing the bids or tenders, in accordance to the company's standards, budget and requirements. Once you have decided the vendor, who has qualified to meet your request, send bid rejection letter to those vendors who failed to meet the expectations.


Tips to deny a vendor's bid:

  1. Use a formal letterhead to write such a letter and mention the up-to-date address of the company whereby, vendors can correspond for further query.
  2. Thank the vendor for having shown interest in your company's project.
  3. After thanking the vendor, let him know with regret, about him disqualifying for the bid. However, do it in a tactful way. It is a business letter, but there is no harm in being considerate towards the vendor.
  4. Do not just inform the rejection, but also, give the reasons for the rejection of the bid. Be specific while doing so; mention the section stating why the bid failed to meet the company's expectations.
  5. In case, no vendor has qualified to meet up to your requirements, then send a notice addressing all the vendors about the reason for the cancellation of the bid. In addition, you may also specify if the bid will or will not be reissued.
  6. Keep your tone polite, the letter should aim at disqualification of the vendor for the bid and not to comment on his standards.
  7. Thank the vendor, and if you are rejecting the bid for any present contracts, then inform the vendor about the reapplication time.

Sample letter to turn down a bid:

Simple Solution Industries
75 Embarcadero Center, San Francisco, CA
United States 62318 Ph: 514-757-8981
Contact us:

Date: January 15, 2011

Adam Lee
Business Analyst
All Rounder Providers
575 Memorial Drive
Article City, MN
United States 66478
Tel: 859-491-1274

Re: Bid #764 - 01/01/2011

Dear Mr. Lee,

I, on behalf of Simple Solution Industries, thank you for submitting the above referenced bid and showing interest in our company.

Your bid was certainly impressive in terms of product quality and the monetary aspects. However, we regret that currently we are unable to accept your bid and do business with you as we are in a contract with ABC Company till May 31, 2011.

Hence, it would be our pleasure to discuss few aspects of the bid, and do business with your company in near future, following the expiry of the present contract.

We will retain your bid in our procurement department. We thank you for the time and efforts invested to offer the bid, and look forward to do business with you. Should you have any clarification required over this, feel free to contact our procurement department at 456-853-3574.

Yours faithfully,
James Baker Business Analyst

Write a friendly and detailed bid rejection letter to help keep the business relations continued in harmony in future.

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