
The Bidding Trap That Convinces Contractors to Lower Their Price Until There's No Profit Left
Federal bid strategy is often reduced to "lower your price," but David Rambhajan explains why he refused to do that even while losing job after job early in his career. In this clip, David breaks down the timing strategy he used bidding on VA hospital contracts in Chicago: letting competitors with less capacity race to the bottom early in the fiscal year while he waited for his margin.
He also covers how he evaluates subcontractors, why the cheapest sub is rarely the most profitable choice, and how a strict scope review protects a project's real profit.
Key points discussed:
- Why David kept losing VA hospital bids early in his career despite advice from other contractors to lower his price
- The fiscal-year bidding pattern: most federal budgets clear after the new year, so competitors with less financial capacity bid low early and burn through their bonding capacity
- How winning as the third or fourth bidder still landed David the job at the margin he needed, because earlier bidders got disqualified or ran out of capacity
- Why David evaluates certifications and programs using a "resources, risk, return" framework rather than pursuing every certification available
- How David chooses subcontractors: prioritizing subs who can follow his process and cadence over the cheapest bid, even when that means a longer scope review
- Why David considers a rigorous scope review, not a cheaper sub, the real source of protected profit and reduced project risk
CHAPTERS
0:00 - Losing early bids on VA hospital contracts in Chicago
1:10 - The pressure to lower your bid to win work
2:10 - Deciding the margin mattered more than winning early
3:15 - Understanding the fiscal-year bidding cycle
4:20 - Waiting out competitors with less bonding capacity
5:00 - Winning as the third or fourth bidder
6:05 - Evaluating certifications with resources, risk, and return
7:40 - Why the cheapest subcontractor isn't the safest choice
8:55 - Scope review as the real source of protected profit
Mindy gives you the federal opportunities, agency signals, recompete intel, and pursuit briefs that tell you not just what contracts exist, but which ones to chase and how to win them.
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