5 Proposal Mistakes That Are Costing You Federal Contracts (and How to Fix Them)

If you’ve ever poured hours—or weeks—into a government proposal only to walk away empty-handed, you’re not alone. Federal contracting is brutal in that way. The smallest misstep can knock you out of the running before evaluators even read your technical brilliance or see your competitive pricing. But here’s the good news: Most of these mistakes are 100% avoidable. Let’s walk through five of the most common proposal pitfalls small businesses make—and more importantly, how to sidestep them.

The Top 5 Proposal Mistakes (Plain and Simple)

1. Ignoring Instructions
   Agencies don’t care how innovative or low-priced your proposal is if it breaks basic RFP rules. That means: follow formatting to the letter, don’t go over page limits, submit via the right portal, and never—ever—miss the deadline. GAO has backed agencies that rejected proposals for being one page too long or submitted a minute late. Create a compliance matrix and treat every “shall” and “must” like gospel.

2. Weak Past Performance
   Agencies want to know you’ve done similar work before—and done it well. If you list irrelevant projects or vague descriptions (“Provided IT services for client X”), you’re not helping your case. Highlight recent, relevant, and detailed projects. No federal past performance? Use subcontractors, commercial work, or key personnel experience. Just make sure it clearly aligns with the RFP’s scope and complexity.

3. Generic Boilerplate Language
   You can’t copy-paste your way to a win. Proposals that parrot RFP language or feel like templates get dinged fast. Evaluators want specifics: How will you solve their problem? Speak the agency’s language, reference their mission, and address evaluation factors head-on. Tailoring is not optional—it’s how you show you understand their unique needs.

4. Pricing Without a Strategy
   Pricing isn’t just numbers on a spreadsheet—it’s a trust exercise. Underbid without a rationale and you’ll get hit for being unrealistic. Overbid without explaining your value and you’ll lose on cost. Worse, front-loading or unbalanced pricing can get your proposal tossed entirely. Use a clear Basis of Estimate, tie costs to your technical solution, and explain any pricing variances upfront.

5. Overlooking Compliance
   Compliance isn’t paperwork—it’s your ticket to stay in the game. Miss a required form, forget to acknowledge an amendment, or let your SAM registration lapse, and your proposal can be eliminated before it’s even evaluated. Don’t assume “they’ll ask if something’s missing.” Many won’t. Use a checklist, double-check certifications, and treat compliance as non-negotiable.

Why This Matters to Small Businesses

If you’re a small or disadvantaged business, you already have to work harder to compete with well-resourced primes. That’s why you can’t afford to lose on preventable errors:

• A blown page limit is a wasted opportunity for an 8a contracts services firm trying to break into a new agency.

• A generic response sinks your shot at leveraging that hard-earned women owned small business certification.

• Pricing mistakes can tank even the strongest proposals from firms with SBIR Grant Assistance experience or disabled veteran small business certification.

Bottom line: These mistakes cost time, trust, and money. And they’re avoidable.

How to Win More (Without Burning Out Your Team)

Here are a few habits that separate consistent winners from one-and-done bidders:

• Start every proposal with a compliance matrix and checklist—map every requirement and track it through completion.

• Use color team reviews (especially Red Team) to get fresh eyes on your proposal. Even a partner or mentor can flag issues you’ve gone blind to.

• Customize, customize, customize. Use the agency’s name, mission priorities, and past pain points. Evaluators know when you’re mailing it in.

• Build a clear pricing narrative. Don’t assume the numbers speak for themselves—tell the story of why your price makes sense.

• Stay current on certifications. Keep your SAM.gov, Reps & Certs, and required registrations up to date—whether you’re seeking women business certification, sba 8a certification, or aiming for federal contracting certifications down the line.

The Big Picture

Winning in federal contracting isn’t just about having the best service or product. It’s about presenting it in a way that’s tailored, compliant, and easy for evaluators to score. You’re not just writing proposals—you’re proving your company is capable, responsible, and ready to deliver.

Want to dig deeper into practical tips that’ll actually help you win contracts (not just survive them)? Check out our blog post: “The Email You Should Be Sending Every Week to Contracting Officers (But Probably Aren’t)”. It’s a simple strategy with serious impact.

If you aren't a Squared Compass partner, what are you waiting for? From getting your business set up with specific government set aside programs at both the State and Federal level, to being empowered by a Fractional Capture team to win government contracts, to receiving tailored government contract opportunities Squared Compass delivers immense value which helps propel our partners to success. Schedule a chat with our team today.