It is very hard to say “let’s not bid for this” when the project is something you know your company to do and do well!
Many companies do not have a robust ‘bid/no bid’ process that prevents a business from bidding for work that they have little chance of winning.
Responding to Requests for Proposals (RFPs) is expensive and a drain on resources. You should focus those resources on opportunities where you have a better chance of winning and in effect picking your battles. It is far better to bid for four projects and win three of them, than to bid for ten and only win two.