THE STATEMENT OF WORK (SOW):

A BRIEF REVIEW OF RESOURCES FROM THE WEB

 

 

The Statement of Work is critical to the success of any procurement process. It is, however, a neglected area. Many, if not most, of the 80,000 public entities in the U.S. provide NO TRAINING to program or procurement staff. This lack of training is a significant contributor to procurement problems, delays, project overruns and litigation.

 

This document identifies SOW resources. It is not comprehensive but only a beginning. If you know of other resources that should be included in this document, please send an email to Michael Asner. My email is: institute@rfpmentor.com

 

[The full article first discusses the characteristics of a successful statement of work. It then identifies SOW resources in 4 major categories.]

 

In searching the web, we found a number of different types of resources:

1. Training – There appear to be 2 types of training: instructor-led, and web or CD-based. This report identifies 6 sources of instructor-led live training, and one source of CD-based training. The CD-based training is a new product which we released Sept. 15, 2005.
2. Templates – We identified 4 different templates, of varying complexity and sophistication.
3. Guides & Manuals – We identified 5 different ‘how to’ manuals published by federal, state and local jurisdictions and available on the web.
4. Other Stuff – This category contains all of the entries which didn’t fit easily into the other categories. It contains books, kits, and other web sites.

 

[In this extract, we present the material from one type of resource only.]

 

1. St. Johns River Water Management District

Guide to Preparing a Statement of Work (24 pgs.)

 

This 24-page guide is easy to read and contains lots of examples and hints. The Appendix contains 10 examples of cost and fee schedules.

                                                                                                                                                                       

http://www.sjrwmd.com/programs/mgmt_admin/admin/bids_contracts/pdfs/sow_planner_v1-1.pdf

 

GUIDE TO PREPARING A STATEMENT OF WORK

Table of Contents

 

INTRODUCTION/BACKGROUND

·         This section identifies the need for this particular work, cites the contract’s goals, describes the location of the work, and identifies how the contract work fits into the District’s mission and goals.

·         This section should consist of no more than three to four paragraphs.

 

OBJECTIVES

·         These are well-defined statements of the results to be achieved in order for the overall mission of the work to be accomplished.

·         The objectives should be quantifiable criteria that must be met for the work to be considered successful.

 

SCOPE OF WORK

·         This section briefly states what the scope of work does and does not cover. The scope of work paragraph should be limited to what is necessary to convey the intent of the contract.

·         It includes an outline of the extent of the work, a brief overview of the steps of the project, a brief description of the methodology to be used, and a description of the location of the work.

 

TASK IDENTIFICATION

·         Tasks are activities and milestones that need to be completed to accomplish the contract objectives. Tasks can be structured by milestones, deliverables, or processes.

·         Include the following in this section:

 

·                     A clear delineation of responsibilities

·                     A detailed description of each work          element

·                     The approach or methodology

·                     Timelines and deliverable            requirements with each task       description

·                     District support in terms of equipment, staffing, computers, software, or subcontractors, as applicable

 

·                     A clear description of any specific equipment or software compatibility requirements

·                     Identification of documentation that must be followed or used as guidelines

·                     Clear instruction of contract phasing or sequencing, if necessary

 

TIME FRAMES AND DELIVERABLES

·         Specify time frames as they apply to completion of tasks, milestones, and/or completion of the entire contract.

·         State what the contractor is responsible for delivering during the course of the work and at the end of the project, as applicable.

·         Deliverables should:

·                     Be specific

·                     Have clear instructions regarding their submission

·                     Clearly define the manner in which the District will determine if they are acceptable

 

CONTRACT BUDGET

·                     Reference the District budget

·                     Other factors that may affect the budget:

·                     Source and any conditions for expenditure of outside funding, specifically, state or federal

·                     Matching funds for cost-share agreements, including in-kind services

·                     Retainage (10% or none)

·                     Bonding and insurance requirements

·                     Renewals with escalation clause, if applicable

·                     Phasing — over two or more fiscal-year periods

·                     Availability and approval of future fiscal year funding

The contract budget is used to determine how much the contractor is to be paid for the tasks and project, as well as how payments are to be issued and on what basis. Examples are:

·                     Fixed increments

·                     Time and material

·                     Percentage of completion

·                     Reimbursable

·                     Advance

·                     Lump sum method

 

OTHER FACTORS TO CONSIDER IN SOW PREPARATION

·         Contract location

·         District responsibilities

·         Contractor responsibilities

·         Acceptance testing

·         Proposed contractor options/alternatives

·         Stop/go decisions

·         Cost /benefit analysis and implementation recommendations

·         Solicitation statements of work

 

APPENDIX

 

2. County of San Diego

Development of the Statement of Work (24 pgs.)

 

This 24-page manual deals with many of the important elements. It provides a lot of guidance to writers in terms of writing hints and appropriate words to use. In addition it has a checklist (reproduced below) which can be used to evaluate the adequacy of a SOW.

 

www.co.san-diego.ca.us/cnty/cntydepts/CAR/policies/SOW.pdf

 

Table of Contents

 

SECTION A - OVERVIEW OF STATEMENTS OF WORK

INTRODUCTION

DEFINITIONS

BASIC REQUIREMENTS OF STATEMENTS OF WORK

FLEXIBLE NATURE OF THE STATEMENT OF WORK

TYPE OF REQUIREMENT: COMPLETION OR TERM

PHASE-BY-PHASE APPROACH

CONTRACTUAL/ADMINISTRATIVE REQUIREMENTS

 

SECTION B - DEVELOPING THE STATEMENT OF WORK

INTRODUCTION

BASIC PLANNING

OUTLINING THE STATEMENT OF WORK PROCESS

ORGANIZING THE SOW TEAM

WRITING AND REVIEW

 

SECTION C - STATEMENT OF WORK FORMAT

INTRODUCTION

DESCRIPTION OF FORMAT

ATTACHMENTS TO STATEMENTS OF WORK

 

SECTION D - THE LANGUAGE OF STATEMENTS OF WORK

INTRODUCTION

EXHIBIT 1 - CHECKLIST FOR DETERMINING ADEQUACY OF STATEMENTS OF WORK EXHIBIT 2 - USEFUL "WORK WORDS"

EXHIBIT 3 - OPEN-ENDED PHRASES (ambiguous--avoid if possible)

WORDS WITH MULTIPLE MEANINGS

 

 

EXHIBIT 1

CHECKLIST FOR DETERMINING ADEQUACY OF STATEMENTS OF WORK

 

Does the statement of work:

·         Include only what is necessary for the department to obtain required results?

·         Identify the contractor's responsibilities?

·         Distinguish background/introductory information from contract objectives and requirements?

·         Provide enough detail to permit the prospective contractor to estimate costs of labor and other resources needed to accomplish each task or phase of the work?

·         Clearly specify duties, results and performance standards so that the contractor and the County representative monitoring performance and signing acceptance reports can tell whether the contractor has complied with all requirements?

·         Clearly relate tasks to each other and to desired results and deliverables?

·         Identify constraints and limitations?

·         Specify all data requirements?

·         Show proper quantities?

 

 

 

·         If there is a time-phased requirement for completion of an activity or delivery of an

• item, specify whether elapsed time will be counted as calendar days or as work days?
• Properly cite and reference any standard specifications or paragraphs that apply in
• whole or in part?
• Properly reference (describe/cite) other documents, in part or in whole, when
• necessary?
• Clearly specify reporting requirements (technical and progress/compliance), including
• timing, content and level of detail?
• If a competitively negotiated procurement is planned, provide through its task
• descriptions an adequate frame of reference for the offerors' technical proposals, with
• sufficient detail to permit equal. understanding by all offerors?

 

3. State of Georgia

Request For Proposal Manual

Section 3 – Guide to Developing a Statement of Work (8 pgs.)

 

This 8 page section contains a good description of the purpose and content of each section of a SOW. It also contains a good description of the writing process – the steps involved in obtaining the        required data and then creating each section.

 

Seven sections in the Development of a Statement of Work

·         Determine the Overall Objective.

·         Establish the Tasks to be Performed.

·         Establish Mandatory Project Specifications

·         Determine the Products to be Delivered.

·         Determine the Acceptable Performance Levels.

·         Determine how you intend to Monitor Performance Levels.

·         Determine the consequences of Unacceptable Performance.

 

http://statepurchasing.doas.georgia.gov/00/channel_title/0,2094,35226973_36294590,00.html

 

4. NASA

Statement of Work (SOW)

 

This 34-page manual is more complex than others. NASA is a federal institution and its procurements are large compared with most state and local governments. Even so, this manual contains some extremely useful information. It’s readable and the comments are incisive. Some sections, such as the document review checklist (reproduced below), can be easily transferred to jurisdictions both small and large.

 

http://www.acqnet.gov/Library/OFPP/BestPractices/pbsc/library/NASAguidance-ws.html

 

CONTENTS

CHAPTER 1: REQUIREMENTS DOCUMENTS

101 GENERAL

102 ALTERNATIVES TO A STATEMENT OF WORK

103 STATEMENTS OF WORK

104 KINDS OF STATEMENTS OF WORK

105 NASA POLICY

 

CHAPTER 2: STATEMENT OF WORK CONSIDERATIONS

201 ADVANCE PLANNING

202 PREPARATION GUIDANCE

203 PROTECTING THE INTEGRITY OF THE        PROCESS

204 KEY PARTICIPANTS

 

CHAPTER 3: REQUIREMENTS ANALYSIS

301 GETTING STARTED

302 WORK BREAKDOWN STRUCTURES (WBS)

303 GATHERING HISTORICAL DATA

304 PROJECT WORK BREAKDOWN STRUCTURES

305 CONTRACT WORK BREAKDOWN   STRUCTURES (CWBS)

306 GOVERNMENT COST ESTIMATE

 

CHAPTER 4: PERFORMANCE (BASED) WORK STATEMENTS (PWS)

401 GENERAL

402 GUIDELINES FOR WRITING A PWS

403 PBC INTERNET REFERENCES, GUIDANCE             AND TRAINING

 

CHAPTER 5: OTHER CONSIDERATIONS

501 SINGLE PROCESS INITIATIVE (SPI)

502 STANDARDS AND DIRECTIVES

503 THE METRIC SYSTEM

504 VALUE ENGINEERING (VE)

505 SHARED SAVINGS

 

 

APPENDIX A
DOCUMENT REVIEW CHECKLIST

 

The following Checklist should be reviewed prior to forwarding the PWS/specification for approval. It is a guide only, and items should be added or deleted to tailor it to the specific document.

 

1. Can I give the contractor full management responsibility and hold them accountable for the end results? Can I perform a meaningful evaluation of performance? Does my draft PWS reflect this strategy?
2. Is the PWS sufficiently detailed to permit both the Government and the contractor to estimate costs, to tabulate labor and other resources required to accomplish each task element? Will the contractors be able to prepare a sound technical and cost proposal?
3. Are standards clear that make it possible for all parties to measure performance?
4. Is the PWS/specification too restrictive? Does it tell contractors how to run their business?
5.  Are proper quantities and delivery dates indicated for each deliverable?
6. When necessary to reference other documents, is the proper reference document described and cited? Is the entire document pertinent to the task or should only portions be referenced? Is it cross-referenced to the applicable SOW task element?
7. Have all requirements for data been specified separately in a Data Requirements section? Have all extraneous data requirements been eliminated? Are requirements specified adequately to obtain sufficient data to permit competition for anticipated follow-on procurements?
8. Have appropriate Government and industry standards been researched and referenced in the PWS, as necessary? Have requirements to use Government standards been limited to those where it is impractical to use non-Government standards? Have options been provided for proposers to recommend suitable replacement of Government standards with non-Government Standards?
9.  Are all safety, reliability, quality assurance, and security requirements defined for the total life of the contract?
10. Has extraneous material been eliminated?
11. Has the document been checked for format and grammar? Are subheadings compatible with the subject matter of the heading? Is the text compatible with the title? Is a multi-decimal or alpha-numeric numbering system used in the PWS that can be cross-referenced to the CWBS?
12. Are all terms used consistently throughout, and adequately defined, including "industry-wide" terms?
13. Does the PWS cover the requirements imposed on the contractor's quality system to ensure that products conform to requirements?
14. Does the PWS cover any design or process control requirements required by NASA?
15. Does the PWS cover any specific Government requirements for inspection and testing?
16. Does the PWS provide for corrective/preventive action by the contractor in the event the product delivered is non-conforming to the specified product?

 

5. Dept of Defense

Handbook for Preparation of Statement of Work (SOW)

 

This 45-page document, which is surprisingly short given the complexities of federal procurement, contains some solid direction and insights into the process.

 

The small size of the document is explained, in part, by Section 2 – Applicable Documents. This section lists 15 other documents that “form a part of this document”. These documents include parts of FAR (federal acquisition regulations), Dept. of Defense handbooks, directives and forms.

 

 

http://www.acqnet.gov/Library/OFPP/BestPractices/pbsc/library/DODhandbook.pdf

 

Since many readers of this Report will never access this site to review this DoD manual, I’d like to point out some of the valuable material that can be easily migrated to other small jurisdictions. In the Foreword, they emphasize the recent growth in complexity of SOWs by illustrating the SOW for the Wright Brothers’ first plane.

 

 

This document includes several sections which are directly applicable to ALL SOWs, not only the large complex ones produced by the Dept. of Defense.

 

Section 3.6.7 deals with the style of the writing. It provides insights and direction which, when followed, will improve the quality of any SOW:

 

3.6.7 Language Style. SOW requirements should be written in language understandable to all potential program participants. Requirements should be stated explicitly in a topical, logical, chronological, or similarly structured order, avoiding words which allow for multiple interpretations. Use technical language sparingly with simple wording predominating in concise sentences. Use "shall" whenever a provision is mandatory. “Will” expresses a declaration of purpose or intent; for example, "The Government will review all recommendations and provide direction within thirty calendar days". Use active rather than passive voice; for example, "The contractor shall establish a program", not "A program shall be established by the contractor.” Spell out acronyms and abbreviations the first time and put the abbreviated version in parentheses after the spelled-out phrases. This will define them for each subsequent use . . .   Use verbs that identify work and performance task requirements (See Appendix B) and answer the explicit question: "What are the work requirements?" When selecting the appropriate work word which properly expresses the degree of contractor involvement, the SOW writer must explicitly define the total nature of the work requirement.   Avoid using “Any,” “Either,” “And/Or,” as these words imply that the contractor can make a choice which may not support the intent of the SOW. Do not use pronouns. Repeat the noun to avoid any misinterpretation. Terminology should be consistent throughout the SOW. When referring to a specific item, use the same phrase or word, particularly when referring to technical terms and items. Where words can be spelled in several different ways, employ the most common spelling. Make every effort to avoid ambiguity. A list of ambiguous phrases is provided in Appendix C.

 

Section 4.2.2 deals with words to be avoided.

 

4.2.2 Terminology. A frequent problem encountered in defining the tasks in an SOW is the use of non-specific words and phrases such as: “any”, “assist”, “as required”, “as applicable/as necessary” and “as directed”. Do not use any of these words. The following rationale for precluding their use is provided: ·         Any. "Any" is an ambiguous word. Writers may intend it to denote "plurality" and readers may interpret it to denote "oneness”. Also, when "any" is used to describe the selection of items from a list, it's the reader who does the selecting, not the writer. Which items, and how many the reader selects are beyond the control of the writer. ·         Assist. “Assist” connotes personal services. It infers working side-by-side, being subject to supervision. The word is totally undefined in terms of identifying the work and its range and depth. Spell out explicitly what the contractor must do. ·         As required. The result of this approach is an undefined work condition. It has no expressed limitations. It places the Government in a position of not expressing its minimal needs. It could lead to a debatable condition concerning the contractor's compliance with the contract or order. The SOW must be declarative as to its minimal needs . . .

 

APPENDIX B provides a list of good key words.

 

WORK WORDS/PRODUCT WORDS

 

B.1 Select the key word that properly expresses the degree of contractor involvement. Specify

what is to be done and the total nature of the work requirement. The word list provided in this

Appendix is not complete but is provided to stimulate the thinking of the SOW writer by

pointing out the critical differences in the meaning of work words versus the product words

identified in connection with deliverable data.

 

B.2 Work words. When selecting the key work word that properly expresses contractor's

involvement, the SOW writer must define explicitly the total nature of the work requirement in

terms of what is to be done. In some cases, the "why" or the application of the results of the

performed work may be stated if it clarifies the requirement. The following sample list contains

words which have the inherent value of work. This list is offered as a reminder of the various

shades of meaning conveyed by choice of words.

 

analyze (solve by analysis)

annotate (provide with comments)

ascertain (find out with certainty)

attend (be present at)

audit (officially examine)

build (make by putting together)

calculate (find out by computation)

consider (think about, to decide)

construct (put together; build)

control (direct; regulate)

contribute (give along with others)

compare (find out likeness or differences)

create (cause to be; make)

determine (resolve; settle; decide)

differentiate (make a distinction between)

develop (bring into being or activity)

define (make clear; settle the limits)

design (perform an original act)

evolve (develop gradually, work out)

examine (look at closely; test quality of)

explore (examine for discovery)

extract (take out; deduce, select)

erect (put together; set upright)

establish (set up; settle; prove beyond dispute)

estimate (approximate an opinion of)

evaluate (find or fix the value of)

fabricate (build; manufacture, invent)

form (gives shape to; establish)

formulate (to put together add express)

generate (produce, cause to be)

identify (to show or to find)

implement (to carry out, put into practice)

install (place; put into position)

inspect (examine carefully or officially)

institute (set up; establish, begin)

interpret (explain the meaning of)

inquire (ask, make a search of)

integrate (to add parts to make whole)

investigate (search into; examine closely)

judge (decide; form an estimate of)

make (cause to come into being)

maintain (to keep in an existing state, to continue in, carry on)

manufacture (fabricate from raw materials)

modify (to change, alter)

monitor (to watch or observe)

notice (comment upon, review)

observe (inspect, watch)

originate (initiate, to give rise to)

organize (integrate, arrange in a coherent unit)

perform (do, carry out, accomplish)

plan (devise a scheme for doing, making, arranging activities to achieve objectives)

probe (investigate thoroughly)

produce (give birth or rise to)

pursue (seek, obtain or accomplish)

reason (think, influence another's actions)

resolve (reduce by analysis, clear up)

record (set down in writing or act of electronic reproduction of communications)

recommend (advise, attract favor of)

review (inspection, examination or evaluation)

revise (to correct, improve)

study (careful examination or analysis)

seek (try to discover; make an attempt)

search (examine to find something)

scan (look through hastily, examine intently)

screen (to separate, present, or shield)

solve (find an answer)

test (evaluate, examine)

trace (to copy or find by searching)

track (observe or plot the path of)

update (modernize, make current)

 

APPENDIX C provides a list of phrases that have several meanings are therefore to be avoided:

 

 

To the satisfaction of the contracting officer,

As determined by the contracting officer,

In accordance with instructions of the contracting officer,

As directed by the contracting officer,

In the opinion of the contracting officer,

In the judgment of the contracting officer,

Unless otherwise directed by the contracting officer,

To furnish if requested by the contracting officer,

All reasonable requests of the contracting officer shall be compiled with,

Photographs shall be taken when and where directed by the contracting officer.

In strict accordance with,

In accordance with best commercial practice,

In accordance with best modern standard practice,

In accordance with the best engineering practice,

Workmanship shall be of the highest quality,

Workmanship shall be of the highest grade,

Accurate workmanship,

Securely mounted,

Installed in a neat and workmanlike manner,

Skillfully fitted,

Properly connected,

Properly assembled,

Good working order,

Good materials,

In accordance with applicable published specifications,

Products of a recognized reputable manufacturer,

Tests will be made unless waived,

Materials shall be of the highest grade, free from defects or imperfections, and of grades

approved by the contracting officer.

Kinks and bends may be cause for rejection,

Carefully performed,

Neatly finished,

Metal parts shall be cleaned before painting,

Suitably housed,

Smooth surfaces,

Pleasing lines,

Of an approved type,

Of standard type,

Any phrases referring to "The Government inspector".

The full report is 23 pages long. It is contained in Issue 50 of The RFP Report. It can be viewed and downloaded from our website:

 

www.rfpmentor.com

Click on RFP Report.

 

 

*****************************************************************

**********ANNOUNCING A NEW TRAINING CD**********

How to Develop an Effective Statement of Work:

A Best Practices Training CD by Terry Davenport

 

http://www.rfpmentor.com/institute.html

 

 one hour PowerPoint presentation narrated by Terry Davenport

 60 page Resource Guide

 License

 $195

 

"If I could choose one person to write a Statement of Work for me, it would be Terry. As Contract Administrator for Western States Contracting Alliance, he wrote Statements of Work for major procurements involving hundreds of millions of dollars. And they were solid and they worked!"

 

      Jim O'Neill, CPPO, FNIGP

      Director of Procurement, Ft. Collins (CO)

      Past President of NIGP

 

 

*********************************************************************

*****ANNOUNCING A NEW INTERACTIVE WEBCAST*****

How To Develop An Effective Statement Of Work:

A Best Practices Webcast by Terry Davenport

 

http://www.rfpmentor.com/webcast.html

 

A live, 90 minute, interactive web conference that you can join from your office on Thursday, November 17th, 2005

 

Many procurements fail, are unnecessarily complex, or result in complaints and litigation because the Statement of Work was deficient. Terry Davenport knows the key to success is simple: prepare a SOW that balances functionality with budgetary requirements, policy restrictions and the legal issues. This seminar will show you the step-by-step process that leads to an effective statement of work.

Our Agenda

By the end of the seminar, you will have learned a step-by-step process for creating an effective statement of work. This process is described and illustrated with examples from Terry’s 60-page Resource Guide. (Each participant gets a copy of the Resource Guide.)

* Workshop Objectives

* Important Definitions

* Market Research

* Do’s and Don’ts

* Purpose/Objectives

* Scope of Solicitation

* Invitation for Bid Specifications

* RFP Specifications

* Contract Scope of Work

* Contract Protections

* Examples

* Questions to Guide SOW Development

* How to Use Example Directives

Participants (buyers and program personnel) will gain an understanding of the components of the SOW for various types of solicitations as well as useful guidance and writing tips for each. The 60-page Resource Guide is a handy reference tool. This course will take the mystery and misery out of the statement of work development process. It has been designed for use by both buyers and program/user person.