Statements of Work – Getting Them Right!!

Today’s Agenda The Basics Sources of Information Scenario #1: Procurement is in the loop Scenario #2: Drop the SOW and run!! Using the RFP Process to avoid problems

Today’s Agenda The Basics B. Sources of Information C. Scenario #1: Procurement is in the loop D. Scenario #2: Drop the SOW and run! E. Using the RFP Process to avoid problems

A. The Basics What is a SOW? What does it look like? What goes into a SOW? The simplest template Measures of Excellence

What is a SOW? “a narrative description of products or services to be supplied under contract.” PMI Project Management Book of Knowledge

“…a description of the work requirement which describes the buyer’s requirements in performance terms” IEEE (Institute of Electrical and Electronics Engineers) http://www.ieee.org/membership_services/services/financial/contracts/statement_of_work.html

“… should specify in clear, understandable terms the work to be done in developing or producing the goods to be delivered or services to b e performed by a contractor…(and)…define all performance requirements for contractor effort…” NASA

Federal Acquisition Regulations (FAR) *37.602-1 Statements of work. Generally, statements of work shall define requirements in clear, concise language identifying specific work to be accomplished. Statements of work must be individually tailored to consider the period of performance, deliverable items, if any, and the desired degree of performance flexibility . . When preparing statements of work, agencies shall, to the maximum extent practicable— Describe the work in terms of "what" is to be the required output rather than either "how" the work is to be accomplished or the number of hours to be provided . . . (2) Enable assessment of work performance against measurable performance standards; (3) Rely on the use of measurable performance standards and financial incentives in a competitive environment to encourage competitors to develop and institute innovative and cost-effective methods of performing the work . . .

What does it look like? A Statement of Work should include the following: Introduction & Background References the original agreement containing legal terms and conditions. Objectives Provides well-defined statement of the results to be achieved in order for the work to be accomplished. Identifies quantifiable criteria that must be met for the work to be acceptable and accepted. Scope of Work States briefly what the scope of work does and does not cover Includes: -an outline of the extent of work -brief overview of the steps of the project -brief description of the methodology used -description of the location of the work or where work will be performed -price breakdown

What goes into a SOW? List requirements/needs. Describe all work elements. Describe pertinent previous efforts. Describe known risks. Describe tasks in sequence. Describe reporting requirements. Describe schedules. May be a requirement for a final report. Describe work products. Describe special considerations. Describe need for formal meetings. Describe any technical data requirements. Describe the criteria for determining whether the requirements have been met. Describe the type of deliverables and what a deliverable is.

The simplest template Background and objectives Description of work to be performed Deliverables and specifications or performance standards Schedule Contractor responsibilities Purchaser responsibilities Acceptance criteria Pricing & payment Documents related to this SOW Contract information

Measures of Excellence Attributes of good SOW requirements Complete: Completely defines the buyer's need to be satisfied Consistent: Requirements do not conflict with each other Correct: All requirements are known to be achievable Clear: There is only one semantic interpretation Traceable: There is a trail to the driving requirement's need Modifiable: Any necessary change can be made completely and consistently Verifiable: It is technically possible to prove the requirements have been satisfied Implementation free: Free of design decisions, unless they are mandated constraints

THE PROBLEM a situation, person, or thing that needs attention and needs to be dealt with or solved bother, conundrum, difficulty, dilemma, dispute, doubt, enigma, issue, nuisance, poser, predicament, puzzle, quandary, question, riddle, rub, trouble, vexation

THE CHOICES

Today’s Agenda The Basics Sources of Information Scenario #1: Procurement is in the loop Scenario #2: Drop the SOW and run!! Using the RFP Process to avoid problems

Associations www.pmi.org

Project Management Institute

https://www.ncmahq.org

Books

Search Engines www.google.com ‘statement of work’

On-line Courses

Social Media LinkedIn Groups Public procurement Project management

Today’s Agenda The Basics Sauces of Information Scenario #1: Procurement is in the loop Scenario #2: Drop the SOW and run!! Using the RFP Process to avoid problems

Some Great Tools! SOW Writing Guide (RFPSOLUTIONS) SOW Guide (Arizona) Template (Montana) Instructions (California)

Document #1 http://www.rfpsolutions.ca/rfpportal/

SOW Writing Guide TABLE OF CONTENTS TITLE BACKGROUND OBJECTIVE SW4.0 ESTIMATED VALUE SW5.0 DEFINITIONS AND APPLICABLE DOCUMENTS SW6.0 BUSINESS AND/OR TECHNICAL ENVIRONMENT SW7.0 DESCRIPTION AND SCOPE OF WORK SW8.0 DELIVERABLES SW9.0 CONTRACTOR RESOURCE REQUIREMENTS & QUALIFICATIONS SW10.0 APPROACH AND METHODOLOGY SW11.0 PERFORMANCE STANDARDS AND QUALITY ASSURANCE SW12.0 REPORTING AND COMMUNICATIONS SW13.0 RISKS AND CONSTRAINTS SW14.0 CONTRACTOR RESPONSIBILITIES SW15.0 GOVERNMENT REPRESENTATIVE AND SUPPORT SW16.0 LOCATION OF WORK AND TRAVEL SW17.0 LANGUAGE OF WORK SW18.0 SECURITY REQUIREMENTS SW19.0 INTELLECTUAL PROPERTY/COPYRIGHT SW20.0 GREEN PROCUREMENT AND SERVICES SW21.0 COMMENCEMENT, DURATION AND AWARD SW22.0 CONTRACTOR’S PROPOSAL SW23.0 INSURANCE/WARRANTIES ANNEX A TASK AUTHORIZATION/CALL-UP FORM ANNEX B REPORT TEMPLATE/OTHER

Examples of Great Sections

Document #2 Guide to Preparing a Statement of Work State of Arizona, State Procurement Office https://asmi.az.gov/sites/default/files/documents/files/GUIDE%20TO%20PREPARING%20A%20SOW.pdf

Document #3 Statement of Work Template State of Montana http://sitsd.mt.gov/content/contract/docs/SOWtemplate.doc http://sitsd.mt.gov/content/contract/docs/SOWGuidelines.doc

Document #4 Instructions for preparing a statement of work (SOW) Dept. of General Services, State of California http://www.documents.dgs.ca.gov/pd/cmas/SOWMarch06-IM.pdf

What have we learned???

Thank you. Michael Asner 604/530-7881 michael@rfpmentor.com 32