the statement of work
DESCRIPTION
The Statement of Work. A Seller’s Perspective. What Should Be in the SOW. What do you want? Full description and specifications of the product or service requested. When do you want it? A delivery schedule clearly stating what item(s ) are delivered when. Where do you want it? - PowerPoint PPT PresentationTRANSCRIPT
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The Statement of WorkA Seller’s Perspective
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What Should Be in the SOWWhat do you want?
◦ Full description and specifications of the product or service requested.
When do you want it?◦ A delivery schedule clearly stating what
item(s) are delivered when. Where do you want it?
◦ Delivery destination / FOBWho provides what?
◦ What information or materials will the seller provideHow well must it (or I) perform?
◦ Quality / performance specifications and acceptance criteria.
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Statement of Work DocumentsBasic SOW
◦ Textual narrative describing the what, where, when, etc.
Drawings◦ Blueprints or CAD Files
Specifications (typically referenced)◦ Government Specifications
Safety Logistics Support / spare parts
◦ Industry Specifications National Electric Code IEEE
Schedule (e.g., delivery or deployment)Contract Work Breakdown Structure (WBS)
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Nature of WorkDifference in statement of work for various
types of work◦ ID/IQ for Research & Development
SOW written loosely so as to include as many potential task orders as possible
Typically a cost-reimbursement or T&M effort◦ Manufacturing
SOW written to include product features, performance criteria, reliability, delivery date, etc.
Could be performance based Usually a Fixed Price effort
◦ Construction SOW very exact and supplemented with detailed drawings,
specifications, and other technical guidance Usually Fixed Price / sealed bid.
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Balancing Requirements and Risk
The degree of SOW specificity is a determinate of risk◦ Build to print construction
contract High level of detail in the specs
Fully developed design by professional A/E
Established industry standards Relatively low risk for seller
◦ Manufacture novel robotic system Performance specifications Little ‘how-to’ information Relatively high risk for seller
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How do Sellers view the SOW? In Project Management terms it is the project scope
statement It is regarded as the roadmap to successful
contract performance◦ “All you have to do is fulfill the SOW requirements”
Those things NOT specified are up to the contractors discretion◦ “If it was important you would have told me you wanted
it”.◦ “If you wanted me to do something else you would have
said so”.All things not forbidden are permitted If there are two ways to interpret a requirement,
then the way that favors me is correct.
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What do Sellers do With the SOWStep One – Decompose
◦Generate a requirements list / matrix from each document in SOW
Step Two – Analyze◦Each requirement is reviewed to
determine Is the requirement mandatory ? Should we accept the requirement or take
exception? Can it be met with our product / service? How do we satisfy it?
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What do Sellers do With the SOWStep 3 - Organize
◦Requirements are grouped logically or functionally Work Breakdown Structure Product requirements definition Delivery Schedules
Step 4 - Strategize◦Determine products or means to
fulfill requirements
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What do Sellers do With the SOWStep 5 – Plan
◦Create a detailed plan for execution What will be provided When will it be delivered What resources or materials will be needed
Indigenous Outsourced
◦Document plan in proposal to customer Parrot the requirements back to the
customer
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What do Sellers do With the SOWStep 6 – Determine risks
◦Contract type◦Performance◦Technical
Step 7 – Determine likely costs◦Price each requirement◦Sequence to meet delivery schedule
Step 8 – Determine sell price◦Risk is a key element in determining
price
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There is always an ExceptionWhat happens if Government
uses a Statement of Objectives?◦SOO is a broad description of the
desired attributes of the product or the outcomes of the effort.
◦Contractors will write their own SOW to accompany their proposal
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If writing your own SOWDO
◦Keep it short and simple (KISS)◦Describe what you are going to provide in
specific terms What product or services When will they be delivered Where will they be delivered (FOB Source ?)
◦ Include quality requirements and acceptance criteria
◦ Include references to industry or national standards that you customarily observe
◦Cite your normal commercial practices and define them as necessary
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If writing your own SOWDO NOT
◦Attempt to write the whole contract – remember: KISS
◦Insert unnecessarily restrictive language
◦Cite specifications or references based on other contracts unless you know they apply
◦Simply cut-and-paste without proof reading and editing – no two efforts are ever exactly the same.
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Questions