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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 Presentation
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The Statement of WorkA Seller’s Perspective
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.
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)
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.
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
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.
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?
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
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
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
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
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
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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