The Statement of Work

1. The Statement of Work A Seller’s Perspective

2. 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? • Delivery destination / FOB • Who provides what? • What information or materials will the seller provide • How well must it (or I) perform? • Quality / performance specifications and acceptance criteria.

3. Statement of Work Documents • Basic 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)

4. Nature of Work • Difference 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.

5. 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 Balancing Requirements and Risk

6. 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.

7. What do Sellers do With the SOW • Step 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?

8. What do Sellers do With the SOW • Step 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

9. What do Sellers do With the SOW • Step 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

10. What do Sellers do With the SOW • Step 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

11. There is always an Exception • What 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

12. If writing your own SOW • DO • 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

13. If writing your own SOW • DO 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.

14. Questions