*Presented by theDepartment of General ServicesBureau of Procurement

Course ObjectivesWhen you have completed this course, you should be able to:Understand what a Statement of Work is and its purpose.Understand how to prepare a good Statement of Work and what is included.Understand things to avoid when writing a Statement of Work.Understand how to formulate the different components of the Statement of Work.Understand the consequences of a poor Statement of Work.

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A Historical Perspective on the Statement of WorkGovernment agencies today must be good stewards of the taxpayers money and deliver successful projects as efficiently and as cost effectively as possible. The statement of work is one document that can help ensure project success. The significance of this document makes it important to understand how the Statement of Work (SOW) originated and what generated the original need for SOWs.*

The earliest use of a formal SOW in modern history occurred in the early 20th century, when it was used primarily in government contracting. In 1908, the United States Signal Corps drafted a general requirements document to identify the required specifications of the Wright Brothers heavier-than-air flying machine. The document was approximately one page in length and included requirements such as: be easily taken apart for transport in Army wagons and be capable of being reassembled for operation in an hour, carry 350 pounds for 125 miles, and maintain 40 miles per hour in still air. Compared to SOWs used in business today, which can easily exceed 100 pages, this was a relatively simple document for a very complex product.A Historical Perspective on the Statement of Work*

Today, the government requires a much more in-depth document and description of what the SOW should look like and the level of detail that should be included. 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, and the desired degree of performance flexibility.A Historical Perspective on the Statement of Work*

Statement of WorkOverviewOverview. The purpose of this course is to provide guidance on how to write a Statement of Work (SOW) for service-type contracts. It will discuss several key elements that should be contained in the SOW and address some of the important things to consider when writing a SOW. A well-written SOW can prevent disagreement, misunderstanding, and eventual disputes between the government and the contractor as to the expectations of the work to be performed.*

Definition. A Statement of Work is a document that accurately describes a service requirement in terms of output requirements and the required quality level or standard of acceptable performance of outputs. Basically the SOW tells what needs to be accomplished not how to do the work.Statement of WorkDefinition*

Purpose. The SOW serves as a guideline of the agreements on performance between a purchasing organization and a seller materials and/or services. As a component of the contract, it is often used to settle disputes over what work should or should not be included in a project. It establishes expectations for a variety of issues in the contract relationship.Statement of WorkPurpose*

Tips For Preparing a Good Statement of WorkNow lets discuss some tips that will help you write an effective SOW.Try to use plain and simple language in writing your SOW, and avoid jargon, vague terms and rambling sentences. While there is a natural tendency to want to cover all possible contingencies in a SOW and to establish the basis for an ironclad, no-risk, enforceable contract, this often leads to excessive legalese creating confusion, misunderstandings and contradictions. Ask yourself: What would a reasonable person looking at this conclude?*

There is huge potential within a SOW for overlap, duplication, and/or contradiction with the Terms and Conditions of the resulting contract. Remember the contents of the SOW are variable to define the requirement(s) at hand vs. the standard terms and conditions and if an item is covered in the standard terms and conditions do not include it in the SOW. Use generic (non-proprietary) terminology and references in describing your requirements. This allows for greater competition and it also minimizes the risk of a bid challenge or allegation that the requirements were slanted to a particular supplier.Tips For Preparing a Good Statement of Work*

The words will and shall have specific, legal meaning within a SOW. The word shall is always used to convey a binding provision on the Contractor (i.e. The Contractor shall supply). The word will is always used to convey a declaration of future action by the Buyer/Government (i.e. The Government will provide the Contractor with). Be careful how those words are used in the SOW.Remember to spell out acronyms and provide definitions for any technical or unique terms used within your SOW.Tips For Preparing a Good Statement of Work*

In summary, try to do your best in conveying to the contractor what the requirement is and what it will take on their part to complete the work to the governments satisfaction. If you are ever in doubt about whether to include something or not, check with your legal office for advice.Tips For Preparing a Good Statement of Work*

Preparing the Statement of WorkIn preparing to write the Statement of Work, answer the following questions: What is the agency trying to achieve? What is the use, needed functionality, or outcome expected? What is the existing environment or framework that must be considered?*

Things to Avoid in the Statement of Work When writing the Statement of Work, avoid:Use of contradictory terms or statements, which may lead to confusion of Statement of Work requirements;Ambiguity in language, which can cause project delays, amendments, cost overruns, and/or less desirable outcomes;Use of too many or undefined acronyms, which may make the Statement of Work confusing or difficult to read;Use of active voice when possible, to ensure that it is clear whom is responsible for the action; andUse of phrases or words that have multiple meanings, which can lead to confusion and ambiguity.*

What to include in the Statement of Work The DGS template (located in the RFP template) presents the Statement of Work in the following sections:IV-1 ObjectivesGeneralSpecificIV-2 Nature and Scope of the ProjectIV-3 RequirementsIV-4 - Tasks

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What to Include in the Statement of Work (cont)IV-5 Reports and Project ControlTask PlanStatus ReportProblem Identification ReportFinal ReportSummarize the expected reportDescribe data collectionSummarize findings/recommendationsInclude supporting documentationRecommend time-phased work plan to implement recommendations.IV-6 Contract Requirements*

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IV-1 - ObjectivesThe Objectives section should define, in simplest terms, the purpose of the project.The General Objectives should describe why the Issuing Office is seeking to contract the prescribed services and the expected gains from doing so.The Specific Objectives describe in more detail the high level goals of the project.*The Objectives section identifies the organizations overall outcome for the resulting contracted work, to provide a clear understanding and enforceable outcome for the work to be undertaken.

IV-2 Nature and Scope of the ProjectThe nature and scope of the project defines in detail thebackground of the project, as well as what specific workfalls within the range of the effort including: Any prior phase documents that form part of the specifications for the project;Any contractual arrangements the Department has in place with other contractors that the successful contractor will be required to work or interface with;*

IV-2 Nature and Scope of the Project (cont)Any information that helps the contractor determine the specific project size; this may include:The business model (including the descriptions of business processes);Other finalized business requirements;The number of people to be interviewed;Organizational units and their structures that will be involved; orAny other details that would assist the contractor in the development of their proposal;If the successful contractor will be precluded from participating in future work related to the project because it was recommended by this project;

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IV-2 Nature and Scope of the Project (cont)Any project related documents, if applicable, that will be made available to the contractor during the solicitation process; indicate from where and from whom said documents are available, and how they will be made available (e.g. on a sign-out basis, via email);If the contractor will be required to sign a non-disclosure agreement and, if applicable, include a copy of such agreement; and*

IV-2 Nature and Scope of the Project (cont)The individuals (by role), the committees and/or Department management that the Contractor will report to or work with on the project/provision of Services. Adherence to governmental policy.

*Specific outcomes of the project should be defined,including:The scope of the project should be carefully evaluated. Creating a project with a broad scope can increase project risk and make attaining objectives and successful criteria difficult.

IV-3 - Requirements*The specific requirements of the project that are to be met must be clearly defined. *Note that mandatory project/service requirements should be based on, and support, the objectives of the project. If contractors respond stating that they cannot meet a mandatory requirement, the response is treated as unacceptable. Requirements should be developed with regard to a business need, rather than as related to aspects or features of an envisioned solution or service.

IV-3 Requirements (cont)Federal, state, or other governing mandates to which the proposal must adhere;An overall project timeline or expected timeframe for completion; andCommonwealth standards to which the proposal must adhere. Describe each deliverable fully;Be quantifiable;Clearly identify when the deliverable must be met; andRelate acceptance of work/deliverables with the payment for a specific portion of work.*Requirements may include:Deliverables are key to measuring successful work requirements outcomes. The requirements should also:

IV-3 Requirements (cont)Out years will not be performed under a time and materials basis; andOut years deliverables can be negotiated during renewal years.*The requirements will not include time and materials pieces; all requirements must be defined in terms of project deliverables.Multiple year projects may include out years, defined as those outside the initial contract period. For multi-year projects:

IV-3 Requirements (cont)Requirements may also define key performance objectives (KPI) as part of a measurable objective. KPIs are financial and non-financial metrics used to quantify and reflect the performance of the contract. KPIs are frequently used to value activities within the contract. The KPIs differ depending on the nature of the Statement of Work and organizational strategy. They help to measure progress towards their organizational goals, especially toward difficult to quantify knowledge-based processes.

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IV-4 - TasksAnalysis & design of objectives and eventsPlanning the work according to the objectivesAssessing and controlling riskEstimating resourcesAllocation of resourcesOrganizing the workAcquiring human and material resources*Define those specific tasks which the contractor is to perform. Each task must be related to a higher level requirement and deliverable, as defined in section IV-3.This section should also describe a task plan, defining the method by which the contractor shall achieve identified tasks. Following are details specific to each task which should be included in the task plan:

IV-4 Tasks (cont)Assigning tasksDirecting activitiesControlling project executionTracking and reporting progressAnalyzing the results based on the facts achievedDefining the products of the projectForecasting future trends in the projectQuality ManagementIssues managementIssue solvingDefect preventionIdentifying, managing & controlling changesProject closure (and project debrief)Communicating to stakeholders*

IV-5 Reports and Project ControlThe schedule upon which reports are to be provided;To whom the report shall be addressed;Items of interest to be included; andThe method for identifying at risk project items, including thresholds to be analyzed.*The template defines several areas under Reports and Project Control, highlighting the importance of these elements in a successful project.Any reports that are expected or required should be defined. In describing the reports, define the following:

IV-5 Reports and Project Control (cont)Overall summarization of the project/services progress;Deliverables achieved;Deliverables remaining, progress, and expected delivery on each; andIssues and concerns affecting specific deliverables and the project schedule or any other aspect of the project/services.*If possible, provide a template to be used for status reports. This may include:

IV-5 Reports and Project Control (cont)Status reports periodic report to demonstrate status of individual tasks as relate to project deliverables and/or milestones;Problem Identification reports report identifying and describing specific problems encountered within the project;Deliverables report periodic report to demonstrate status of project deliverables;Final Project report single report at the closure of the project to present the outcome of the project;*Examples of some reports include:

IV-5 Reports and Project Control (cont)Spend Detail Report report detailing the actual items procured within a given time period, potentially including Purchase Order (PO) Number (open and shipped), Material Number, Item Description, U/M List Price (catalog only), Cost U/M, Quantity Ordered, Total Cost, Request Date, Commit Date, Ship Date, and PO Receipt Date;Payables Report report detailing how the Commonwealth is meeting its payable obligations to the supplier;On Time Performance (OTP)/Delivery Report report demonstrating deliverables/tasks and how they are accomplished relevant to agreed upon dates; andResponse Time Report report detailing how well a service level agreement/acknowledgement is met specific to on-time performance.*

IV-5 Reports and Project Control (cont)Another means to ensure that information is properly transmitted to the appropriate stakeholders is to develop a formal communication plan. This plan identifies all stakeholders and what information is to be shared with which stakeholder groups. Further, this plan identifies the schedule and media by which the aforementioned reports should be distributed to stakeholders.*

IV-6 Contract RequirementsThis portion of the DGS template should be left as is and includes standard contracting language.*

Definition of Change Control ProcessAn important element of developing a Statement of Work is planning for and anticipating change. It is common for requirements defined in the Statement of Work to need modification upon commencement of a contractor engagement. To protect COPAs interest and make this process as smooth as possible, the change control process that will be used for the engagement should be defined along with the statement of work.*

A change control process should be in place to ensure that project objectives are met by monitoring and measuring progress regularly to identify variances from the plan so that corrective action can be taken when necessary. This process will define the project/program managers responsibility, authority, and limitations to effect changes based upon the project baseline and the project plan. The process also defines the group of stakeholders, in some cases an executive board, who have the authority to approve or deny requested changes to the agreed upon Statement of Work.*Definition of Change Control Process

This section is not currently part of the published DGS RFP template, but may be appended as section IV-7 Definition of Change Control Process. An example of language that could be included in this section follows:The agency and the contractor will mutually define and document acceptance criteria to be reviewed by the executive change control board. These criteria will be based on functional requirements. Upon approval of these criteria by the change control board, the agency and the contractor will mutually agree to the revised criteria. Successfully meeting the acceptance criteria as documented with the Pennsylvania Statement of Work form and signed for approval by designated agency staff shall constitute acceptance. Milestones for acceptance will be incorporated into the project plan and managed by the assigned Contractor personnel.*Definition of Change Control Process

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Consequences of a Poor Statement of WorkAt the RFP Stage (pre-award):Excessive number of offeror questionsTime delay extensions to RFP Posting periodDiscourages many offerors from proposingReflects poorly on GovernmentDiminished trust/confidenceWeek foundation to establish meaningful evaluation and selection criteria, and to defend themReduced likelihood of selecting the best offeror.*

Consequences of a Poor Statement of WorkAt the Contract Stage (post-award):Operational Risks (i.e. project failure, delay, weak contract management)Financial Risks (cost escalations, amendments, unnecessary expenditures, poor value-for-money)Legal Risks (Contractor litigation, dispute resolution)Reputational Risks (negative media coverage, negative audits, diminished public confidence)*

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Sample Statement of WorkSelect the link below to view an example of a well written Statement of Work.http://www.dgsweb.state.pa.us/comod/Training/SampleStatementofWork.doc

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Thank You!*

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