How to develop an effective STATEMENT OF WORK

NMPPA Best Practices Training by Terry Davenport

Second Edition, 2005

You Will Learn

The components of an effective statement of work.

Why the components are necessary.

Preparation and writing tips for each component.

Purpose

You Will Learn

How to evaluate the quality of specifications and RFP’s obtained from a specification libraries or from other governmental entities.

Purpose

You Will Learn

How to write for clarity and completeness with examples.

The how and why of contractual protections.

How to improve the quality and timeliness of statement of work preparation.

Purpose

You Will Learn

How to improve collaboration between the buyer and the program personnel who will use the desired product or services.

Purpose

Purpose

  If I just knew what the buyers needed, I would give it to them!

  Not only what but why buyers need the information.

Purpose; Continued

Purpose

  Take the mystery and most of the misery out of your procurement processes.

  Make more efficient use of everyone’s time.

Purpose; Continued

PurposeWhy this class?

  Program staff own (are responsible for) the content of a public solicitation.

Purpose; Continued

  Buyers own (are responsible for) the procurement process.

PurposeWho writes the SOW?

The buyer completes the SOW development and adds the process.

Purpose; Continued

Program staff initiates the SOW development.

Let’s Get Started

Statement of Work (SOW) Resource Guide

SOW Worksheets

Let’s Get Started; Begin

The Statement of Work Is the Foundation for Every Public Solicitation.

It requires a complex interaction between the program personnel who are the users of the products and/or services and the buyer.

A properly developed statement of work represents 80% of a successful public solicitation. The remaining 20% is just mechanics.

TABLE OF CONTENTS General Considerations

Invitation For Bids

SOW Resource Guide; Overview

Request For Proposals

Getting Started

Contract Scope of Work

Contract Protections

SOW Resource Guide List of Questions for Developing the SOW

Example Contractual Provisions

SOW Resource Guide; Overview

Examples

Agency Worksheets

General Considerations

What are the components of the SOW?

SOW Resource Guide; General Considerations

Introduction/Background

Objectives/Purpose

Contract Protections

Scope of Solicitation

Bid or RFP Specifications

Contract Scope of Work

General ConsiderationsDefinitions

SOW Resource Guide; General Considerations

Acceptable Brands ListBy Type of SolicitationOn Server – Who Builds?

Bid Specification

Design Specification

RFP Specification

Statement of Work

Performance/ Functional Specification

Bidder/Offeror

Guiding Principles

Clarity – Plain Meaning Rule

Invite Competition

Industry Participation

Do’s and Don’ts – Let’s review them.

Guiding Principles

Getting Started

Chapter two begins at page 7.

Market ResearchSomeone has to do it! Who is the best choice? Why not you?

Getting Started; Market Research

Determine Commercial Availability

Potential Bidders/OfferorsDetermine Usual or Warranty Terms

Determine Terms and Conditions for DeliveryDetermine Typical Market Prices and DiscountSchedules

Determine Product Reliability

The Only Way to Gain Equal Footing with Bidders or Offerors

Introduction/Background Why the Work/Products Are Needed

Getting Started; Introduction/Background

Relation to Other/Future Projects Relation to Mission and/or Goals

Legal Basis of SOW

Key Terms Description of Work LocationOther Useful Information – What if you were preparing the response?

Purpose/Objectives

Getting Started; Purpose/Objectives

Be SMARTSpecific

Measurable

Realistic

Attainable

Time - limited

Examples

Getting Started; Purpose/Objective Examples

The objective of this work is to develop project management training materials and to train twenty-five designated District personnel by December 31, 2005.

The objective of this work is to undertake a feasibility study to determine technical and economical feasibility of _________ by December 31, 2005.

Scope of the Solicitation

Getting Started; Scope of Solicitation

Define the Boundaries- In or Out of Scope – Options such as maintenance, etc.

What I Intended Doesn’t Count

Potential Reward for Superior Performance

Optional renewals – Greater Value

Examples

Getting Started; Scope of Solicitation Examples

Upon expiration of the initial contract term, the contract may be renewed for three(3) addition one-year terms of portions thereof.

There shall be no contract extensions or renewals.

Invitation For Bids

Chapter three begins on page 11.

Bid Specifications

Invitation For Bids; Specifications

Performance vs DesignEstablish Minimum Quality

All Specifications are Mandatory

Don’t Forget Shipping, Installation and Delivery Requirements

Encourage Standard or Commercial Items

Acceptable Brands List

Writing Tips

Bid Specifications; Writing Tips

Shorten sentence length.

Use simple sentence construction.

Use active voice, task oriented statements, e.g.“Contractor Shall”

Be consistent.

Request For Proposals

Chapter four begins on page 14

RFP Specifications

Request For Proposals; RFP Specifications

Is the Specification Mandatory or Desirable?

What is the Offeror to Propose, Provide or Describe?

What Parameters Apply?

What Constitutes and Acceptable Response?

Example

Request For Proposals; RFP Specifications Example

Offerors must submit a statement of relevant experience. The

documentation submitted shouldthoroughly

describe how services have been supplied for similar contracts to the one being offered through this solicitation.

RFP Best Practice

RFP Specifications; Link To Contract Scope

Specifications May Reference Contract Scope of Work

Should Require a Project Plan Whenever Possible

Examples

RFP Specifications; Link To Contract Scope Examples

Offerors must provide in their proposals a written narrative

describing how they propose to render the services

described in the Contract Scope of Work.

Project Plan Specification in the Resource Guide.

Writing Tips

RFP Specifications; Writing Tips

Can I evaluate what I will receive?

How will I evaluate what I will receive?

Contract Scope of Work

Chapter five begins on page 17

Scope of WorkWhat is to be done?

Scope of Work; Overview/Checklist

What are the deliverables?

Who is going to do it?

When is it going to be done?

How will it be done?

How will you tell when it is done?

How much will it cost? (from contractors proposal)

Duties and Responsibilities

Define In-house Resources

Scope of Work; Duties and Responsibilities

Facilities and Equipment

Contract Administration –AuthorityAcceptancePayment Authorization

Time Frame

Always specify the number of calendar or work days

Scope of Work; Time Frame

Examples:Specific dateTen calendar days

after receiptWithin “X” calendar

days of the contract effective date.

Tasks

Structured by Milestone

Scope of Work; Tasks

Structured by Deliverable

Structured by Processe.g. All work required todevelop, manufacture and field test.

DeliverablesTangible Products: Hardware, Data, Written Report,Installation Completed

Scope of Work; Time Frame

Less Tangible: Meeting Facilitator, Custodial Services, or Training

Deliverables should be:SpecificClear submission instructionsClearly defined manner and

standards for acceptance

Best Practice - Example

Contractor agrees to submitfor approval a project plan within ten (10) calendar daysof contract execution.

Scope of Work; Examples

Contractor agrees to perform work in accordance with the approved project plan.

CHECK POINTCHECK POINT

Let’s review the checkpoint list in the Resource Guide together, page 20.

CONTRACT PROTECTIONSCONTRACT PROTECTIONS

Please turn to Appendix B of the Resource Guide, Example Contractual Provisions, and read them as each is described.

Contract Protections

Agreement Administration

Acceptance Prior To Payment

Acceptance Testing

Contract Protections

Change Orders

Copyright/Intellectual PropertyLicensing

Liquated Damages

Arbitration

Contract Protections

Patent, Copyright Trade Secret Indemnification

Performance Bond

Performance MeasuresDemoBenchmark TestingSystem Availability

Contract Protections

Quality Control/Quality Assurance (From Contractor)

Retainage

Performance-Based Payments

Contract Protections

Software Source Code Escrow

Warranties:Uniform Commercial CodeMerchantabilityFitness For a Particular

Purpose

Contract Protections

Appendix A

Appendix A; List of SOW Development Questions, Key Words and Phrases to be Avoided

A list of questions for developing the statement of work.

Appendix A begins on page 26

Appendix A1 – Key Work Words (Page 31)

Appendix A2 – Phrases to Be Avoided (Page 33)

Appendix CAppendix CTHE WORKSHEETSTHE WORKSHEETS

The worksheets begin on page 41.

Purpose

Worksheets, Purpose

Provide a communication bridge between the program personnel and the Purchasing Division.

Provide the foundation for the development of SOW’s

SOW Prep Instructions

Worksheets; Prep Instructions

Statement of intent

When and What to file

Invitation for bids format and standard Terms and Conditions

Template RFP and contract

The What

Worksheets; The What

Bid/RFP Meeting Coversheet/checklistBid Specification Worksheet

RFP Worksheet

Appendix D

Invitation For Bids; Examples

Lets review the examplesfound in the Resource Guide beginning on page 45.

Examples

Invitation For Bids; Examples

Overhaul of Four Pennsylvania Process Gas Compressors – Orange County Sanitation District

Examples

Invitation For Bids; Examples

Pratt & Whitney Turbo Prop Engine With Test Stand

This example is found on page 55

Examples

Invitation For Bids; Examples

Example Design Specification – Lift Truck

This example is found on page 58

Example RFP Paragraphs

RFP Paragraphs; Examples

Purpose and objective in a single paragraph (Page 60)

Background InformationPlans Past Performance

Risk Management/Value Add

Scope of Procurement

Presentation and DemonstrationFinancial Stability/License

Corporate/Personnel Experience

Example Coversheet

Coversheet; Example Coversheet

Example Statement of Work Coversheet –Meeting Checklist

The example coversheet is found on page 64

You Will Learn

The components of an effective statement of work.Why the components are necessary.

Preparation and writing tips for each component.

Purpose

You Will Learn

How to write for clarity and completeness with examples.

The how and why of contractual protections.

How to improve the quality and timeliness of statement of work preparation.

Purpose

You Will Learn

How to improve collaboration between the buyer and the program personnel who will use the desired product or services.

Purpose

Useful Training CD

Public Sector Procurement Demystified by Jim O’Neill. (90 minutes)

http://www.rfpmentor.com/demystified.html

ONLY $195

THANK YOUTHANK YOU

Comments and/or recommendations forimprovement of the presentation and theResource Guide are welcome as well asadditional example specifications fromyour jurisdiction. Please email yourcomments and examples to me at thefollowing address.

tdavenport27@comcast.net

This PowerPoint may be reproduced in

whole or in part for NMPPA training events.

© Public Procurement Services, 2005

27 Calle Cascabela

Santa Fe, New Mexico 87508