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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.
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
