Writing an Effective Statement of Work (SOW)

Skip Bartek, Aiko Neill and Shannon KelleyContract Managers

Enterprise Contract Management, Technology Sourcing Office

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Agenda

SOW Standard Requirements

SOWs for Managed Services for Telecommunications

SOWs for Deliverables Based IT Services (DBITS)

SOWs for Cloud Services

Questions and Answers

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SOW Standard Requirements

Scope of Project

Roles and Responsibilities

Deliverables

Schedule

Service Levels for Services

Acceptance Criteria

Pricing and Payment Schedules/Milestones

Assumptions

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SOWs for Managed Services for Telecommunications

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Payment Schedule Examples

Based on Schedule Milestones (Telecom Router Install Project)• Milestone 1 – Receive, configure, and test router

• Milestone 2 – Install router into network, test and turn up

• Milestone 3 – Train staff on router configuration, maintenance, and service

Payment Breakdown• Milestone 1 – 10% of total price

• Milestone 2 – 25% of total price

• Milestone 3 – 65%

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Payment Schedule Examples, continued

Deliverables Based Payments (Network Assessment and Recommendations Project)• Deliverable 1 – Project Plan

• Deliverable 2 – Assessment Reports

• Deliverable 3 – Final Recommendation Report

NOTE: Acceptance Criteria is critical for these types of payment deliverables

Payment Breakdown• Deliverable 1 – 25%, or lower of total price

• Deliverable 2 – 25% or lower, not to exceed 50% of total price

• Deliverable 3 – 50% or higher depending on first two deliverables

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SOWs for Deliverables Based IT Services (DBITS)

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Features of DBITS Contracts

Benefits

The value of any one SOW may not exceed $10 million including all extensions, renewals and change orders

DBITS Technology Categories• To view definitions of DBITS Technology Categories visit:

http://www.dir.texas.gov/ict/contracts/dbits/Pages/dbitsservices.aspx (Click on the title of each category to view a list of vendors contracted for that service)

DBITS SOW Template – Appendix C

DBITS SOW Considerations

Roles and Responsibilities

Deliverables Submission/Format

Reports and Meetings

Period of Performance

Customer Furnished Equipment and Workspace

Additional Terms and Conditions

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Deliverables – Defining and Describing

Phase 1 – Project Initiation Project plan (including GANTT chart, all steps/tasks, review and revision timeframes)

One (1) project kick-off meeting on customer site Monthly project reports

Phase 2 – Business Process Analysis Business requirements document Technology assessment report

Phase 3 – Design and Development System Design Document (SDD) for the data flow

PDF entry forms for data input Data flow implementation guide Test plan

Phase 4 – Migration and Data Flow Production setup plan and schedule Migration task list for installs Production system installed, tested and

validated

Phase 5 – Conduct End-User Training End user training documents Training plan

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SOWs for Cloud Services

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SOWs for Cloud Services Contracts

Overview of Cloud Contracts• Cloud Categories

• Current Contracts

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SOWs for Cloud Services Contracts

SOW Templates• Cloud Assessment Services

• Cloud Services IaaS PaaS Cloud Broker

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Cloud Services Issues/Considerations

Service Level Agreements (SLAs)• Many DIR Contracts include approved vendor service

agreements with agreed upon minimum SLAs

• Some providers are flexible / higher cost

• Some providers are less flexible / lower cost Determine acceptable level of downtime, match that to the

appropriate service provider

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Cloud Services Issues/Considerations

Acceptance Criteria• Diverse depending on Cloud Service

• For some Cloud Services, provisioning = acceptance/billing commencement

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Questions?

Skip Bartek, TEX-AN Contract Manager

skip.bartek@dir.texas.gov (512) 936-9876

Aiko Neill, DBITS Contract Manager

aiko.neill@dir.texas.gov (512) 475-0515

Shannon Kelley, Cloud Services Contract Manager

shannon.kelley@dir.texas.gov (512) 463-7666

www2.dir.state.tx.us