Procurement Statement of Work

April 13, 2010
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Introduction

The statement of work is a document that defines the work to be undertaken by the seller to ensure the buyer can complete the procurement action. This being the very basis of the specific procurement action, it is essential that the document can define what is needed completely. This obviously has to be developed from the scope baseline document and use the relevant parts to specific item, product or services to be procured. The details provided needs to be sufficient so that the seller can accurately determine if he can supply the item. He should be able to make an accurate estimate of the effort involved. He will have to base his pricing on these estimates.

Considerations related to SOW Development

The SOW document is the basis of the complete procurement contract. It starts with introductory information about the buyer organization and defines the purpose, the scope, specific task requirements, etc. In case of a service contract it should specify the types of services required and the duration for it. In case of product or a result to be obtained, the milestones of deliveries will need to be included. Quality assurance and service needs, if any, after procurement will need to be specified. Some or all the following considerations may apply when creating a SOW and the following could be used as a checklist to ensure completeness of such a document.

To start with statements about the purpose of the procurement action, the related objectives/goals should be specified very clearly. This provides the context to the complete document and can help resolve many ambiguities in the document given this context or a frame of reference to the complete procurement activity.

Wherever appropriate the SOW can and should specify the nature and the level of skills of personnel to be deployed in creating/developing the product/services/results required by the SOW.

It should also be very clear if the buyer organization is responsible for some actions and similarly what the seller is responsible for. These requirements should specify what significant material is to be supplied and similarly what significant material items are to be provided by the buyer. The one point contacts on both sides also should be identified and documented.

A estimated time schedule needs to be provided by the contractor, this must have been asked in the SOW. The completion/acceptance criteria of specific deliverable should be clearly specified.

SOW Preparation Guidelines

Depending on the complexity of the project and the specific procurement arising out of it the SOW document can be very complex. SOW are one form of the requirements document, one of the more detailed and accurate form. These are employed where a simpler needs requirements documents will not suffice. To be successful in the procurement action this SOW needs to be sufficiently detailed so that a contractor is able to produce the item to the acceptable quality levels.

These documents need to be be read and interpreted by a range of personnel from both the buyer and seller’s organizations that have diverse backgrounds. It should be possible to derive clear meaning of the intent of procurement by people as diverse as lawyers, procurement personnel, contract specialists and the management of course. The clarity of the needs should be sufficient for the seller to accurately estimate prices.

Guidelines need to be included for evaluation criteria, technical proposal instructions and independent cost estimates. The clarity in the document should also ensure that the needs for change orders are minimized. The change orders will affect the price and scheduled completion. Performance of the procurement project will need to be assessed by both seller and buyer to ensure that seller meets the requirements. The criteria to be used and performance numbers to be arrived at should be similar so that disputes and claims are minimized.

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One Response to Procurement Statement of Work

  1. chibuoke virginus ejike on June 3, 2012 at 7:48 am

    am highly indepted to this organization, website for the uplitment of their relevanrt fact and accuracy basis guardline,product ,services .Details in developed from scope, baseline documentation and ability to schedule the busness status, that associated in feild of procurement state of works.

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