Proposal Development

Statement of Work (SOW)

The Statement of Work (SOW) is a document that enables the offeror to clearly understand the government’s needs for the work to be done in developing or producing the goods or services to be delivered by a contractor.  It defines (either directly or by reference to other documents) all work (non-specification) performance requirements for a contractor. It also facilitates the preparation of a proposal and aids the Government in the conduct of the source selection and contract administration after award.  

DoD MIL-HDBK-245 Statement of Work Definition: The SOW defines (either directly or by reference to other documents) all (non-specification) performance requirements for contractor effort.  The SOW should specify in clear, understandable terms the work to be done in developing the goods or services to be provided by a contractor. 

Whether the SOW is written by the government or the contractor (or some combination of both), it is a key element of a contract. After contract award, requirements of the SOW (and associated specifications) constitute the standard and discipline for the contractor’s effort. It comprises the baseline against which progress and subsequent contractual changes are measured. Both the Government and the contractor look to the SOW as a key document defining the responsibilities of both parties.

Handbook: MIL-HDBK-245D DoD “Handbook for Preparation of Statement of Work”

Defense Acquisition (2) Types of Statement of Works (SOW)

  • Statement of Work (SOW): For system procurement and Research and Development (R&D) (MIL-HDBK-245)
  • Performance Work Statement (PWS): For the acquisition of professional services. (AFI 63-124)  

What is a Performance Work Statement 

A Performance Work Statement (PWS) is an SOW for performance-based acquisitions that clearly describes the performance objectives and standards that are expected of the contractor.

PWS Main Guidance: Air Force Instruction (AFI) 63-124 Performance-Based Service Acquisitions

Statement of Work in the Request for Proposal (RFP)

The SOW is shown in its entirety in Request for Proposal (RFP) Section C of the uniform contract format, or incorporated by reference then listed in and attached to Section J.

Preparation of the Statement of Work (SOW)

The preparation of an effective SOW requires both an understanding of the goods or services that are needed to satisfy a particular requirement and an ability to define what is required in specific, performance-based, quantitative terms. The SOW should reference qualitative and quantitative design and performance requirements contained in specifications developed according to MIL-STD-961. [1]

Checklist: Statement of Work (SOW) Checklist

 A well-written SOW has the following attributes: [1]

  • Specifies requirements clearly to permit the government and offeror’s to estimate the probable cost and the offeror to determine the levels of expertise, manpower, and other resources needed to accomplish the task.
  • States the specific duties of the contractor in such a way that the contractor knows what is required and can complete all tasks to the satisfaction of the contract administration office.
  • Written so specifically that there is no question of whether the contractor is obligated to perform specific tasks.
  • References only the absolute minimum applicable specifications and standards needed. Selectively invokes documents only to the extent required to satisfy the existing requirements.
  • Separates general information from the direction so that background information and suggested procedures are clearly distinguishable from contractor responsibilities.
  • Avoids directing how tasks are to be performed and states only what results are required.

8 Steps to Developing the Statement of Work Content

There are as many parts in a Statement of Work that needs to be developed but first focus on defining the key topics. Once you have the key topics defined the others will be a lot easier to develop. 

  • Step 1: Write the Introduction: Explain what work needs to be accomplished and who is involved. This forms the baseline for the entire project and helps potential offers understand and set their prices and capabilities. 
  • Step 2: Determine the Project Purpose: Answer the question of why are we doing this. To do this establish a purpose statement and answer the basic questions of what are the goals, deliverables, and objectives. 
  • Step 3: Develop the Scope of Work: Determine the process that will be used to complete the work including what hardware and software will be necessary. The scope should include time, results, and general steps for accomplishment. Keep the scope broad enough to give you the flexibility to make future revisions via the Changes clause.
  • Step 4: Determine Work Location: Choose all locations that project members might and will have to perform all tasks in the SOW. 
  • Step 5: Develop the Tasks: Break the project down into more detailed tasks to include all the main deliverables, milestones, phases, and key tasks (Be specific) A Work Breakdown Structure (WBS) is a good tool to use during this step.
  • Step 6: Determine the Milestones: Develop the project’s proposed start and finish date and all the major milestones in between. Use when products and tasks are scheduled to be completed.
  • Step 7: Determine the Deliverables: List each deliverable, show when it is due, and describe them in detail. Provide as much detail in this step.
  • Step 8: Develop the Schedule: Start with all the steps/tasks the project needs to accomplish then create a realistic schedule around that.  The steps should include each major deliverable and when and the order it needs to get done. Then add all the management-related milestones to include kickoff,  reviews, development, implementation, testing, and project closeout/acceptance. 

Create the Statement of Work

To create the actual Statement of Work it is best to use an established template from your organization or from a legal entity. Since you already have the task and the content defined it should be an easy step to plug in your content. A template also makes sure you are addressing all legal questions and you didn’t is any content. 

Template: Performance Work Statement

Template: Generic Performance Work Statement Template

Notional Statement of Work Format:

  1. Scope: This section includes a brief statement of what the SOW should cover. The scope paragraph defines the breadth and limitations of the work to be done.
    1. Period of Performance
    2. Assumptions
    3. Deliverable
    4. Milestones
    5. Governance ( Approval Authority)
  2. Applicable Documents: Military handbooks, government instructions, service regulations, technical orders, and policy letters, as a type, are not written in language suitable for contract application.
  3. Requirements: Specific work tasks developed to satisfy program needs, are essentially the contractor work requirements.
    1. General Requirements
    2. Technical Objectives and Goals
    3. Specific Requirements

Using a Work Breakdown Structure to Develop the SOW

A Work Breakdown Structure (WBS) should be used in developing the SOW. A WBS provides the framework for a disciplined approach of structuring and defining the total project or program. When preparing the SOW a complete application of a WBS may not be necessary for all programs, however, the underlying philosophy and structured approach can and should be applied. The Contract Line Item Number (CLIN) and the SOW should be constructed to correlate with the WBS. The use of a WBS during SOW development facilitates a logical arrangement of the SOW elements and provides a convenient checklist to trace all necessary elements of the program and ensure that they are addressed in the SOW. [1]

Statement of Work Data Requirements 

Each SOW will most likely have data requirements that are needed by the government and contractor. Below is a list of key data topics that you should consider:

  • Deliverable data is governed by Data Item Descriptions (DIDs) in the Contract Data Requirements List (CDRL), which establish the format and content requirements
  • SOW taskings must not include the description and delivery requirements for data.
  • DoD 5010.12-M “Procedures for Acquisition and Management of Technical Data” governs contracting for data.
  • The SOW tasks the contractor to perform effort; deliverable data is the by-product.
  • Each deliverable data item must link to tasking in the SOW which generates the effort which results in the delivery of data. 
  • The SOW tasking paragraph resulting in data delivery must cite either the CDRL Sequence No. or the applicable DID, or both, at the end of the tasking paragraph.

Statement of Work Funding

The SOWs should be consistent with the proposed appropriation to be charged from a Purpose-Time-Amount standpoint. Specifically, the funds being cited on the SOW should be used for the proper purpose, within the legal timeframes established by Congress, and within the amounts authorized, appropriated, and allocated to the program.

Statement of Work (SOW) vs. Statement of Objective (SOO)
The SOO is a Government prepared document that provides the basic, high-level objectives of the acquisition. It is provided in the solicitation in lieu of a government written Performance Work Statement. In this approach, the contractors’ proposals contain their statements of work and performance metrics and measures (which are based on their proposed solutions).  The use of an SOO opens the acquisition up to a wider range of potential solutions.

Conclusion

The statement of Work is one of the most important documents on a defense acquisition program. It is the document that enables the offeror to clearly understand the government’s needs for the work to be done in developing or producing the goods or services to be delivered by a contractor. Without an SOW there might be confusion on what is required from both the contractor and the Government. Take your time and develop the best SOW you can, it will save you a lot of time in the future if anything was to go wrong. 

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Updated: 4/27/20201

Rank: G26

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