Procurement Statement of Work (SOW)
A procurement statement of work (SOW) is a narrative description of the products, services, or results to be supplied by a seller under a contract.
Explanation
The procurement SOW is developed from the project scope baseline and describes only the portion of the project scope that will be performed by the seller. It should be written clearly and completely so that prospective sellers can determine whether they are capable of providing the items and can price their response accurately.
A well-written SOW includes specifications, quantity, quality levels, performance requirements, the period of performance, work location, delivery schedule, and any applicable standards. The level of detail depends on the nature of the item being procured and the contract type; fixed-price contracts typically require more detailed SOWs than cost-reimbursable contracts.
The SOW may be revised and refined as it moves through the procurement process, particularly after bidder conferences where seller questions can reveal ambiguities. Each procurement item should have its own SOW, and the SOW becomes part of the resulting contract.
Key Points
- •Derived from the project scope baseline
- •Describes only the work the seller will perform
- •Level of detail should match the contract type
- •Becomes part of the legally binding contract
Exam Tip
The procurement SOW is developed from the project scope baseline, not from the project charter. A more detailed SOW is needed for fixed-price contracts where the seller bears cost risk.
Frequently Asked Questions
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Plan Procurement Management is the process of documenting project procurement decisions, specifying the approach, and identifying potential sellers.
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Source selection criteria are the standards and factors used to evaluate and rank seller proposals during the procurement process.
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Procurement Management
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