Slide 1 Welcome to Advanced Statement of Work Writing Please… Sign the class roster, fill out a tent card, pick up a handout, and help yourself to snacks.

Slide 1

Welcome to Advanced

Statement of Work Writing

Please…

Sign the class roster, fill out a tent card, pick up a handout, and help yourself to snacks on the back table

Find an available computer station and adjust the chair and computer monitor to your comfort level

Silence your cell phone, blackberry, pager, etc.

Slide 2

Advanced Statement of Work Writing

Developed and presented by

Tara Anderson and Mary Wandell

ODOT Procurement Office

June 21, 2011

Slide 3

Training Outline• Training Overview

• Review of Basics

• Getting Started

• Project Description and Overview

• Identifying Tasks and Deliverables

• Developing Tasks and Deliverables

• Schedule

• Assessing and Managing Risk

Slide 4

Training Approach

• Cover concepts

• Writing exercise – draft from scratch

• Share examples of drafts

– Identify strengths and weaknesses

– Discuss improvements for draft

Slide 5

Activity Expectations

• Let’s all learn from each other

• We do not expect you to draft perfect examples in class

• We're counting on problems with the drafts

– provides opportunities to practice review skills to reinforce strengths, identify weaknesses, discuss risks, and propose suggestions for improving the draft

Slide 6

Discussion Expectations

• Focus on the draft, not the drafter

• Keep your comments objective

• Ask questions

• Share suggestions

• Let’s have fun!!

Slide 7

Review of Basics

Slide 8

Covered in the Basics Class

• Scope of Work vs. Statement of Work (SOW)

• When SOW is used

• Audience for SOW

• Legal sufficiency requirements

• What is a well-written SOW

• SOW review and approval process

Slide 9

Covered in the Basics Class

• SOW Writing Style– Clear Language– Clear Authority– Well Organized

• It’s ODOT’s contract!

• Components of SOW– Tasks – Deliverables– Schedule

Slide 10

Covered in the Basics Class

• SOW Templates

• Risk– Assessing Risk– Legal Requirement vs. Business Decision– Independent Contractor

Slide 11

Back to the Basics

How much do you remember from the basics Statement of Work class?

Pop Quiz!

Slide 12

Getting Started

This WayThis Way That Way

That Way

SOWSOW

Slide 13

What is “Done”?

• Begin with the end in mind

– What need is being addressed?

– What’s the desired final outcome?

– Who will it serve?

• Public?

• Legislation?

• ODOT “__________” section?

• ODOT Director?

Slide 14

“Done” continued

• “Done” is the final tangible product ODOT will have at the end of the contract

– What ODOT is ultimately paying for

– Describe what “Done” must: • look like • perform like• contain

– Include standards that “Done” must meet

Slide 15

SOW Options

What SOW options best meets your project needs?

– Performance-based; focuses on outcome• Deliverables-based• Recurring Services • Service Level Agreement (SLA)

– Phased approach

– Hybrid

Slide 16

Deliverables-based SOW

Used for:• Projects with easy to define “Done”• Can identify majority of steps to get to “Done”

Advantages:• Good for developing and maintaining independent

contractor business relationship

Disadvantages:• Requires fair amount of expertise about services

and deliverables to be completed

Slide 17

Recurring Services SOW

Used for: • Services that are repeated each month. Examples

are Program Manager and system maintenance

Advantages: • Easy to structure and administer

Disadvantages: • This method is harder to mitigate the independent

contractor vs. employee concerns

Slide 18

Service Level Agreement (SLA)

Used for:• Services required to maintain a level of

functionality

Advantages:• Not required to define specific tasks or

deliverables• Emphasis is on functionality requirements

Disadvantages:• Only appropriate for maintaining existing systems

Slide 19

Phased ApproachUsed for:• Deliverables-based SOW, especially for projects

of long duration and complex projects with unknown steps or undefined approach

Advantages:• Develop SOW for known phase of work – add

SOW for new phases as project progresses

Disadvantages:• Requires time and effort for SOW development

and approval for each new phase

Slide 20

Things to Consider• What major steps or services are needed to get

to “Done”? – Major milestones or phases

• How will progress be gauged and regulated? – Deliverables or service level requirements

• Are there unknown steps or outcomes to be managed? – Go/No Go points, project phases, anticipated

amendments

• What’s the standard approach to this type of project?

Slide 21

Writing Activity #1Draft a one sentence description of what “Done” will look like for your contract

List 2-4 major steps to be completed to get to “Done”

What SOW options would best meet the project needs?

Slide 22

Project Description and Overview

Slide 23

Project Description and Overview

• Info to include:

– Scope of work for contract

– Background information

– Contract purpose and objectives

– Anticipated amendments to contract

Slide 24

Things to Consider

• Scope of Work

– Type of services or work

– Duration of project or contract

– Potential cost (pros and cons of listing in RFP)

– Flexibility for additional work or projects

– Who’s the customer? Include potential for other users?

Slide 25

Things to Consider

• Background Information

– Broad information which could include the State of Oregon and ODOT

– Background on the unit or who the contract is going to serve

– Background on the project; how did we get to the point of needing a contract?

– What does a potential proposer need to know to understand the context of the project?

Slide 26

Things to Consider

• Objectives for the Contract

– How does the contract fit into the overall project?

– Is this work tied to other projects? If so, how?

– Incorporate definition of “done”

– Do you want to include a structure for unknown future work?

Slide 27

Things to Consider

• Anticipated Amendments

– What possibly could change in the contract?

• Add or reduce work; current project and other projects

• Add or reduce time and money

• Add skill-sets (key people)

• Add phases

• Change in project approach

• Reassessment

Slide 28

Things to Consider for IT Contracts

• Anticipated Amendments for Mixed Contracts

– Additional modules/software?

– Incorporate entire catalog of products?

– Additional licenses?

– SaaS vs. Owned, or both?

Slide 29

Writing Activity #2

Draft a “Project Description and Overview of Services” for your SOW

Include:– Background information– Contract purpose and overall objectives,

including scope of work– List of anticipated amendments

Slide 30

Identifying Tasks and Deliverables

Slide 31

• Have we contracted for a similar project?

– Modify existing Statement of Work

• To address lessons learned (problems and successes)

• To fit your project

Methods to Identify Tasks

Slide 32

• Brainstorming session with key people

• Capture the information

– Mind map to identify tasks and deliverables

– An outline of tasks and deliverables

Methods to Identify Tasks

Slide 33

Things to Consider

• Outline of tasks and deliverables should mirror size and complexity of project

– Larger and more complex projects;• SOW with initial tasks, then add tasks or

phases of work later by amendment• Larger dollar value, higher risk to ODOT, multiple

locations• Multiple agency participation

– Smaller and less complex projects; • one SOW with all tasks and deliverables

Slide 34

Things to Consider

• What must be accomplished to get to “Done”? – Tasks, activities, deliverables

• How will progress be gauged? – Review and acceptance of deliverables

• How will progress be regulated?– Organization of tasks, deliverable due dates

• How will unknown outcomes be managed?– Decision points at milestones or phases

Slide 35

Things to Consider

• What’s the standard approach to this type of project?

• If IT, what methodology will ODOT require or recommend?– Waterfall– Rapid / Spiral– Agile– other standardized process

Slide 36

Things to Consider

• Organization of tasks– Flow of the tasks in the SOW

• Linear and simultaneous tasks

– Tasks and subtasks– Task number and naming convention

• How important is flexibility for tasks or schedule?

Slide 37

• Break up work into meaningful chunks for ODOT and consultant

– Monthly income for consultant

– Management and scheduling of resources

– Fit timeframes needed by ODOT or stakeholders

– Review and approval is manageable

Things to Consider

Slide 38

Things to Consider

• Identify deliverables as outcomes for tasks– What are the objectives of the task?

– What deliverables would best indicate the objectives were met?

• Define deliverables that are tangible and measurable

• Which deliverables do you want in draft form prior to final?

Slide 39

Things to Consider

• For IT mixed contracts

– How will purchase of goods be integrated? (software, hardware, maintenance & support)

• Stakeholder requirements– Timing of purchase and services– Stakeholder buy-in prior to contract execution

Slide 40

Writing Activity #3

Develop and organize an outline of tasks and deliverables for your SOW

Include:– Names of phases, if any– Names of tasks– Potential deliverables for each task

Establish a task numbering convention for the SOW outline

Slide 41

Developing Tasks and Deliverables

Slide 42

Apply Writing Style Conventions

• Clear language

– Avoid ambiguous language

– Consistent use of defined terms

– Define abbreviations and acronyms

Slide 43

Apply Writing Style Conventions

• Clear authority

– Write in active voice

– Assign responsibility

– It’s ODOT’s contract

Slide 44

Apply Writing Style Conventions

• Well organized

– Shorten overlong sentences

– Use numbered or bulleted lists

– Arrange in logical order

– Use headings

– Proper grammar and punctuation

Slide 45

Development of Tasks

• Task name (and number)

• Purpose, objective and scope for task

• Task activities and requirements – On-site requirements– Modified acceptance criteria other than

standard in contract T&C

Slide 46

Development of Tasks

• Clearly assign responsibility for tasks and activities– ODOT or Consultant– Optional: Identify key person classification

• Estimated level of effort to complete task– Level of expertise needed; job classification– Estimated number of hours to complete

Slide 47

Development of Deliverables

• Deliverable name (and number)

• Deliverable requirements

– Provide clear description of requirements and expectations

– Reference specific written industry or ODOT standards for deliverable requirements

– Provide examples of what we expect

Slide 48

Development of Deliverables

• What format for deliverables?

– Publication ready vs. internal use documents

– Size expectations; document & font size

– Hard copy; number of copies

– Electronic; software compatibility requirements

Slide 49

Writing Activity #4Choose one or two tasks from your SOW outline.

Draft task and deliverable language for your SOW using writing style conventions.

Include:– Description of activities that must occur for each task– Description of deliverables– Requirements for acceptance of deliverables

Slide 50

Schedule

Slide 51

Review of Basics

• Types of deliverable due dates– Target/Estimated Dates– Mandatory Due Dates

• Location of schedule within SOW– Include with each task and deliverable– Table at the end of SOW– Embedded Gantt Chart for IT contracts

Slide 52

Things to Consider

Impacts of the following on schedule:

• Funding

• Legislative mandates

• Business customer need

• If fits into bigger project, what are the requirements

• Weather constraints

• Staff and stakeholder resources

Slide 53

Methods to Building the Schedule

• Start with end date and work backwards– Restricted by date all work must be done– All tasks and deliverables are known

• Start at the beginning and work forwards – No end date constraints– Phased work with unknown next steps

Slide 54

How Schedule Impacts Contract

• More aggressive the schedule…– Higher the cost of services– Amendments are more likely– Higher the demand for availability of key

resources

• Realistic schedule positively impacts business relationships– IT to business customer– ODOT to contractor– Other agencies to ODOT

Slide 55

Writing Activity #5Review your outline of tasks and deliverables

(Activity #3) and answer the following:

1. What types of due dates would best fit your contracting needs?

2. Where will deliverable due dates be located within your SOW?

3. What schedule constraints does the project have?

4. What method would you use to build the schedule?

Slide 56

Assessing and Managing Risk

Slide 57

Assessing Risk

• Complete risk assessment of initial draft

– Identify risks to Agency

• Is SOW clear enough to be understood by all audiences

– Identify risks to Contractor

• Assess risk of subsequent changes made to SOW

Slide 58Answers

What contributes to risk in a Statement of Work

Risk to ODOT

Risk to Consultant

1. Tasks and deliverables not clearly defined with appropriate requirements and standards

2. Not clearly assigning responsibility

3. Setting unreasonable deliverable due dates

4. Setting unreasonable expectations for review and acceptance of deliverables

5. Not identifying format of the deliverable

6. Not being cognizant of how work will be managed (linear tasks vs. concurrent tasks)

7. Not including transfer of knowledge as a requirement

8. Not using clear and concise writing style (ambiguous terms, defining acronyms, etc.)

9. Not indicating level of collaboration required to complete the work

10. Not clearly defining “done” for the contract

11. Not including appropriate flexibility in scope of work to meet ODOT needs

12. Being too prescriptive in how work is to be completed

13. Too many factors indicating employer-employee relationship

Slide 59

Managing Risk

• Avoid –

• Transfer –

• Modify –

• Accept –

Slide 60

Managing Risk

• Avoid – don’t have consultant do the work

• Transfer –

• Modify –

• Accept –

Slide 61

Managing Risk

• Avoid – don’t have consultant do the work

• Transfer – assign responsibility to consultant

• Modify –

• Accept –

Slide 62

Managing Risk

• Avoid – don’t have consultant do the work

• Transfer – assign responsibility to consultant

• Modify – change approach or modify SOW to reduce risk

• Accept –

Slide 63

Managing Risk

• Avoid – don’t have consultant do the work

• Transfer – assign responsibility to consultant

• Modify – change approach or modify SOW to reduce risk

• Accept – no change, take the risk

Slide 64

Activity #6Identify any risks in the task.

Suggest how risks might be managed:– What risks should be avoided?– What risks should ODOT transfer to consultant? – What risks can be reduced by modifying SOW?– What risks should ODOT accept?– Who has the authority to accept risk?

Be prepared to share your findings with the group

Slide 65

Questions?

Slide 66

Words of encouragement…

• The more you draft, the better you’ll get

• Even well-written drafts invoke questions or edits from procurement or DOJ

• No document is perfect

• Well-written drafts result in faster review and approval

Slide 67

Thank you for your Thank you for your participation!!!!participation!!!!

Please pick up your training certificate.

Training evaluations will be emailed to you.

~ Have a great afternoon ~~ Have a great afternoon ~