Reference no: EM133528919

Contracts and Procurement Assignment

Writing a Statement of Work (SOW)

Introduction

The full life-cycle of a procurement of a good or service is typically comprised of five stages:

Stage 1. An attempt is made to identify possible suppliers of goods and services. This is often done by means of a request for proposal (RFP) or an invitation for bid (IFB). An RFP is a written document that defines the work or products desired and is distributed among possible bidders. At the heart of the RFP is the statement of work (SOW), a narrative document describing the goods and services that will be contracted. Potential contractors write proposals describing how they will supply the desired goods and services (see below). Once the proposals have been submitted, the buyer and potential supplier may negotiate terms.

An IFB is also solicitation inviting bids to supply defined goods or services.

Unlike the RFP, sealed bids are tendered and opened publicly at one time. Typically, awards are made to the lowest bidder. There are no negotiations between buyer and supplier.

Stage 2. After receiving the RFP (or IFB), potential suppliers must determine whether they want to tender a bid in response to the RFP. If they decide to proceed with a bid, they describe the work they will undertake and goods they will supply in a proposal. The technical description of what they will provide is contained in a SOW. Proposals also contain information on who will carry out the effort, what the organizational capabilities are (including past experience), how much time it will take to deliver the services and goods, and how much it will cost to engage in the proposed effort.

Stage 3. The buyer will review submitted proposals and then decide which proposer should be awarded the contract.

Stage 4. Negotiations on the terms and conditions of the contract can be negotiated. Ultimately, the buyer issues a contract that describes what work will be done, what deliverables will be supplied, and time frames for work and deliverables. Beyond this, the contract can deal with a broad assortment of issues, including payment terms, penalties for non-performance, and descriptions of data rights.Stage 5. The contractor delivers the goods and services to the buyer and arrangements are made to close-out the contract.

Assignment

1. The Statement of Work

You will play the role of a buyer putting together an RFP describing work that you would like a contractor to carry out. The job that will be carried out is to relocate your company's headquarters from Site A to Site B. In this assignment, you should create a SOW that will lie at the heart of the RFP and that addresses the following facts:
• Current facilities (Site A) have 1,000 square meters of office space. The new facilities (Site B), have 1,600 square meters of space. Site B is located four kilometers from Site A.
• The current facilities contain 15 desks (with associated chairs) that need to be moved to the new site.
• The current facilities contains three sofas, 10 arm chairs, and three coffee tables that need to be moved to the new site.
• The current facilities contain small items that will be packed in an estimated 120-160 cardboard boxes.
• The current facilities have 15 computers (with monitors) that need to be moved to the new site.
• The current facilities have 34 framed pictures that have to be packed and moved to the new site.

Write a simple SOW that will be included in the RFP.

2. Estimate of Costs

Create an estimate of what you think it will cost to carry out the work described in the SOW for the office relocation project. In your estimate, you should include estimates of labor time and equipment rental (e.g., renting moving vans).