Statement of Work (SoW)

A Statement of Work (SoW, also written SOW) is the document that describes the work a supplier must perform under a contract. It normally sets out the scope, tasks, deliverables, schedule, responsibilities, service levels, standards and other requirements needed to describe and control that work.

The NATO Communications and Information Agency (NCIA) defines it as a document forming part of the contract. It covers the specifications, scope, tasks, activities, deliverables, timeline, service levels, governance and methodology for the services the contractor provides. In Canadian federal procurement, the SoW is a core part of the solicitation package that bidders must read closely before they offer.

What a Statement of Work contains

NATO guidance says a SOW for services should define the required scope of work and the respective responsibilities of the supplier and stakeholders. NATO describes the technical SOW as the core contract document holding the exact requirements that the selected commercial source is legally obligated to satisfy. It may identify functions, tasks, duties, deliverables, personnel qualifications, period of performance, materials and security requirements. Details are in the NATO bi-strategic command procurement guidance and the NCIA contract general terms and conditions.

NATO procurement also uses the SOW as the technical basis for a solicitation and for evaluating whether offers satisfy the stated requirements, as set out in the NATO procurement manual. NCIA states in its procurement process that it writes the SOW for a competition from its requirements and includes it in the solicitation.

How PSPC and CanadaBuys treat the SoW

Public Services and Procurement Canada (PSPC) presents the SoW as part of the solicitation documents. Its bidding guidance describes Annex A, Statement of Work, as the document that:

• sets out the nature of the required good or service;
• gives a narrative description of the required work;
• stipulates the deliverables or services needed to fulfil the contract; and
• identifies and summarizes project phases.

CanadaBuys tells buyers to review the client's SoW before soliciting offers and awarding a contract. The review confirms that requirements, deliverables, schedules, tasks and responsibilities are clearly described, so potential offerors can submit competitive and compliant offers.

SOW, Performance Work Statement and Statement of Objectives

NATO associates the SOW with two related documents, the Performance Work Statement (PWS) and the Statement of Objectives (SOO). Depending on the requirement, one of them may serve as the contractual document describing the work requirements. A performance-based SOW describes the outcome or result the contractor must achieve rather than prescribing every method of performing the work.

PSPC's supply arrangement assessor guidance states that the complete description of the work may be called a Statement of Work, a Statement of Requirements or another equivalent term. It also states that the SoW or work description in the resulting contract must match the description in the bid solicitation.

Treasury Board guidance for professional services

The Treasury Board of Canada Secretariat identifies the SoW as a key tool when structuring professional-services procurements. Its guidance says the SoW should clearly define:

• the project or initiative the contract supports;
• the required work and delivery timing;
• deliverables, outcomes, tasks or hours;
• expected quality and performance-management processes;
• communication arrangements;
• processes for changes, emerging issues and disputes;
• security, privacy and accessibility requirements; and
• knowledge-transfer requirements.

What the SoW means for a supplier bidding on Canadian contracts

Treat the SoW as the central document in the solicitation. Read the required work, deliverables and project phases first, then build your offer to address each stated requirement. Check the label as well: a Canadian solicitation may call the work description a Statement of Requirements, a Performance Work Statement, technical requirements or a work description.

Because the contract's work description must match the one in the bid solicitation, the commitments you make against the SoW during bidding carry into the contract. Price and plan only what the SoW describes, and raise any ambiguity through the question process before the solicitation closes.