[Code of Federal Regulations]

[Title 48, Volume 4]

[Revised as of October 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 48CFR307.7106]



[Page 25-26]

 

            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM

 

                  CHAPTER 3--HEALTH AND HUMAN SERVICES

 

PART 307_ACQUISITION PLANNING--Table of Contents

 

                  Subpart 307.71_Requests for Contract

 

Sec. 307.7106  Statement of work.



    (a) General. A statement of work (SOW) differs from a specification 

and purchase description primarily in that it describes work or services 

to be performed in reaching an end result rather than a detailed, well 

defined description or specification of the end product. The SOW may 

enumerate or describe the methods (statistical, clinical, laboratory, 

etc.) that will be used. However, it is preferable for the offeror to 

propose the method of performing the work. The SOW should specify the 

desired results, functions, or end items without telling the offeror 

what has to be done to accomplish those results unless the method of 

performance is critical or required for the successful performance of 

the contract. The SOW should be clear and concise and must completely 

define the responsibilities of the Government and the contractor. The 

SOW should be worded so as to make more than one interpretation 

virtually impossible because it has to be read and interpreted by 

persons of varied backgrounds, such as attorneys, contracting personnel, 

cost estimators, accountants, scientists, educators, functional 

specialists, etc. The SOW must clearly define the obligations of both 

the contractor and the Government so as to protect the interests of 

both. Ambiguous statements of work can create unsatisfactory 

performance, delays, and disputes, and can result in higher costs.

    (b) Term (level of effort) vs. completion work statement. Careful 

distinctions must be drawn between term (level of effort) SOWs, which 

essentially require the furnishing of technical effort and which may 

include a report thereof, and completion type work statements, which 

require development of tangible items designed to meet specific 

performance and/or design characteristics. (See FAR 16.306(d) for 

distinction).

    (1) Term (or level of effort). A term or level of effort type SOW is 

appropriate for research where one seeks to discover the feasibility of 

later development, or to gather general information. A term or level of 

effort type SOW may only specify that some number of labor-hours be 

expended on a particular course of research, or that a certain number of 

tests be run, without reference to any intended conclusion.

    (2) Completion. A completion type SOW is appropriate to development 

work where the feasibility of producing an end item is already known. A 

completion type SOW may describe what is to be achieved through the 

contracted effort, such as development of new methods, new end items, or 

other tangible results.

    (c) Phasing. Individual research, development, or demonstration 

projects frequently lie well beyond the present state of the art and 

entail procedures and techniques of great complexity and difficulty. 

Under these circumstances, a contractor, no matter how carefully 

selected, may be unable to deliver the desired result. Moreover, the job 

of evaluating the contractor's progress is often difficult. Such a 

contract is frequently phased and often divided into stages of 

accomplishment, each of which must be completed and approved before the 

contractor may proceed to the next. Phasing makes it necessary to 

develop methods and controls, including reporting requirements for each 

phase of the contract and criteria for evaluation of the report 

submitted, that will provide, at the earliest possible time, appropriate 

data for making decisions relative to future phases. A phased contract 

may include stages of accomplishment such as research, development, and 

demonstration. Within each phase, there may be a number of tasks which 

should be included in the SOW. When phases of work can be identified, 

the SOW will provide for phasing and the request for proposals will 

require the submission of proposed costs by phases. The resultant 

contract will reflect costs by phases, require the contractor to 

identify incurred costs by phases, establish delivery schedules by



[[Page 26]]



phase, and require the written acceptance of each phase. The provisions 

of the Limitation of Cost clause shall apply to the estimated cost of 

each phase. Contractors shall not be allowed to incur costs for phases 

which are dependent upon successful completion of earlier phases until 

written acceptance of the prior work is obtained from the contracting 

officer.

    (d) Elements of the SOW. The elements of the SOW will vary with the 

objective, complexity, size, and nature of the acquisition. In general, 

it should cover the following matters as appropriate.

    (1) A general description of the required objectives and desired 

results. Initially, a broad, nontechnical statement of the nature of the 

work to be performed. This should summarize the actions to be performed 

by the contractor and the results that the Government expects.

    (2) Background information helpful to a clear understanding of the 

requirements and how they evolved. Include a brief historical summary as 

appropriate and the relationship to overall program objectives.

    (3) A detailed description of the technical requirements. A 

comprehensive description of the work to be performed to provide 

whatever details are necessary for prospective offerors to submit 

meaningful proposals.

    (4) Subordinate tasks or types of work. A listing of the various 

tasks or types of work (it may be desirable in some cases to indicate 

that this is not all-inclusive). The degree of task breakout is directly 

dependent on the size and complexity of the work to be performed and the 

logical groupings. A single cohesive task should not be broken out 

merely to conform to a format. Indicate whether the tasks are sequential 

or concurrent for offeror planning purposes.

    (5) Reference material. All reference material to be used in the 

conduct of the project that tells how the work is to be carried out must 

be identified. Applicability should be explained, and a statement made 

as to where the material can be obtained.

    (6) Level of effort. When a level of effort is required, the number 

and type of personnel required should be stated. If known, the type and 

degree of expertise should be specified.

    (7) Special requirements. (as applicable). An unusual or special 

contractual requirement, which would impact on contract performance, 

should be included as a separate section.

    (8) Deliverables reporting requirements. All deliverables and/or 

reports must be clearly and completely described.