SOW & Procurement Document:
Statement of Work:
From Scope Baseline -> Procurement Statement of Work ->
This has to be Clear, Concise, Completely define the Specifications, Quantity, Quality, Performance Data, Period of Performance, Performance reporting, Work location, post-project operation support and other requirements.
Procurement SOW could be iteratively revised as required as it moves through the Procurement process until incorporated into a signed Contract or Agreement.
This is done so that Sellers can clearly understand the requirements and determine if they are capable to deliver.
Procurement Document:
Procurement Document = Procurement SOW + Desired Form of response from sellers + sometimes Seller selection Criteria.
Procurement documents are also known as Bid documents or Terms of Reference (TOR).
Bid documents are used to solicit proposals from prospective sellers. Terms such as bid, tender, or quotation are generally used when the seller selection decision is based on price (as when buying commercial or standard items),
While term such as proposal is generally used when considerations such as technical capability or technical approach are the most important. The conditions involving their use are presented below:
Terms of reference (TOR) is sometimes used when contracting for services. Similar to the procurement SOW, a TOR typically includes these elements:
Buyer sends Procurement Document to Sellers.
Buyer -> Procurement Document -> Seller 1 to n
Interested Sellers send each of their proposal to Buyer.
Buyer <- Proposal 1 <- Seller 1
<- Proposal 1 <- Seller n
Statement of Work:
From Scope Baseline -> Procurement Statement of Work ->
This has to be Clear, Concise, Completely define the Specifications, Quantity, Quality, Performance Data, Period of Performance, Performance reporting, Work location, post-project operation support and other requirements.
Procurement SOW could be iteratively revised as required as it moves through the Procurement process until incorporated into a signed Contract or Agreement.
This is done so that Sellers can clearly understand the requirements and determine if they are capable to deliver.
Procurement Document:
Procurement Document = Procurement SOW + Desired Form of response from sellers + sometimes Seller selection Criteria.
Procurement documents are also known as Bid documents or Terms of Reference (TOR).
Bid documents are used to solicit proposals from prospective sellers. Terms such as bid, tender, or quotation are generally used when the seller selection decision is based on price (as when buying commercial or standard items),
While term such as proposal is generally used when considerations such as technical capability or technical approach are the most important. The conditions involving their use are presented below:
- Request for information (RFI). An RFI is used when more information on the goods and services to be acquired is needed from the sellers. It will typically be followed by an RFQ or RFP.
- Request for quotation (RFQ). An RFQ is commonly used when more information is needed on how vendors would satisfy the requirements and/or how much it will cost.
- Request for proposal (RFP). An RFP is used when there is a problem in the project and the solution is not easy to determine. This is the most formal of the “request for” documents and has strict procurement rules for content, timeline, and seller response
Terms of reference (TOR) is sometimes used when contracting for services. Similar to the procurement SOW, a TOR typically includes these elements:
- Tasks the contractor is required to perform as well as specified coordination requirements;
- Standards the contractor will fulfill that are applicable to the project;
- Data that needs to be submitted for approval;
- Detailed list of all data and services that will be provided to the contractor by the buyer for use in performing the contract, if applicable; and
- Definition of the schedule for initial submission and the review/approval time required.
Buyer sends Procurement Document to Sellers.
Buyer -> Procurement Document -> Seller 1 to n
Interested Sellers send each of their proposal to Buyer.
Buyer <- Proposal 1 <- Seller 1
<- Proposal 1 <- Seller n
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