Purpose

The description of the goods or services to be acquired is known as a Specification, in the case of supplies or equipment, or a Statement of Work (SOW), in the case of services.  The purpose of a Specification or SOW is to describe the requirements of projects and programs that have deliverables and/or services to be performed.  The development of the Specification/SOW is a key element of the acquisition planning process as it is inherently related to decisions made by the Acquisitions Management Division (AMD) regarding the extent of competition and the procurement techniques that can be used to fulfill the requirement.  Generally, preparation of the Specification/SOW follows the conclusion of market research.  The resultant Specification/SOW should enable and encourage vendors to compete for the awards, and will form the basis by which the success of the selected contractor will be judged.  The Specification/SOW must be tailored to each requirement and must define requirements in clear, unambiguous language.

Specifications/SOWs fall into two broad categories:

1.  Design Specifications describe in precise detail the materials to be used and the manner in which the work is to be performed.  The contractor has no discretion to deviate from design specifications.  By using a design specification, the Government warrants that if the contractor follows the specifications the resultant product/service will be suitable for its intended purpose.  Design specifications are often associated with various types of construction projects.

2.  Performance/Functional Specifications and Statements of Work describe the requirement in terms of the agency’s needs rather than a precise description of how the work is to be accomplished.  Performance/Functional Specifications and Statements of Work promote more competition by giving contractors more flexibility in addressing the requirements.  There are several types of Performance/Functional Specifications and Statements of Work:

a.  Brand Name or Equal - If an item is identified as brand name or equal (i.e., 3M Scotch Tape), the specifications should reflect the characteristics and level of quality that will satisfy the Government’s needs.  The salient physical, functional or performance characteristics of “equal” products must meet what is specified in the solicitation. Vendors will be required to provide information regarding any modifications required to make a product conform to the solicitation requirements.  If you develop a brand name or equal specification, the following information should be included:

(1) Request vendors to provide descriptive literature with their offers, such as illustration, drawings, or marketing material, that clearly addresses the salient characteristics;
(2) Description of the salient physical, functional, or performance characteristics of the brand name item that an “equal” item must meet to be acceptable; and
(3) Clearly identify the item by brand name (if any), and make or model number.

b.  Performance Work Statement (PWS) - A PWS is the preferred type of statement of work for acquiring services, except for architect-engineering, construction, utility, or services that are incidental to supply purchases.  A PWS is a description of the tasks to be performed in terms of required outcomes or expected results.  The contractor is responsible and accountable for achieving the required results upon proposed technical and management approaches and internal processes that have not been dictated by the Government.  Vendors are, therefore, provided greater flexibility in developing their proposals, but consequently accept a significantly greater share of the risk for contract performance.   A PWS relies on well defined tasks describing the outcome (end result) of the requirement and the use of measurable performance standards and surveillance methods in a competitive environment.  This will encourage competitors to develop and institute innovative and cost-effective methods of performing the work.  The Government is responsible for defining the tasks and required/desired results, establishing measurable performance standards, and surveillance, or monitoring, of the tasks and results by using established methods to make sure the contractor has met the standards.  A good PWS will:

(1) Describe requirements in terms of required results rather than prescribed methods of performance of the work;
(2) Use measurable performance standards (i.e., in terms of quality, timeliness, quantity, etc.);
(3) Include methods of measurement the Government will use to insure the standards have been met (i.e., the COTR will review submitted deliverable, test prototype, etc.);
(4) In requirements that are complex or a high dollar value, require contractors to submit quality control plans where a quality assurance plan will be based.

Additional guidance for developing Specifications and Statements of Work is available at http://www-i.nist.gov/admin/amd/acquisition/sow_gen_guidelines_prep.html.