One of the most difficult tasks that purchasers face is converting user or internal customer needs to new specifications and requirements. For most, it’s easier said than done, while others simply dread the thought of constructing a Statement of Work. Failure to develop a properly defined scope of work, specification, or requirement may mean the solicitation will need to be abandoned and repeated with corrections. Purchasers who are involved in putting together specifications, requirements, or SOWs need to be aware that it is worth the investment, time, and effort to create a high quality outcome. Thus, it is important that purchasers understand the importance of good specifications and requirements, as well as their contractual and practical significance. This presentation will offer you practical techniques, tools, and process methods for constructing effective specifications, requirements, and SOWs. Key areas of focus that will be discussed in this workshop are:  Internal customer or user needs  The importance of a scope of work  SOWs and work requirements  The Statement of Work  Writing specifications and requirements

1. Session Code: CI
THE ART OF PLANNING AND
WRITING SPECIFICATIONS AND
REQUIREMENTS
Thomas L. Tanel, C.P.M.
President and CEO
CATTAN Services Group, Inc.
Monday, April 26 2010, 10:40 AM

2. Presentation Outline
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Introduction
Internal or customer needs
The importance of a scope of work
SOWs and work requirements
The Statement of Work
Writing specifications and requirements
Conclusions and Q&A

3. Development of Specifications
and Requirements
• Most critical part of the solicitation and
contracting process
• Each purchase requires its own specification
• The specification communicates the user’s
requirements to the service provider

4. Internal Customer or User
Needs
• It is an evolutionary process
• Involves continuous liaison among:
– Internal customer or user
– Specification writer
– Procurement/purchasing staff

5. Internal Customer or User
Needs
•
Purchasing staff should be involved from the
beginning:
1. Internal customer should consult because it saves
time and money in long run
2. Early Purchasing Involvement (EPI) to assure a
meeting of the minds
3. Over 70% of potential cost savings occur during
the concept, design or SOW stage

6. Internal Customer or User
Needs
•
Purchasing must drive the efforts
•
Purchasing needs to understand what
attributes are relevant and significant
•
Purchasing must focus on creating just what
users want

7. Importance of the Scope
of Work
• Why is it important?
– Converting user or internal customer needs to new
specifications and requirements
– Converting user or internal customer needs for
existing or given specifications and requirements

8. Scope of Work—What
To Include
Minimum
essential
elements to
include in the
Scope of
Work
• Provide background
information
• Specify contractor deadlines
• Ascertain how contractors
identify costs
• Identify unique requirements
• Require confidentiality or
non-disclosure
• Warrant or verify licenses,
certifications, etc.

9. Scope of Work & Issuing
the RFI
• An RFI is generally used for market exploration
• It is used to notify contractors of an opportunity.
• It may be used to help a purchaser determine, based
on the responses, which contractors will be invited to
submit a detailed RFP.

10. Structuring A Scope of
Work
• Scope of Work definition—The work involved in the
definition, design, and production of the components
for a project’s deliverables and their assembly into a
satisfactory working whole.
• A scope of work describes the work to be performed
usually includes a timeline and level of effort so a
supplier or vendor can respond to the RFP with a
proposal and cost estimate.

11. Scope of Work—
Components
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Project Background and
Objectives
Project Description
Timetable/Schedule
Vendor or Contractor Cost
Proposal
Political or Business
Environment
Additional Contractor
Qualifications
Additional Contractual Terms
Contractor Liability Issues
Evaluation Criteria
Administrative Items
What does the
Scope of Work
include?
Is there a
time phased
requirement for
completion?

12. Specifications Defined—A
Document
•
Describes the essential technical
requirements for items, materials or services
including the procedures for determining
whether or not the requirements have been
met
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Specifies, in a complete, precise, verifiable
manner, the requirements, design, behavior,
or other characteristics of a system,
component, product, result, or service

13. Simple Versus Complex
Specifications
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Simple specification defines the
requirement with less information
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Complex specifications are written,
lengthy documents for one-off
requirements

14. The Statement of Work (SOW)
• SOWs will rarely consist of pure functional,
performance, or design specifications.
• They will almost always consist of a
predominant type or some combination.
• It is important that their legal and practical
significance be understood.

15. Three Generic Classes of
Statements of Work (SOWs)

16. Functional Specifications
• The broadest type of work description that
requires only that the contractor achieve an
end result.
• Does not specify the means of achieving that
result, nor does it specify the processes or
procedures which the contractor is required to
use in performance.

17. Performance Specification
 Next in the breadth of the types of SOWs is a
performance specification.
 Differs from the functional specification in
that it specifies the means by which the
performance objective is to be achieved.

18. Design Specifications
 The most restrictive of the three types because
of the level of detail.
 Not only is the means of performance
specified, the processes and procedures which
must be used in performing the work are
prescribed.

19. Benefits of a Well Written
Statement of Work (SOW)

20. Statement of Work—
Performance Based Contract
The key factor in the success of
The key factor in the success of
the Performance Based Contract
the Performance Based Contract
is your ability to write good
is your ability to write good
Statement of Work requirements.
Statement of Work requirements.

21. Performance Based
Requirement—Example
Standard
Maximum Allowable
Degree of Deviation
from Requirement
(ASL)
Operate
Taxi
Customer must be picked
up within 4 minutes of the
agreed upon time.
5%
8%
Operate
Scheduled
Bus
Bus must not arrive at the
stop later than scheduled
time or depart earlier than
schedule time plus or
minus 2 minutes.
4%
10%
Operate
Unplanned
Bus
Bus must arrive not later
than 4 minutes from
agreed upon time between
customer and dispatcher.
5%
4%
Required
Service
ASL (Authorized Service Level)
Method of
Contract
Surveillance
Deduction from
Contract Price for
Exceeding the ASL

22. Planning the Statement of
Work or Specification
• Writing a statement of work (requirement) or
specification (spec) to make it “contractible’
and “administrable” is a serious challenge to
the cross-functional writing team.
• We recommend the following 7 steps on the
next 3 slides.

23. Planning the Statement of
Work or Specification
1. A review of the requirements and documents
2. A review of the various documentation
3. The identification of potential cost drivers
and items subject to price volatility

24. Planning the Statement of
Work or Specification
4. The establishment of a preliminary work
breakdown structure (WBS).
5. Identification of the participating functional
departments

25. Planning the Statement of
Work or Specification
6. Description of work tasks in terms of data to
be delivered
7. Specification of work tasks in performance
terms

26. Attributes of Good SOW
Requirements
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Complete
Consistent
Correct
Clear
Traceable
Modifiable
Verifiable
Implementation free

27. Guide to Preparing a
SOW—Elements
• Introduction &
Background
• Objectives
• Scope of Work
• Task Identification
• Timeframe &
Deliverables
• Contract Budget
• Other Factors to
Consider
Minimum
essential
elements to
include in the
Statement of
Work

28. The Language of
Specification
• Remember, you are writing specifications.
• Try not to you use words that allow a broad
range of interpretation
• Avoid vague and ambiguous adjectives and
adverbs

29. Specifications & Requirements—
Write, Edit, … & Rewrite
• Rewriting and editing are, literally, half the
battle.
• It is important that it is perfect:
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no spelling errors,
no grammatical errors,
no logic errors, and
no mock up errors either.

30. Specifications & Requirements—
Write, Edit, … & Rewrite
Some basic things to do during the editing
process:
1. Check your table of contents.
2. Edit from beginning to end at least three
times after you think it is done.
3. Have someone else proofread for you.

31. Specifications & Requirements—
Write, Edit, … & Rewrite
4.
5.
6.
7.
Review it.
Avoid self-conflicting input.
Check for tiering specifications.
Identify paragraph cross-references
which cite other paragraphs within the
same document.
8. Complete your final editing

32. Specifications & Requirements—
Write, Edit, … & Rewrite
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Finally, prepare the functional spec or
requirement for another review.
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Have everybody sign off on it once a
consensus has been made.

33. Common Causes of
SOW Misinterpretation
• No pattern, structure, or chronological order
• Wide variations in different task descriptions
• Having tasks, specifications, and special
instructions scattered throughout the SOW
• Failure to use a table of contents
• Failure to obtain independent 3rd party review
• Using imprecise language

34. Conclusion and Q&A
• Conclusions
• Questions and Answers
• Thank You
• Upcoming Track
Sessions
© 2010 CATTAN Services Group, Inc.

35. Track 5: Services Procurement
• Monday
– BI
– CI
9:20 – 10:20 am Strategic Sourcing for Entertainment
10:40 – 11:40 am Planning & Writing Specs & Requirements
• Tuesday
– EI
10:20 – 11:40 am Can Creative Vision Help Your Bottom
Line?
– FH
1:30 – 2:40 pm Optimizing Meetings Spend
– GI
3:00 – 4:00 pm Another Way to Negotiate Service
Contracts