Page 267 - Project+

If you’re working with vendors to perform some or all of the work of the project, it’s

critical that they know exactly what you are asking them to do. The statement of work
(SOW) details the goods or services you want to procure. In many respects it’s similar
to the project scope statement, except that it focuses on the work being procured. It
contains the project description, major deliverables, success criteria, assumptions, and
constraints. The project scope statement is a good starting point for documenting the

SOW.
The project manager should be involved in the process of creating the SOW to ensure

accuracy of the project requirements. Vendors use the SOW to determine whether they
are capable of producing the deliverables and to determine their interest in bidding on
your project work. The SOW must be very clear and precise. Anything in the SOW that
is ambiguous could lead to a less-than-satisfactory deliverable.

Many organizations have templates for creating a SOW. This ensures that all required
items are covered, and it provides consistent information to vendors. Once the SOW is

complete, you’re ready to ask for vendors to bid on the work.

Vendor Solicitation

Solicitation is the process of obtaining responses from vendors to complete the project
work as documented in the SOW. Typically, a procurement document is prepared to
notify prospective sellers of upcoming work. You can prepare the solicitation notice in
several ways. The most common are as follows:

Request for Information (RFI) An RFI is used when you need to gather more
information about the goods or services you need to procure. This process will give you
a sense for the number of providers or contractors who can provide the goods or
services, and you will get an idea of cost. An RFI or RFQ is used when the costs are
unknown to you and you need an estimate for the goods or services.

Request for Quotation (RFQ) RFQ is similar to the RFI. They both serve the same
purpose, and most organizations use one or the other of these procurement methods

when determining estimates.

Request for Proposal (RFP) An RFP is submitted when you are ready to procure
and begin the work. This process includes submitting the SOW, receiving bids from
vendors and suppliers, evaluating the responses, and making a selection.

RFIs and RFQs may be used interchangeably but may also have different meanings in
different organizations, so make certain you understand which document to use
according to your organization’s process. Regardless of what these documents are
called, they should include your SOW, information regarding how responses are to be

formatted and delivered, and a date by which responses must be submitted. Potential
vendors may also be required to make a formal presentation, or they may be asked to
submit a bid.

Most procurement processes allow for a meeting with prospective vendors prior to

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