Overview
Guidance on how and when to complete statement of work (SOW) documentation.
Defining a Statement of Work (SOW)
A detailed, precise, unambiguous statement of work, typically used for purchasing services, clarifies the department needs and expectations, avoiding ambiguity and future disputes.
When does a Statement of Work apply?
A Statement of Work (SOW) outlines the service UCSF is receiving and clearly explains the responsibility of the supplier. You need an SOW for:
- all purchases of Professional services, Consulting or Personal services as defined by the University of California’s (UC) Business and Finance Bulletin 43.
- common services that include multiple phases, timelines and milestones.
- change orders to existing purchase orders (POs) for such services.
- any service provided as part of a purchase of goods/equipment.(for example, purchases of equipment or software that include a complex service component)
You generally do not need an SOW for the purchase of goods; however there may be certain similar purchases with a service component involving multiple phases, timelines, and milestones (for example, purchases of equipment or software that include a complex service component) that will need an SOW.
If you have questions, please connect with your department-assigned buyer.
Completing a Statement of Work
The UCSF SOW template should be completed by the end-user department requesting the services. Supplier input may be needed to help complete it. When the UCSF SOW is complete, please submit the unsigned UCSF SOW with your BearBuy form.
Note: Using a supplier’s SOW template may require negotiation by an Supply Chain Management (SCM) buyer and delay your order. It is not recommended.
How the Statement of Work (SOW) is utilized
SCM professional buyers will:
- Review the legal aspects of the SOW to ensure nothing written conflicts with State/Federal law or UC procurement policy.
- In addition, the buying team has significant experience procuring services and will identify any glaring issues with the SOW. If we find any discrepancies, we will work with you and the supplier to resolve the conflicts before the purchase order is issued binding your department and the University to the agreement.
- Sign the SOW to make it an official commitment between the UC Regents and the supplier.
- Issue the purchase order.
Things I need to know or do with Statement of Work
Utilize the UCSF statement of work template. A statement of work should be included with a BearBuy requisition and is recommended to address the following:
- Project scope: Describe the work being provided, including any work plan. Define required deliverables, if any, and their due dates. Set unambiguous schedule, milestones, performance standards and acceptance criteria, and due dates. Identify any project issues you have encountered or anticipate that may impact the work, such as intellectual property issues, insurance, deliverables, or PHI (Protected Health Information).
- Period of performance: List the start and end date for the entire project.
- UCSF project manager: Indicate the name of the designated UCSF employee who has authority over the work and who can serve as a technical contact for the supplier during the project, if needed.
- Physical location: Describe or provide an address where the work will be performed.
- Supplies and equipment: If supplies and equipment will be used, list them, including delineating those furnished by the University and to be furnished by the supplier or other sources.
- Payment rate: State the dollar amount computed by job, milestone, month, day or hour. Any upfront payments should be avoided. It is also recommended that payments be tied to completion of milestones and/or delivery of deliverables when possible.
- Total not to exceed: State the total dollar amount that the purchase order cannot exceed.
- Payment terms: These should be mutually agreed‐upon – i.e., do not just accept supplier’s proposed terms without consideration. As stated above, any upfront payments should be avoided and it is recommended that payments be tied to completion of milestones and/or delivery of deliverables when possible. Identify any special terms of payment requested by the supplier.
Things to avoid on a Statement of Work
- Work is summarized too broadly: The SOW is the official record of the work the supplier is contracted to complete. It should describe the expected outcomes, any deliverables, and it should include timelines/dates. If we don’t list what we expect in the SOW, we cannot hold the supplier accountable if they fail to meet our expectations.
- Follow-on work: Generally, no supplier who has been awarded a consulting services contract may submit a bid for, nor be awarded a contract, for the provision of services, procurement of goods or supplies, or any other related action that is required, suggested, or otherwise deemed appropriate in the end product of the consulting services contract.
If you have a multi-phase project that includes researching a problem, formulating a project to solve the problem, and then executing the project then you must contact your departmental buyer to bid out the entire project BEFORE you begin the work. Otherwise, California law will exclude your supplier from executing or even bidding on any work in which they took part in creating. This law applies even if UC is managing the project. - Modified acceptance criteria: You should read and understand the acceptance criteria section in the SOW. It outlines under what circumstances your department will need to pay. Many times, suppliers will delete/change the acceptance criteria in the SOW so that UC will pay regardless of quality or completeness of work, or weaken available remedies to fix unacceptable work.
- Adding legal terms to the SOW: Some suppliers add legal clauses that overrule the UC Terms and Conditions. These are never in UC’s best interest and our professional buyers will work to negotiate these out of the SOW every time, which may delay your order.
Statement of Work (SOW) Resources
For assistance with SOW documentation, contact your department assigned buyer.