Specifications and Scope of Work: The Keys to Success

Details are important. In procurement, specifications and scope of work are the details. These are required as part of any solicitation process to clearly outline the entity’s needs and provide an objective method for evaluation. To ensure fair competition, specifications should not be restrictive or swayed towards a specific product or supplier.

The National Cooperative Procurement Partners Association (NCPP) recently debuted its RFP Tracking Project, which quantifies the personnel hours and direct expenses involved in solicitations, also known as an Invitation to Bid (bid) and Requests for Proposals (RFP). During this 8-month project, various entities across the United States tracked their personnel hours for a chosen solicitation, documenting each step of the procurement process from inception to contract award. The project’s goal is to share the results with public procurement teams and provide data to strategize and prioritize solicitation efforts more effectively, optimize resource allocation, and justify additional support during budget approvals.

In reviewing all the phases for any solicitation process, the single step that required the greatest number of personnel resources was developing specifications and scope of work. Knowing this, procurement teams can better appreciate the importance of this stage in creating the best solicitation possible.

Developing Specifications

Specifications are required as part of any bid process to ensure a fair process that clearly outlines the needs and expectations of the project and criteria for evaluation and acceptance or denial of a bid/proposal. A specification should summarize the basic needs, but also allow competition and equivalent materials to be offered, if available.

There are several types of specifications that can be used. The type of specifications chosen often depend on the details needed for the item to be purchased. The following are four types of typical specifications used for government purchases:

• Descriptive (Functional): Describes the basic requirements of a commodity or service. These specifications are often very short and to the point, but they may lack details. Descriptive specifications are often used when an entity is attempting a new project or has a problem to be solved, but they don’t have a specific solution in mind.
• Performance: Contains specific requirements such as size, capacities, speed, cycle times, and expected levels of performance. These specifications can be used for a specific vehicle or piece of heavy equipment, furniture, or laptops and printers. The performance of the purchased product is one of the most important criteria.
• Engineered: Used to purchase units with a very high level of detail, describing dimensions, exact materials to be used, manufacturing processes, and step-by-step procedures for assembly. These types of specifications can be extremely detailed and are often authored with a focus towards the manufacturing level. An example of an engineered specification might be a mobile command post for a police department or a fire department ladder unit.
• Hybrid: the hybrid specification combines the best of all the above. These specifications can contain basic information common to specific makes and models, with performance requirements needed to accomplish a specific goal, and possibly very detailed requirements such as metal preparation and finishing procedures. The hybrid specification can be a longer detailed section, but only where needed to ensure that all bidders are providing a comparable product or service.

For more complicated procurements or construction projects, the specifications may be very detailed, with design and architectural plans, service components, and budgetary payments based on deliverables or achieved timetables.

Scope of Work Development

According to Principals and Practices of Public Procurement, published by the NIGP, the Institute for Public Procurement, “The scope of work is prepared at the beginning of any procurement and becomes the basis for any resulting solicitation. A well-written scope of work provides the supplier with a clear understanding of the entity’s needs to ensure a successful procurement. In addition, a well-written scope of work contributes to an entity’s reputation and credibility for performing due diligence and acting with impartiality.”

The scope of work provides guidance on how the contract will be ultimately served, including details about approach, deliverables, timelines, and desired outcomes. It is important that it be clear and concise.

For example, “a timely manner” can be subjective. One person’s interpretation of “timely” can be different than another. A better written expectation could be, “Supplier shall respond within 4 hours of notification of an issue or problem.”

Key components include:

1. Project Definition: The objective of this purchase or project, including the problem being solved, the benefits it will bring, and who it will ultimately serve.
2. Deliverables: Include any documents, reports, software, services, or products required to be provided for the project.
3. Timelines: Provide timelines for deliverables and activities. For a long-term project, this should include tasks and overall project schedule.
4. Define Quality Standards: Outline the product or service quality standards that must be met in the project. This should include any requirements for testing, quality control, and quality assurance.
5. Establish Communication Procedures: Identify the key contacts for each side of the contract, and clarify how communication will take place, who will be involved, and what methods will be used.

Why are Specifications and Scope of Work Important?

Without clearly written specifications and scope of work, interested bidders will have difficulty responding to the solicitation. This could lead to an increased number of questions, which will likely lead to increased clarifications, changes, or addenda to address any ambiguities. When trying to evaluate received proposals, the evaluation team will struggle to clearly match the rating criteria with the submissions. Finally, even if the contract is ultimately awarded, it will be difficult to manage the contract without clear direction for both the entity and the awarded supplier.