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.
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:
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.
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.”
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.