Attachment 4 - SOW Requirements.docx

ATTACHMENT – STATEMENT OF WORK (SOW) PROCESS REQUIREMENTS

The contractor shall understand and agree that the general protocol for SOW workflow shall be as described below:

1. The contractor’s solution must allow for discretionary services in order to provide the state with needed assistance for the solution which was not described in the RFP (outside of the contract requirements included herein). The contractor shall agree that the state agency may utilize the Statement of Work (SOW) as a means (1) to identify the specific tasks to be performed and (2) to mutually agree upon the total price to be paid to the contractor upon completion of the specified tasks. The SOW process shall occur in a controlled sequence of proposals and approvals by the Project Management Team (PMT) as outlined below. The contractor shall understand and agree that the general protocol for SOW workflow shall be as described below:

1.1. STEP 1: SOW REQUEST

The state agency’s designated PMT will present a written request for each SOW to the contractor, in a standard format. The state agency’s request must explain the scope of the project and the tasks the state agency desires the contractor to perform, including applicable business and technical specifications.

1.2. STEP 2: DRAFT SOW

The contractor must respond (within a prescribed number of days mutually agreed upon by the state agency and the contractor) to each such SOW request from the PMT with a draft SOW which provides a statement of cost (based upon the contracted hourly/daily rates specified on the RFP pricing pages) and time, technical and strategic alternatives, and solution recommendations.

1.3. STEP 3: APPROVAL OF DRAFT SOW

If the draft SOW is approved by the PMT, the contractor must then prepare a final SOW for resubmission to the PMT for final approval.

1.4. STEP 4: FINAL SOW

The contractor’s final SOW must include:

a. Contract number;

b. State agency name/address;

c. State agency designated project director name and phone number;

d. Contractor contact name and phone number;

e. Brief title of specific SOW;

f. Final SOW issue date;

g. A detailed itemization and description of all of the project tasks which shall be completed by the contractor (i.e. project work), including requirements for and specified frequency of any required status reports; the specified project tasks and deliverables must be clearly stated and must be quantifiable;

h. The firm, fixed total number of project hours for contractor personnel and the firm, fixed cost (based upon the hourly/daily rates specified on the pricing pages);

i. Detailed completion schedule for each task/component of the project work;

j. Mutually agreed upon turnaround times for the agency’s PMT to review, approve and formally accept or reject the components of the contractor’s project work in accordance with the approved final SOW;

k. Mutually agreed upon milestones for compensation of project costs for the contractor’s project work, including any mutually agreed upon holdbacks for specified deliverables and holdback release time frames for specified deliverable completion;

l. Identification of the specific tasks within each component of the SOW which must be completed by state agency personnel; and

m. Signature and date lines for both the contractor and the state agency’s PMT to signify approval.

1.5. STEP 5: APPROVAL OF FINAL SOW

The contractor and the PMT must indicate mutual acceptance of the final SOW by signing and dating the final SOW. The state agency’s PMT (1) must retain one signed copy; (2) must forward a copy to the Division of Purchasing for inclusion in the contract file and (3) must send one copy to the contractor.

1.6 STEP 6: AUTHORIZATION TO PROCEED/ SOW PROJECT WORK

An approved final SOW alone does not constitute an authorization to proceed with project work. Before proceeding with project work, the contractor must receive a properly authorized purchase order or other form of authorization given to the contractor at the discretion of the state. Project work shall include the contractor’s completion of the tasks identified in the final SOW.

1.7. STEP 7: FORMAL ACCEPTANCE

Upon the completion of all project work of a given SOW, the contractor must notify the state agency’s PMT in writing and shall submit an invoice in accordance with the SOW approved by the state agency’s PMT. The agency’s PMT shall review, approve, and formally accept or reject the components of the SOW project work in accordance with the turnaround time outlined in the SOW. Formal acceptance shall not be unreasonably delayed or withheld by the state.

1.8. STEP 8: COST RECOVERY FOR CONTRACTOR

Project costs for the SOW project work shall be reimbursable upon formal acceptance by the state agency’s PMT in accordance with the milestones for compensation outlined in the SOW.

2. General SOW Requirements:

2.1. The contractor shall submit draft and final SOWs in a timely manner. The state agency and the contractor shall mutually agree upon the prescribed number of days for the contractor to submit the draft and final SOWs.

2.2. The state agency’s PMT reserves the right to reject any contractor-submitted SOW, and/or request the contractor to submit a revised SOW with adjustments (revised cost, length of time, solution recommendation, etc.).

2.3. The contractor shall not be paid for the preparation of the SOW.

2.4. A SOW request, the draft and final SOWs, and the contractor’s project work must be within the scope of the performance requirements identified in the contractor’s awarded contract, and must not change any provision of the contract.

2.5. Any changes to the SOW must be formalized in writing as an official revision to the final SOW. The format of SOW revisions shall be consistent with the format of the final SOW as outlined above, including the distribution of a copy to the contractor, and retaining a copy for the agency’s PMT. The contractor shall agree and understand the firm, fixed cost stated in the final SOW shall not be increased unless the state agency requests a corresponding increase in the scope of work under the SOW. If the scope of work does not increase, the contractor shall complete all work agreed upon in the SOW at the firm, fixed cost stated in the SOW.

2.6. The state agency’s PMT shall have the right to terminate the SOW at any time, for the convenience of the state agency, without penalty or recourse, by giving written notice to the contractor at least five (5) business days prior to the effective date of such termination. In the event of termination pursuant to this paragraph, all developed source code, documents, data, reports, and accomplishments prepared, furnished or completed by the contractor pursuant to the terms of the contract shall, at the option of the agency’s PMT become the property of the state. The contractor shall be entitled to receive compensation for that work completed and accepted by the state pursuant to the SOW prior to the effective date of termination.

2.7. The duration of any SOW must not exceed the effective contract period.

3. SOW Invoicing: The contractor shall submit an itemized invoice to the state agency within 30 calendar days after completion of and in accordance with the mutually agreed upon milestones for compensation of project costs for the contractor’s project work (as specified in applicable SOW).