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Developing a Scope of Work

Developing a Scope of Work. A Supplier, Buyer, End User Relationship Approach. objectives. What is a Scope of Work. Understand how relationships with end users and suppliers will assist in developing competitive scopes of work.

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Developing a Scope of Work

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  1. Developing a Scope of Work A Supplier, Buyer, End User Relationship Approach

  2. objectives • What is a Scope of Work. • Understand how relationships with end users and suppliers will assist in developing competitive scopes of work. • Define the scope of work creation process with a focus on relationships.

  3. Sheep Specs • “What does the Surgeon General have to do with sheep?” • “The analysis and policy determination for the parameters about which will be tendered research data on the optimal test ruminant.” • “We can’t just go out and buy sheep, sir.” “Why not?” “We need sheep specs.” • “How long to get your sheep specs?” “Not long at all. Six to eight months.”

  4. Scope of Work What a Scope of Work is: “A description of the work to be performed or services to be provided. It describes tasks, directs methodologies to be used, and sets forth the period of performance.” A Scope of Work also includes: Delivery Requirements Objectives Schedule Deliverables Responsibilities Monitoring Criteria

  5. Avoid Repetition Clear Accurate Logical

  6. Scope of Work examples • Develop data, analysis, community input, and reporting protocol. • Identify health effects, both positive and negative, and demolition-related sequelae. • Design, plan, and implement the mechanisms to gather appropriate data, develop protocols for detailed analysis, and provide a comprehensive evaluation of the health impact of demolitions. This is a one-time purchase of EOD explosives. Please list all shipping & handling fees in your quote. Clear Accurate No Repetition Logical Vehicle calibration services for front wheel drive vehicles, including SUV's and Pickup Trucks- 120x2  (120 vehicles calibrated twice a year) The selected proposer shall be responsible for parking citation data entry, collection of payment, processing of correspondence, and all functions related to parking citation processing and adjudication; be responsible for leasing, furnishing, equipping, staffing, and operating the Office of Parking Violations

  7. Leveraging the Relationship

  8. A purchasing Balancing Act

  9. Developing the End User Relationship Understanding of Procurement Policies Communication = Access to Information Listen. Listen. And Listen Again. How have you developed the end user relationship?

  10. Developing the Supplier Relationship

  11. Case Study • John, a newer buyer in the purchasing department of Sail Away City, received a requisition with the following details: • B.N.W. Inc. milling machine model #AMR with attached robotic arm model #STYX • Estimated cost $80,000 • Needed in 4 weeks. • John doesn’t know the end user. He has become acquainted with a few companies within the industry but isn’t comfortable with his knowledge about all of the players. • John creates the Invitation for Bid using the exact wording detailed in the requisition, assuming the end user has done the research and that multiple distributors exist. He issues the solicitation for seven days due to the tight lead time. Question window is only three days. • Vendors, other than B.N.W., submit questions and comments such as: What are the specifications, Will you accept alternates, Our lead time is a minimum of 8 weeks, and What is the required footprint? John provides vague answers based upon his limited knowledge. • Bid closes with only one bidder, B.N.W. Inc, and the price for the system is $110,000.

  12. After Award • John awards to B.N.W Inc. for the product specified. • Talks begin between John and B.N.W. regarding specifications, delivery, and timeline. John does his best to answer specification related questions but is ultimately only guessing. • B.N.W. alerts John that the lead time is actually 8 weeks. Additionally, the equipment is so large that a loading dock will be required. The delivery facility does not have one requiring the expense of a lift gate ($500). • End user decides that she wants to add additional components to the equipment to make it capable of doing additional work. • A change order for $15,000 is submitted for the additional components. • Order total is $125,500 and the product did not arrive within the required time.

  13. Questions to Consider • What were some of the key flaws in John’s scope of work creation process? • What factors might have influenced John to perform this process? • What processes could be implemented to assist John in understanding the end user’s needs? • What processes could be implemented to assist John in understanding the competitive landscape?

  14. Scope of Work Creation Process

  15. Questions

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