7460.8 REV 2
CHAPTER 9. SPECIFICATIONS AND STATEMENTS OF WORK
9.1 General
This chapter describes the development of specifications and statements (or scopes)
of work, along with their uses. Properly prepared or described specifications and
statements of work (1) enhance competition, and (2) clarify the relationship between
the contractor and the PHA, resulting in improved contract administration
9.2 Regulatory Requirement
24 CFR 85.36(c) states, in part, “all procurement transactions shall be conducted in
a manner providing for full and open competition.” In compliance with this
requirement, the specifications or statement of work must be designed so as not to
restrict competition to one supplier.
9.3 Specifications (24 CFR 85.36(c)(1)(i))
A. Definition. A specification is a detailed description of materials,
supplies, equipment, pre-cuts, or construction work that is used in
the procurement process to tell prospective contractors precisely
what the PHA desires to purchase. (A statement or scope of work is
a unique type of specification generally used for the procurement
of professional or management services, as discussed in paragraph
9.4.)
B. Specification Types. Three general types of specifications are used
in preparing contracts for equipment, supplies, or construction –
functional or performance specifications, design specifications,
and brand name or equal specifications. While these general types
are described below, it is rare to find specifications that fit
completely into just one of the above categories. Most
specifications contain a combination of design and performance
requirements and may, include brand name or equal descriptions
of components.
1. Functional or Performance Specifications. These
specifications contain performance characteristics
that are desired for the item or that identify how
the item functions. The detailed design or exact
measurements are not stated.
A functional or performance specification is
inherently risky. Performance specifications state
the overall requirements so that each contractor may
furnish its own item to meet the required
performance. For example, a new boiler specification
can simply call for a gas-fired hot water boiler
that will produce 100,000 British Thermal Units
(BTU) per hour. It is easy to imagine a gas-fired
boiler that can produce 100,000 BTUs per hour but
may also require continuous and costly maintenance.
2. Design Specifications. Design specifications contain a
description of the item desired as opposed to
performance standards. Design specifications may be as
detailed as needed. Depending on the nature of the
item, the design specifications may contain precise
measurements, tolerances, materials, product tests,
quality control, and other detailed information,
provided competition is not being limited to one
product. The information furnished in the specification
should be sufficiently detailed to ensure that all
items manufactured to the specifications will be
virtually the same. A detailed description of kitchen
cabinets, giving dimensions, fastening details,
materials, and hardware, is one example of this type of
specification.
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3. Brand Name or Equal Specifications
(24 CFR 85.36(c)(1)(vi)). Under this form of
specification, clear and accurate product descriptions
are developed. These descriptions shall not contain
features that unduly restrict competition. It may be
necessary to describe technical requirements for
materials and equipment by referencing brand name
products in order to define performance or other
salient requirements. References to brand names shall
be followed by the words “or equal” and a description
of the item’s essential characteristics so that
competition is not restricted.
Specific brand names may be used only for establishing
design and quality standards and only if there is no
other reasonable method of designating the required
quality of the item desired. When brand names or
catalog numbers are used, inform the offerors that
such references establish only design or quality
standard; in fact, any other products that clearly and
demonstrably meet the standard are also acceptable.
C. Standardizing Inventory. Many PHAs, for efficiency, standardize
their inventory of equipment and parts. As stated above, PHAs
must comply with procurement standards that requires full and
open competition and prohibits using specifications that unduly
restrict competition. To standardize the PHA’s inventory,
specifications or descriptions that use brand names may be used
only when accompanied by the term “or equal.” The specific
features of the product (design, functional, or performance)
that are essential in order to be considered “or equal” shall be
clearly stated. In addition to the brand name product specified,
any other product that meets the same technical requirements
shall be given full and fair consideration.
In all cases, the PHA should give all offerors the opportunity
to present reasons or data showing that their product can meet
the stated requirements. Descriptions or specifications shall
not be written so as to specify a particular product or feature
of a product particular to one manufacturer unless that feature
or product is critical to the intended use.
D. Avoiding Manufacturers Specifications. PHAs should avoid
incorporating a particular manufacturer’s specification as the
project specification. This may give the appearance of restricting
competition and suggest that other manufacturers’ products are at
a disadvantage and may not be accepted. If the PHA specifies a
brand name cabinet, the essential key elements or features of the
product should be stated. For example, if specifying kitchen
cabinets with the key features of solid wood doors and plywood
frames, then many available brands and styles of cabinets will
meet the key criteria. Therefore, all of these brands should be
acceptable.
E. Contractor-Developed Specifications (24 CFR 85.36(c)(1)(iv)). In
order to ensure objective contractor performance and eliminate
unfair competitive advantage, contractors funded to develop or
draft specifications, requirements, statements of work,
invitations for bid, or requests for proposals shall be excluded
from competing in the procurement. The only exception to this rule
is if, prior to the solicitation, all respondents to solicitations
are provided with materials and information made available to the
contractor involved in matters pertinent to the solicitation.
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9.4 Statement of Work (SOW)
A statement or scope of work SOW is normally used for contracts for services, such as
accounting or payroll services, energy audits, consultant, legal or A/E services, as
well as non-professional services such as maintenance and grounds keeping.
A. Purpose and Functions of the SOW. The primary purpose of a SOW is
to provide a basis for mutual understanding between the PHA’s
Contracting Officer and the offeror and subsequent contractor of
the PHA’s requirements.
1. The adequacy and detail of the SOW may affect the number
of offerors who are willing and able to respond. If the
SOW is not specific enough, some may not respond, either
because of uncertainty about the risks involved or
because they may not understand the relationship of the
requirement to their own particular capabilities.
2. The clarity and specific detail of the requirements
presented in the SOW directly relate to the amount of the
offer and the quality of the proposals submitted.
3. Under the competitive proposals method, the SOW
establishes conclusive baseline tasks that are the
foundation for sound evaluation criteria. The SOW plays
a significant role in the proposal evaluation and
contractor selection process.
4. The SOW also becomes the standard for measuring contractor
performance. When a question arises over an apparent
increase in the scope of the work to be performed, the SOW
is the baseline document for resolving the question.
Negotiation of cost and schedule modifications will be
impaired, if not rendered impossible, if the SOW is not
definitive in these areas. (Alternately, some
solicitations may include the actual contract, which is
summarized or referenced in the statement of work.)
B. Elements of the SOW. The particular issues to be addressed in a
SOW will vary with the nature, purpose, size, and complexity of
the work. At a minimum, every SOW should include:
1. Detailed work and task requirements;
2. End results and deliverables, including the criteria which
a deliverable must meet to be considered acceptable;
3. Delivery schedules/period of performance;
4. Any reporting and compliance requirements;
5. A precise statement of the objectives;
6. Contact information for PHA contact person/contract
administrator; and
Other special considerations (warranties, personnel and required classifications,
testing procedures, procedural safeguards, etc.).
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