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In this tutorial, Bert explains the importance of a Statement of Work (SOW) document in clearly defining the needs and work requirements for a contractor. The SOW helps in preparing proposals, conducting source selection, and contract administration. It defines all performance requirements for contractor effort, specifying the work to be done in developing goods or services. Both parties rely on the SOW to define their responsibilities, making it a key document in the contracting process. Understanding the needed goods or services is essential for developing an effective SOW.