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The Statement of Work (SOW) is a document that helps contractors understand the needs of the government or customer and the work to be done. It outlines all work performance requirements and aids in proposal preparation, source selection, and contract administration. The SOW defines clear responsibilities for both parties and is essential for developing goods or services. It is a key document for defining the responsibilities of the government or customer and the contractor. Understanding the needed goods or services is crucial for creating a detailed SOW.