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The Statement of Work (SOW) is a document that outlines the needs of the government or customer and the work to be done by a contractor. It defines all work performance requirements, aids in proposal preparation, and assists in contract administration. The SOW specifies the work to be done in clear terms for both parties, guiding the development of goods or services provided by the contractor. It is a key document in defining responsibilities and requires an understanding of the needed goods or services.