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The statement of work (SOW) is a crucial document that helps potential contractors understand the needs of the government or customer and the work that needs to be done. It defines all work performance requirements, aids in proposal preparation, and assists in contract administration and source selection. The SOW should specify the work to be done in clear terms, serving as a key document for defining responsibilities for both parties. Developing a SOW requires an understanding of the goods or services needed to satisfy specific requirements.