Exploring the SOW Bid Workflow

Objective

After completing this lesson, you will be able to create an SOW Bid in SAP Fieldglass.

SOW Bid

In a standard SOW project in SAP Fieldglass, the organization needing the service knows which third-party vendor they want to engage. What happens, though, when a buyer has the need to procure services but doesn't know which supplier will best fit their needs?

They can create an SOW Bid!

Using the SOW Bid functionality, buyers can bid out work to multiple suppliers. SOW Bids outline the scope of the work requested, very similar to an SOW, and multiple suppliers can review, collaborate, and respond to the SOW Bid all within the SAP Fieldglass application. This allows buyers to see the details of how each supplier would approach the project as well as their estimated costs.

It's important to note that the SOW Bid itself is non-transactional; invoices do not flow through a bid and characteristics are not marked as complete. However, transactional SOWs can be created from the SOW Bid once an organization awards a supplier the work.

SOW Bid Workflow

SOW Bids are part of the optional source phase of the services process flow.

The SOW Bid functionality is not a standalone module but rather an extension of the existing SOW module. It leverages existing SOW admin objects such as SOW Templates, SOW Types, and Classifications.

Process flow of the SOW Bid process showing the hiring manager creating the SOW Bid, the program office reviewing it, the supplier submitting a response, and the program office and hiring manager reviewing the response. Faded to the right of the bid process flow are the remaining parts of the full services process flow including the Procure, Engage, and Pay steps.

Source	The Source phase is an optional feature for SOW creation that allows organizations to send the SOW to a pool of suppliers who can then submit bid responses. The buyer can then award the contract accordingly, thereby initiating the Engage phase..
Create SOW Bid	The Hiring Manager (or Contract Manager) will create a SOW Bid detailing the services required, the number of workers, and the costs involved. It will then go to the PMO or anyone in the organization that must approve the project.
Review SOW Bid	The PMO and/or other approvers will review the SOW Bid. If changes are required, it will go back to the SOW's creator for changes. When approved, it will be sent along to appropriate suppliers.
Submit Response	The various suppliers will then review the SOW Bid and submit responses to the buyer.
Evaluate Response	The Contract Manager would evaluate the bids submitted by the suppliers and select the one that best meets the organization's needs. The approval of the SOW Bid will trigger the activation of the SOW, which would then follow the standard SOW process.

Create an SOW Bid

WorkingNet Networking, Inc., a global manufacturer of data networking equipment, is building several new distribution centers in several countries. Their first new distribution center is being built in a suburb of Atlanta, so WorkingNet will use that new Atlanta hub as their base of operations.

Patricia Protector, the director of network security for WorkingNet, has been assigned the task of ensuring proper security processes and technology is implemented in the new Atlanta shipping hub. She will need to engage with an Atlanta-based third-party vendor to help design, install, and implement the security measures.

However, she has never worked with security firms in the Atlanta area, so she decides to create an SOW BID to send out to vendors and evaluate their responses. Those responses will allow her to evaluate and chose the best vendor for the project.

Here's how Patricia creates the SOW Bid. Take notice of how the process is the same, and how it differs, from the creation of an SOW that already has a supplier engaged.

ExerciseStart Exercise

Summary

SOW Bid functionality in SAP Fieldglass allows buyers to solicit and evaluate bids from multiple suppliers for a statement of work (SOW) project. It's a preliminary stage to select the best-fit supplier before initiating a transactional SOW.

Key Points:

SOW Bid Workflow: Includes creating, reviewing, submitting, and evaluating bids, leading to awarding the contract.
Part of Services Process Flow: SOW Bids are part of the optional source phase within the broader services process flow.
Leverages Existing SOW Admin Objects: Uses SOW Templates, SOW Types, and Classifications already set up in the system.

Next lesson