Terms of Reference(TOR)
A document defining the purpose, scope, objectives, and deliverables of a project, study, or advisory engagement.
Overview
Terms of Reference (TOR) is a document that establishes the purpose, scope, membership, authority, and expected deliverables for a project, committee, study, or advisory engagement. In government contracting, TORs are frequently used for advisory boards, program reviews, and international development projects to define what is expected and how success will be measured.
Why It Matters in GovCon
TORs provide the framework for many consulting, advisory, and international development engagements. Contractors responding to solicitations that reference a TOR must align their proposals precisely with its defined scope and deliverables. Misunderstanding the TOR can lead to non-responsive proposals.
Key Details
- Common Elements: Includes background, objectives, scope, methodology, deliverables, timeline, and reporting requirements.
- International Use: TORs are extensively used by USAID, World Bank, and UN agencies for development projects.
- Advisory Boards: Federal advisory committees operate under TORs that define their charter and operating procedures.
- Flexibility: TORs can be updated as project needs evolve, with appropriate approval from stakeholders.
- Distinction from SOW: While similar, TORs tend to be higher-level and more outcome-focused than Statements of Work.
Related Terms
- Statement of Work (SOW)
- Performance Work Statement (PWS)
- Statement of Objectives (SOO)
- Project Management Plan
More Management Terms
A project management methodology that integrates scope, schedule, and cost data to measure project performance and progress objectively.
The government's plan for monitoring and evaluating contractor performance against the standards defined in the contract.
Integrated software systems that manage business processes such as finance, procurement, HR, and project management.
The 12-month period used by the government for budgeting and appropriations; the federal fiscal year runs October 1–September 30.
A measurable value used to evaluate how effectively a contractor or program is achieving strategic objectives and contract requirements.
The PMI-published guide that defines best practices and processes for project management, widely referenced in government contract management.
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