Professional employee compensation under the Federal Acquisition Regulation
Issue 19-12 (November 2019) of “Briefing Papers” has published my article entitled “Professional Employee Compensation Under FAR 52.222-46." Published monthly by Thomson Reuters, “Briefing Papers” provides advice and guidelines on topics about contracting with the Federal Government.
Section 52.222-46 of the Federal Acquisition Regulation (FAR) requires that professional employees be compensated fairly and properly. When FAR 52.222-46 is included in a solicitation, offeror proposals must include a total compensation plan for professional employees who will provide the services under the contract. The plan must not only include information about salaries, but also about fringe benefits.
This FAR section serves several purposes. It helps the Government evaluate whether offerors will obtain and keep the quality personnel needed for adequately performing work under the contract. It also helps the Government evaluate whether the offerors understand the nature of the work required by the solicitation. Finally, it prevents offerors from proposing low salaries that destabilize the workforce, a situation that can result in poor contract performance.
The 20-page article provides many other insights into how to comply with this requirement, both from the point of view of the offerors and the procuring agencies. The article concludes with six guidelines to assist readers who must comply with this section of the FAR.