52.222-46 Evaluation of Compensation for Professional Employees.pdf
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This document is a Federal Acquisition Regulation (FAR) provision (52.222-46) addressing the evaluation of compensation for professional employees in service contract proposals. The provision requires offerors to submit a comprehensive total compensation plan for professional employees, which the government will evaluate to ensure a sound management approach and understanding of contract requirements. The compensation plan must detail salaries and fringe benefits, taking into account factors such as skills complexity, job difficulty, and the ability to recruit and retain qualified personnel.
The government emphasizes that lowering compensation from predecessor contracts may negatively impact work quality and continuity. Proposals with unrealistically low compensation levels may be viewed as evidence of poor management understanding of contract complexity. The provision warns that failure to comply with these compensation guidelines may result in proposal rejection, highlighting the critical importance of proposing competitive and realistic compensation structures that can maintain high-quality professional services.
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52.222-46Evaluation of Compensation for Professional Employees.
As prescribed in 22.1103 , insert the following provision:
Evaluation of Compensation for Professional Employees (Feb 1993)
(a) Recompetition of service contracts may in some cases result in lowering the compensation (salaries and fringe benefits) paid or furnished professional employees. This lowering can be detrimental in obtaining the quality of professional services needed for adequate contract performance. It is therefore in the Government’s best interest that professional employees, as defined in 29 CFR 541, be properly and fairly compensated. As part of their proposals, offerors will submit a total compensation plan setting forth salaries and fringe benefits proposed for the professional employees who will work under the contract. The Government will evaluate the plan to assure that it reflects a sound management approach and understanding of the contract requirements. This evaluation will include an assessment of the offeror’s ability to provide uninterrupted high-quality work. The professional compensation proposed will be considered in terms of its impact upon recruiting and retention, its realism, and its consistency with a total plan for compensation. Supporting information will include data, such as recognized national and regional compensation surveys and studies of professional, public and private organizations, used in establishing the total compensation structure.
(b) The compensation levels proposed should reflect a clear understanding of work to be performed and should indicate the capability of the proposed compensation structure to obtain and keep suitably qualified personnel to meet mission objectives. The salary rates or ranges must take into account differences in skills, the complexity of various disciplines, and professional job difficulty. Additionally, proposals envisioning compensation levels lower than those of predecessor contractors for the same work will be evaluated on the basis of maintaining program continuity, uninterrupted high-quality work, and availability of required competent professional service employees. Offerors are cautioned that lowered compensation for essentially the same professional work may indicate lack of sound management judgment and lack of understanding of the requirement.
(c) The Government is concerned with the quality and stability of the work force to be employed on this contract. Professional compensation that is unrealistically low or not in reasonable relationship to the various job categories, since it may impair the Contractor’s ability to attract and retain competent professional service employees, may be viewed as evidence of failure to comprehend the complexity of the contract requirements.
(d) Failure to comply with these provisions may constitute sufficient cause to justify rejection of a proposal.
(End of provision) https://www.acquisition.gov/far/part-22#FAR_22_1103
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