Questions and Answers

5) (a) Is the contract awardee covered under TESA status? (b) Do German taxes have to be paid? (c) Does the contractor have to pay high school or middle school tuition for their dependents?

(a) To expand upon answer 2(a) previously provided, Technical Expert status allows contractors to work in Germany without obtaining a visa or work permit in Germany.

The German Government makes the sole determination as to whether a contractor merits TESA status. Currently, the German Government has maintained that Marshall Center contractors would not be considered “Technical Experts”. So, as stated in answer 2(a), it is correct that the contractor for this requirement will not be covered under TESA status.

(b) See answer 2(b) previously posted for information on German taxes. – “(b) The potential contractors are expected to do their own research on the German law that deals with whether or not German taxes have to paid”. While the contractor is responsible for being aware of the current German laws, it is fair to anticipate a requirement to pay German taxes and to include them as a cost factor in the quoted price.

(c) Contractors are eligible to use the local Department of Defense Dependent School System (K-8) but must pay tuition. High school education is available at the Munich International School, about 90 minutes’ drive away, on a tuition basis. German schooling is available locally for all grades without tuition. Contractors may include the tuition as a cost in their price quote. The Government will evaluate all quoted prices for reasonableness as part of the award decision.