Subpart 22.11
Professional Employee Compensation
FAR Subpart 22.11 requires contractors to propose and maintain fair, industry-standard compensation for professional employees to ensure contract performance and workforce stability.
Overview
FAR Subpart 22.11 establishes requirements for evaluating and ensuring fair compensation for professional employees working on government contracts. Its primary purpose is to prevent contractors from underpaying professional staff, which could lead to poor contract performance or labor disputes. The subpart outlines when these requirements apply, defines key terms, and details the procedures contracting officers and contractors must follow, including the use of a specific solicitation provision. This ensures that contractors propose and maintain compensation plans that reflect industry standards and promote stable, qualified workforces.
Key Rules
- Applicability (22.1101)
- The subpart applies to contracts requiring professional services, typically negotiated contracts above the simplified acquisition threshold, except for certain exemptions.
- Definition (22.1102)
- Provides the definition of "professional employee" as used in this context, generally referencing the Fair Labor Standards Act (FLSA) and related regulations.
- Policy, Procedures, and Solicitation Provision (22.1103)
- Contracting officers must ensure that solicitations and contracts include the provision at 52.222-46, requiring offerors to submit detailed professional compensation plans for evaluation.
Responsibilities
- Contracting Officers: Must include the appropriate solicitation provision, evaluate compensation plans, and ensure compliance with policy.
- Contractors: Must prepare and submit professional employee compensation plans that meet or exceed industry standards and comply with solicitation requirements.
- Agencies: Oversee implementation and ensure that compensation practices support contract performance and labor stability.
Practical Implications
- This subpart exists to prevent lowballing of professional salaries, which can harm contract performance and workforce stability.
- Contractors must be prepared to justify their compensation practices and may face increased scrutiny during proposal evaluations.
- Common pitfalls include failing to submit a compliant compensation plan or proposing below-market salaries, risking proposal rejection or contract issues.