22.1103 Policy, procedures, and solicitation provision
Source: FAR 22.1103 on acquisition.gov
Offerors must submit a realistic, well-supported compensation plan for professional employees in large negotiated service contracts, or risk adverse evaluation.
Overview
FAR 22.1103 establishes the policy and procedures for ensuring fair compensation of professional employees in certain government contracts. It mandates that contracting officers include the provision at FAR 52.222-46 in solicitations for negotiated contracts expected to exceed $900,000 where significant numbers of professional employees will be required. This provision obligates offerors to submit a detailed total compensation plan, including proposed salaries and fringe benefits, supported by recognized compensation data. The government will evaluate these plans, and those proposing unrealistically low compensation may be rated less favorably during source selection. The goal is to promote fair treatment of professional employees and ensure contract performance is not compromised by inadequate compensation.
All professional employees shall be compensated fairly and properly. Accordingly, the contracting officer shall insert the provision at 52.222-46, Evaluation of Compensation for Professional Employees, in solicitations for negotiated contracts when the contract amount is expected to exceed $900,000 and services are to be provided which will require meaningful numbers of professional employees. This provision requires that offerors submit for evaluation a total compensation plan setting forth proposed salaries and fringe benefits for professional employees working on the contract. 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. Plans indicating unrealistically low professional employee compensation may be assessed adversely as one of the factors considered in making an award.