Policy, procedures, and solicitation provision
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.