Subpart 37.4
Nonpersonal Health Care Services
FAR Subpart 37.4 ensures that contracts for health care services remain nonpersonal, preventing contractor personnel from being treated as government employees.
Overview
FAR Subpart 37.4 addresses the acquisition of nonpersonal health care services by the federal government. Its primary purpose is to ensure that contracts for health care services do not create an employer-employee relationship between the government and the contractor’s personnel. The subpart outlines policies, responsibilities of contracting officers, and the required contract clause to maintain the nonpersonal nature of these services.
Key Rules
- Scope of Subpart (37.400)
- Applies to contracts for health care services where the contractor’s personnel are not considered government employees.
- Policy (37.401)
- Contracts must be structured to avoid the appearance or reality of a personal services relationship. The government should not exercise supervision or control over contractor employees.
- Contracting Officer Responsibilities (37.402)
- Contracting officers must ensure contract terms and administration do not create an employer-employee relationship and must include the appropriate clause in solicitations and contracts.
- Contract Clause (37.403)
- Requires inclusion of a specific clause that clarifies the nonpersonal nature of the health care services and the status of contractor personnel.
Responsibilities
- Contracting Officers: Structure contracts to avoid personal services, include required clauses, and monitor contract administration for compliance.
- Contractors: Ensure their personnel remain under contractor supervision and do not act as government employees.
- Agencies: Oversee contract execution to prevent the formation of personal services relationships.
Practical Implications
- This subpart exists to protect both the government and contractors from unintended employment relationships, which can have legal and financial consequences. It impacts daily contracting by requiring careful drafting, administration, and oversight of health care service contracts. Common pitfalls include improper supervision of contractor personnel or failure to include the required contract clause.