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Hello fellow professionals, I am looking for assistance on the "applicability" of provision 52.222-46 Evaluation of Compensation for Professional Employees. The first thing I did was look at the matrix which says for Fix Price Services (this is the scenario we will use here) it is "Required when Applicable" (A) as prescribed in FAR Part 22.1103. FAR Part 22.1103 says "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 service contracts".

My understanding is that for procurements being re-competed for professional services (this is the scenario we will use here) to establish a new contract "C" or "D" under FAR Part 15 it is required. When using FAR Part 16.505 the notice of fair Opportunity the order CO is not in the business of evaluating "cost elements" for such requirements. Further, negotiated procedures is under  FAR Part 15 and those procedures for soliciting a re-competed "C" or "D" type of acquisition vehicle. In short, the debate in my office is if establishing a FAR Part 15 "C" or "D" type vehicle being re-competed if the provision is applicable, and under FAR Part 16 is the clause N/A.

Is there a definite use when the provision is applicable (and is not) for this type of acquisition under these FAR parts? 

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@C Culham, thank you for the reference, there was good conversation in there. I could not tell if the provision is intended for commercial or non-commercial. There are plenty of professional services that are commercial where someone could think this provision may be applicable. Is the provision applicable for fixed price (commercial) services when the majority of the work is for bona fide professional employees at the IDIQ (over $700K)?

@Don Mansfield, clause was a faux pas on my part and I made the edits in the post to correct it to reflect provision (thanks). Is the provision applicable for fixed price (commercial) services when the majority of the work is for bona fide professional employees at the IDIQ (over $700K)?

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2 hours ago, Ray L. Savoy said:

Is the provision applicable for fixed price (commercial) services when the majority of the work is for bona fide professional employees at the IDIQ (over $700K)?

No. See FAR 12.301(d).

"Faux pas"

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This provision is really for the governments benefit and not a got ya clause for contractors like the SCA.  It aids in proposal evaluations, provides assurances that an offeror is able to recruit and retain competent employees, and helps identifies performance risks.  Even the prescription says implies latitude when it says Its used when meaningful numbers of professional employees will be used.  
 

You wouldn’t need it for commercial type services and you don’t want contractors to incur major expenses in supplying it.  That’s why the threshold is $700K.

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