Subcontractor Compensation Plan Requirement

Started by BTR2562 · Aug 23, 2022 · 5 replies

  1. B

    BTR2562

    Aug 23, 2022 · 3y ago

    Original post

    Are subcontractors required to include a compensation plan in their government cost proposals.  I only see the requirement for submission by the Prime Contractor.

  2. j

    ji20874

    Aug 23, 2022 · 3y ago

    Are you talking about the compensation plan contemplated by FAR 52.222-46, Evaluation of Compensation for Professional Employees?  Or some other plan?  Please specify the citation.

  3. B

    BTR2562

    Aug 23, 2022 · 3y ago

    I am referring to the compensation Plan contemplated by FAR 52.222-46.

  4. j

    ji20874

    Aug 23, 2022 · 3y ago

    Don't you think the prime contractor's single submission will cover all of the professional employees working under the contract, whether they are prime contractor or subcontractor employees?

  5. V

    Vern Edwards

    Aug 23, 2022 · 3y ago

    The FAR is ambiguous. FAR 22.1103 sates,. in part:

    Quote

    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 $750,000 and services are to be provided which will require meaningful numbers of professional employees...

    FAR 52.222-46 states:

    Quote

    As part of their proposals, offerors will submit a total compensation plan setting forth salaries and fringe benefits proposed for the professional employees who will work under the contract...

    Those passages could easily be interpreted to include the professional employees of subcontractors.

    If in doubt, ask the CO who issued the solicitation. Ask in writing.

  6. j

    joel hoffman

    Aug 23, 2022 · 3y ago · edited 3y ago

    Vern Edwards said:

    The FAR is ambiguous. FAR 22.1103 sates,. in part: “

    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 $750,000 and services are to be provided which will require meaningful numbers of professional employees...”

    FAR 52.222-46 states: “

    As part of their proposals, offerors will submit a total compensation plan setting forth salaries and fringe benefits proposed for the professional employees who will work under the contract...“

    Those passages could easily be interpreted to include the professional employees of subcontractors.

    If in doubt, ask the CO who issued the solicitation. Ask in writing.

    (Emphasis added.)

    A plain reading appears to me to cover all professional employees who will work on the contract, if the requirement is that all professional employees shall be compensated fairly and properly.

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