Counsel Commentary: Clause Confusion

In their article for Contract Management magazine, Stephen Bacon and Alexandria Tindall Webb delve into the complexities surrounding a specific Federal Acquisition Regulation (FAR) clause, FAR 52.222-46. This clause addresses the evaluation of compensation for professional employees involved in government contracts. Despite its intention to ensure fair compensation for professionals working on contracts exceeding $750,000, the interpretation and application of this clause have resulted in numerous bid protest decisions and disputes. They highlight the significance of comparing proposed compensation to incumbent rates, focusing on unburdened rates, and evaluating compensation for employees meeting the definition of professional employees. They also stress the importance of timely objections to solicitation inconsistencies and provide guidance for contractors and agencies to navigate the complexities associated with evaluating professional employee compensation.

For a comprehensive understanding of the ongoing debate and its implications, you can read the full article here.

This article is featured in the June 2023 edition of Contract Management magazine, a publication by the National Contract Management Association, and is shared here with permission.