The government buys lots of services…but not all service contracts work the same way. There are personal services, non-personal services, Service Contract services, advisory services, and so on. We have a whole podcast playlist just for service contracts.

One common type of services is Professional Services. These services are defined as having a “recognized status based upon acquiring professional knowledge through prolonged study.” In other words, these are skilled services that require expertise, education, and/or time to master. The level of expertise, education and time can impact how much a “professional” is paid for said services. How then does the government know what a reasonable rate is for these services?

Enter: The Evaluation of Compensation for Professional Employees (52.222-46).

This clause is critical for evaluating professional services. As the government continues to rely on professional expertise of contractors, both government and industry need to understand the requirement for, and application of, this clause. In this episode, Kevin is joined by Joe Luetke from Skyway to explain the why, how and what of the Professional Compensation clause.