With reference to the reemployment restriction, what is a personal services contract?
According to the Federal Acquisition Regulation (FAR), Subpart 37.104(a), a personal services contract is characterized by the employer-employee relationship it creates between the Government and the contractors personnel. As specified in Subpart 37.104(b), agencies shall not award personal services contracts unless specifically authorized by statute (e.g., 5 U.S.C. 3109). The key question which must be asked in making a determination as to whether or not a contract is for personal services is: Will the Government exercise relatively continuous supervision and control over the contractor personnel performing the contract? It is critical to note that each contract arrangement must be judged in the light of its own facts and circumstances (FAR, Subpart 37.104(C)(2)). Agencies should seek further guidance from their General Counsel’s office when considering whether a former Federal employee who has taken a buyout is engaged in an arrangement, which constitutes a personal services contract
