What is the intent of “Personal Services Contracts” as outlined in FAR?

The intent of “Personal Services Contracts” according to the Federal Acquisition Regulation (FAR) is fundamentally to create contracts that establish an employer-employee relationship. This type of contract typically involves the government directly directing and controlling the work of the individual hired, similar to an employee working for a typical employer.

This is essential because such contracts carry specific implications for both the agency and the contractor, including compliance with regulations that govern employment relationships. The government must recognize the challenges and responsibilities of managing individuals under personal services contracts, including considerations around labor laws, benefits, and employee rights.

In contrast, options related to performance-based services, flexibility in hiring methods, or simply ensuring compliance with federal labor laws do not accurately capture the primary goal of personal services contracts, which focus directly on establishing that employer-employee dynamic in a contract framework. Understanding this distinction helps clear up how personal services differ from other types of contractor agreements that do not create the same level of control or relationship as traditional employer-employee settings.