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091162 1 (1970-01-01)

handle is hein.gao/gaobadupg0001 and id is 1 raw text is: 


CONTRACTING FOR PERSONAL SERVICES


Legal Considerations in Contracting
for Personal Services            7.:2(4. P

By Edwin J. Monma
            This artkle Is Intended to provide guidelnes for evluat.
            Ing the relationship between the Government and the
            employees of service-type eonctlors in couneclon with
            possible violations of the civil service laws In conracts
            for personal services.


  During the past few years the policies
and practices of Government agencies
in the field of contracting for the per-
formance of personal services have
received the critical attention of the
General Accounting Office (GAO), the
Civil Service Commission (CSC), and
several committees of the Congress.'
Much of the GAO work in that regard
has been concerned with the compara-
tive cost of contractor v. in-house
performance. Such cost evaluations are
of prime importance when the pro-
curement of the services by the contract
involved is authorized by law. There
are, however, certain legal principles
under which the propriety of contracts
for services must be determined.

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  CSC is responsible for the adminis-
tration and enforcement of the civil
service laws, rules and regulations, and
the pay provisions applicable to the
single largest group, General Schedule
(GS), of Federal employees. (5 U.S.C.
1104(a) (5); id. 1301; id. 1302; id.
3301; id. 3302; id. 5102; id. 5103; id.
5331.) Therefore, GAO has coordinated
its actions with CSC or consulted with
CSC prior to final actions taken by
GAO on service contracts which ap-
peared to be in violation of such pro-
visions of law, rules, and regulations.
CSC has studied the legal aspects of this
problem and In opinions of its General
Counsel certain specific contracts and
the general rules of law applicable have
been discussed and applied. GAO Is the
agency vested with enforcement powers
under its authority to disallow pay-
ments made pursuant to contracts which
have been found to be illegal. (See 5
Comp. Gen. 450.)


Mr. Moasma received a J.D. degree from the Law School, George Washington
University, In 19S6. lie has been employed as an attorney In the Office of the General
Counsel since 1958, and In 1967 he received a Meritorious Service Award.


       Personal Services
          Some confusion in the application
       of the rules set by GAO and the prin.
       ciples enunciated by CSC has resulted
       from the fact that the term personal
       services has been given various mean.
t      Ings and connotations.
         The term personal services as used
*      in early, decisions of the Comptroller
       General Included all services normally
       performed by Government employees
       and all services which could be per.
       formed by incumbents of existing civil
       service positions. It was held in those
 *     decisions that Government agencies
       were not authorized to contract for the
       performance of such services. It was
       considered that those services should
       not be performed by contractors that
       could not be held personally responsible
       for failure or misfeasance in the per.
       formance of such duties. The format
       and operation of the contract, whether
       on a job or end-product basis or
       under conditions clearly suggesting an
       employer.employee relationship, were
       not stressed. (See 6 Comp. Gen. 140;
       id. 364; id. 474. See also 32 Comp.
       Gen. 427; Turei v. Delaney, 32 NE 2d
       774 (New York, 1941).)
         More recently it has been emphasized
       that services normally performed by
       Government personnel may be per.
       formed under a proper contract with a
       Government agency If that method of
       procurement is shown to he more feas.
       ible, more economical, or necessary to
       the accomplishment of the agency's
       task. Inherent in this modification of
       the prior strict rule was the require-
       ment that the contract be so worded and
       carried out In a manner so as not to be
       tainted with an employer.employee re-


lationship. (31 Comp. Gen. 372; id.
510; 33 id. 143; 44 id. 761.) Also In-
herent n that modification was the re-
striction that the services Involved in
any contract were services which culd
properly be delegated to non-Govern.
ment personnel
   The recent examinations of contracts
 which have been performed by CSC
 were concerned with the lack of legal
 authority on the part of Government
 agencies to secure personal services by
 contract with a firm In lieu of securing
 such services under the provisions of
 the civil service laws. Basically, the
 position taken by CSC Is that, Ii the
 terms of the contract permit or require
 detailed Government supervision over
 the contractor's employees or the man.
 nr in which the services are performed
 under the contract leads to the same
 result, the contract must be questioned
 on a legal basis. Contracts for serv-
 ice which are in fact performed under
 detailed Government supervision and
 control have been referred to as con-
 tracts which are performed on a per.
 sonal service basis or more loosely as
 personal service contracts.
 The various uses of the term per-
 sonal services have caused some mis.
 understanding with regard to the legal
 conclusions of GAO and CSC. It should
 be clearly understood that the legality
 of contracts for services which are to
 be performed on a nonpersonal service
 or independent contractor basis has not
 been questioned even though the serv-
 Ices Involved may be performed by an
 individual contractor himself or may be
 services normally performed by Gov-
ernment employees. (See 43 Comp. Gen.
390; 28 id. 296; id. 50; 26 id. 442; id.
le8.)

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