Use of Non-Government Instructors (Contractors)

It is IRS practice to procure the services of non-government instructors at fair and reasonable prices calculated to result in the lowest overall cost to the IRS. The authorized contracting officer determines whether a price is fair and reasonable.

When procuring non-government instructors, follow applicable contracting procedures as prescribed by procurement, at http://awss.web.irs.gov/Procurement/howto.shtml. Request for services must specify the following:

Amount of instructional time required (student contact);

Dates, times, and places instruction is to be given;

Whether pre course and post course administrative meetings are expected, and if so, what performance is required from the instructor;

Whether any reports, oral or written, are required, and if so the format and submission schedule; and

The extent and nature of any required IRS pre-course review of the proposed instruction, the nature and extent or IRS control of content and methodology, and the freedom or requirement to use or not use instructor’s own references and supplemental material.

In agreeing to a fair market value, IRS must consider the following factors:

The extent of the instructor’s reputation, personal acceptability, standing in the professional field and current professional efforts such as writings, research, and work with other internal and external groups;

The professional fee that an instructor received in the past from IRS and other organizations for the same or similar services;

The professional fee that IRS gave to others of similar competence for the same or similar services;

The comparison with other possible choices of non-government instructors for the same or similar services; and

The relationship of the asking price of the instructor to the IRS professional fee.