NAVY SCHOOL MANAGEMENT MANUAL

performance only in terms of the finished product (delivery
of the services outlined in the contract). It is important
that the contract clearly define the job the contractor is
expected to perform, as the Navy must accept or reject the
finished product or service solely on the basis of whether
the product or service meets the contract specifications.
Contractor's Job Requirements. Job requirements for a
contractor are listed in the general job requirements
section or in the Statement of Work. When a contract is
necessary, it is critical that all requirements pertaining
to the performance of the contract be spelled out in the
contract. For example, if contract instructors are
expected to serve as members of ARBs, this must be listed
in the contract. If it is not, neither the COR nor a
training manager may require the contract instructor to
serve as members of ARBs without first requesting and
receiving modification to the contract. Because
modifications to contracts are time consuming, it is wise
to ensure that the initial contract contains a complete
list of job requirements.
Direction and Supervision of Contract Employees. Under the
laws governing contractor-furnished services, training
managers may not direct how the contractor's employees
perform their jobs, nor may they directly or indirectly
supervise their performance. Directing and supervising
contractor personnel is the responsibility of the
contractor. If the training manager directs or supervises
contractor personnel, then the contract may be perceived as
a contract for personal services. Contracts for personal
services are permitted only when specifically authorized by
statute. If the government needs services that are
directed and supervised by military personnel, the
government must employ the personnel directly, per Civil
Service laws that govern civilian hiring practices.
Questions regarding what may constitute personal services
or direct supervision should be directed to the Contracting
Officer or to your activity's legal officer.
Evaluating Finished Products versus Personal Services. The
following examples are provided to clarify the difference
between a finished product and a personal services
contract.
If the Navy contracted for cooks to work in its
galleys, a Navy contract monitor could order a steak
medium rare and accept or reject the steak when it was
served. Acceptance or rejection of the steak would be
in compliance with a finished product contract.
6-18
NAVEDTRA 135C