PSC R497

Overview

The Product Service Code (PSC) system is the federal taxonomy used to classify goods and services procured by the U.S. Government for consistent tracking, analysis, and reporting in acquisition systems such as FPDS and SAM. PSCs support reporting requirements, inventorying service contracts, and program oversight; PSC lists and governance are maintained within federal acquisition guidance and agency inventories to support transparency and consistent data collection across agencies¹.

PSC R497 — Support—Professional: Personal Services Contracts — is the reporting code agencies assign in FPDS and other procurement records when a requirement is identified as a personal‑service type acquisition under applicable law and agency policy. Use of the PSC indicates classification for reporting and inventory purposes and does not itself authorize a personal services award without statutory or delegated authority².

See also on G2X:

• PSC R497
• PSC R499
• PSC R425

What this PSC covers

• Employer‑employee–type service arrangements where contract terms or administration create an employer‑employee relationship³.
• Contracts perceived to create Government direction or supervision of contractor personnel³.
• Services that require specific statutory authority or other agency authorization to be procured as personal services³.
• Assignments where contractor personnel perform on Government sites using Government‑furnished tools or equipment in ways that resemble direct Government control³.
• Recurring or long‑duration functions that closely resemble civil‑service duties and therefore may be treated as personal services³.

Related NAICS and PSC codes

Common NAICS observed on federal award records paired with PSC R497 are reported in FPDS and related data tools; examples include the following⁴.

Contracting considerations

• Agencies must determine whether a proposed acquisition would create an employer‑employee relationship; personal services contracts are permitted only when specifically authorized by statute or other legal authority, and awards must comply with applicable restrictions and approvals³.
• Contract language, supervision, and administration should be structured to avoid converting a nonpersonal service into a personal service under FAR guidance; contracting officers should document determinations and obtain legal review when doubt exists³.

Reporting and the service‑contract inventory

PSC data and associated NAICS are captured in FPDS and used by agencies for Service Contract Inventory submissions and other reporting obligations. R‑series service PSCs, including R497, are subject to agency inventory rules and reporting procedures described in guidance and data‑dictionary resources used by FPDS and agency reporting systems⁴. Agency‑level instructions and DoD/IAE guidance can add implementation detail for reporting and classification⁵.

Frequently asked questions

• Q: What legally distinguishes a personal services contract from other service contracts?
  A: A personal services contract is characterized by terms or administration that create an employer‑employee relationship; such contracts generally require statutory authorization and restrict Government direction and supervision beyond that appropriate for a contractor relationship³.

• Q: Is PSC R497 a prohibition on awarding the work?
  A: No. PSC R497 is a reporting and classification code. The PSC flags the award as personal‑service in reporting systems, but award of a personal services contract is restricted unless specific statutory or delegated authority exists².

• Q: Which acquisition officials must review a proposed personal services award?
  A: The contracting officer must determine whether the acquisition is personal or nonpersonal, seek legal counsel review when appropriate, and document the file in accordance with FAR and agency procedures before awarding a personal services contract³.

• Q: How does R497 appear in procurement data alongside NAICS?
  A: FPDS and agency reporting collect both PSC and principal NAICS for each award; records commonly pair R497 with professional and administrative NAICS when award descriptions and duties match the PSC descriptor, per FPDS data‑dictionary conventions⁴.

Useful resources

• PSC R497 (G2X listing)
• FAR Part 37 — Service Contracting (see policy on personal services and contract administration)
• HHS Service Contract Inventory (example inventory listing that includes R‑series PSCs)
• FPDS‑NG Data Dictionary (Product/Service Code collection and reporting rules)

References

1. https://www.acquisition.gov/Acquisition_Systems
2. https://www.hhs.gov/grants-contracts/contracts/get-ready-to-do-business/fy2015-service-contract-inventory-analysis-report/index.html
3. https://www.acquisition.gov/far/part-37
4. https://www.fpds.gov/wiki/index.php/V1.4_FPDS-NG_Data_Dictionary
5. https://www.acquisition.gov/dfarspgi/pgi-part-204-administrative-and-information-matters