![]() If the contract is to provide 5 FTEs or the hours are equivalent to 5 FTS, then it would too inefficient to have a sixth person on staff just in case an employee gets pregnant and needs a couple of months off. If looking at a small population of employees, a company may not factor in some of these potential causes of lost productivity. The specific number of hours equivalent to an FTE for a particular contract can vary. I?ve seen the number used for years, but I?ve not validated whether it is still a representative average. That?s the reason that you end up with a partial day. I believe the 1980 is an average based on a large population taking into consideration all non productive time off. Not only do different companies have different policies for vacation and sick leave, there are other factors such as company specific training (non-reimbursable), jury duty, reserve duty, time off for short term disability, pregnancies, etc. The number of productive hours per FTE can vary. So depending on the requirement itself and the contractor's management approach the 2080hrs may be adjusted up or down for any particular employee. ![]() Keep in mind that contractors can choose how they manage their workforce to meet any particular requirement. Now, like you said, the 2080hrs is based on a 40hr work week. Normally this is calculated as follows:īase Hours (2080) minus Vacation Hours, Holiday Hours, Sick/Emergency Leave Hours = # of productive hours for the year. I have seen contractors propose based on Productive Hours for a particular year. I'm not sure what you mean by a Person Year. What number of hours would you use, as a general matter. I questioned the rationale of using 49.5 weeks (1980/40) as a Person Year because it not only breaks a week in half, it breaks a day in half. What is the most popular figure to classify a Person Year?Ģ080 is full time, 40 hours per week, 52 weeks per year.ġ980 is the figure that is being used in the acquisition which I am supporting.
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