Is the Government responsible for supplying this chair, or is the SETA contractor's company?
It all depends on what the original contract states. If the contract states the government will provide office furnishings to contractor personnel, then those furnishings will be what would be normally expected (quality and price) in an office setting. This does not mandate purchasing a higher quality chair for use by contractor personnel with special needs, unless a provision was set forth in the contractor's proposal and accepted or negotiated by the Government and included in the resulting contract. This does not prevent the contractor from providing a higher quality chair for their own employee in the Government space, however it would be prudent to document any changes to the work environment, such as brining in contractor furnished equipment.
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Since the employee is a contractor employee, not a government employee, it is the contractor that must meet the reasonable accommodations as the employer. The governing document is the contract and any special terms and conditions should be identified in the contract. Recommend that you also consult with your program attorney to formulate a specific response to the contractor's contracting officer and be sure to include your Government Contracting officer's Representative in the conversation so he/she clearly understands the limits of the government responsibility.