Contractor Compensation Cap per Statutory Formula The WhiteThe Administrator, Office of Federal Procurement Policy, (OFPP), determines the benchmark compensation amount as required by Section 39 of the OFPP Act, The reimbursement of the compensation costs for certain senior executives of the contractor are subject to the section 1127 statutory formula cap amount.
Contractor Employee Compensation Cap Overview The White HouseWithout regard to compensation cap amount, the allowable compensation costs for each affected executive or employee are still subject to the Federal Acquisition Regulation cost principles and the Cost Accounting Standards as applicable and appropriate to the circumstances, e.g., reasonableness and allocability.
Federal Acquisition Regulation: Limitation on Allowable Government30 Sep 2016 Federal Acquisition Regulation: Limitation on Allowable Government Contractor Employee Compensation Costs, 67778-67780 [2016-23204]
Is Your Executive Compensation Package Fully GovCon360Blog entitled “Ending the Overpayment of Federal Contractor Executives.” In it, he called the current executive compensation benchmark “far in excess of what can be justified” and called on Congress to. “abolish the outdated statutory formula” and tie the cap to the top salary of the Government executive pay schedule
Final rule expanding the FAR's compensation cap to all contractor11 Jun 2014 On May 30, 2014, the Federal Acquisition Regulatory Council issued a final rule expanding the FAR's executive compensation cap—which is currently set at $952,308—to all contractor employees on contracts for the Department of Defense (DoD), NASA, and the Coast Guard. The final rule adopts without
Issue Government Contractor Pay Limits and DisclosuresSince 1995, Congress has limited the ability of federal defense contractors have been limited in their ability to expense the federal government for “senior executive” compensation pursuant to a federal regulatory benchmarking limitation. For employees failing outside the definition of “senior executive”- essentially the
Should the Government Cap Executive Compensation? What Is15 Feb 2017 Should the government set or limit the compensation corporate executives receive? The short (an incomplete) answer is no. The government should not be in the position of capping or limiting the salaries of corporate executives. That is inconsistent with a free enterprise market system. However, we don't
Beware: Stock Performance Based Executive Compensation is an20 Jun 2017 These contractors must be cautious with stock performance based compensation because the Federal Acquisition Regulation (FAR) puts several restrictions on what is allowable compensation. The restriction that most frequently comes up is the FAR's own cap on allowable compensation ($487,000 as of
Contractor Compensation Ceilings for Fiscal Years 2013 and 2014The compensation cap for 2013 is set at $980,796 and for. 2014 it is $1,144,888. Until OFPP issued the most recent compensation caps, the prior cap of $952,308 for fiscal year. 2012 was used by contractors in cost submissions for the future periods. In addition, OFPP issued a memorandum describing the updated amounts
Compensation limits applicable to government contractors Date ofFAR 31.205-6(p) was revised effective June 26, 2013 to reflect this statutory change. As a result, the OFPP FY12 cap of $952,308 applies to costs incurred after January 1, 2012 by the top five executives in each home office or segment of the company, for all federal government contracts, and purports to apply all employees,
New Executive Compensation Limits Government Contracts Legal Forum27 Jun 2013 The Administrator, Office of Federal Procurement Policy, determines the executive compensation benchmark amount, which is published on the Office of Management and Budget website. The benchmark amount does not limit the amount of compensation that an executive may receive, but caps the amount
Is $487K Too Little to Pay Federal Contractors? Contracting5 Jun 2014 The federal government has finalized a plan to expand compensation reimbursement caps to a large swath of its contracted employees, drawing the ire The 2012 NDAA “explicitly states that the expanded reach of the compensation cap 'shall apply with respect to costs of compensation incurred after Jan.
Federal Register, Volume 81 Issue 190 (Friday, September 30, 2016)30 Sep 2016 One respondent stated that reading this sentence literally, the interim rule provides that all executive compensation costs are subject to the revised cap no matter when the contracts to which such costs are allocated were awarded which makes application of the rule retroactive which is inappropriate.