Difference between revisions of "Executive Compensation"
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Revision as of 11:31, 26 September 2013
Limitation on allowability of compensation for certain contractor personnel[1]
- (1) Senior executive compensation limit.
Applicability
(A) To all executive agencies, other than DoD, NASA and the Coast Guard, for contracts awarded before, on, or after December 31, 2011;
(B) To DoD, NASA, and the Coast Guard for contracts awarded before December 31, 2011;
- (ii) Costs incurred after January 1, 1998. For costs incurred after January 1, 1998 for the compensation of a senior executive in excess of the benchmark compensation amount determined applicable for the contractor fiscal year by the Administrator, Office of Federal Procurement Policy (OFPP), under 41 U.S.C 1127 are unallowable (10 U.S.C. 2324(e)(1)(P) and 41 U.S.C 4304(a)(16)). This limitation is the sole statutory limitation on allowable senior executive compensation costs incurred after January 1, 1998, under new or previously existing contracts. This limitation applies whether or not the affected contracts were previously subject to a statutory limitation on such costs. (Note that pursuant to section 804 of Pub. L. 105-261, the definition of “senior executive” in (p)(3) has been changed for compensation costs incurred after January 1, 1999.)
- (2) All employee compensation limit.
- (i) Applicability. This paragraph (p)(2) applies to DOD, NASA, and the Coast Guard for contracts awarded on or after December 31, 2011;
- (ii) Costs incurred after January 1, 2012. For costs incurred after January 1, 2012 for the compensation of any contractor employee in excess of the benchmark compensation amount, determined applicable for the contractor fiscal year by the Administrator, Office of Federal Procurement Policy (OFPP) under 41 U.S.C 1127 are unallowable (10 U.S.C. 2324(e)(1)(P)).
(3) Definitions. As used in this paragraph (p)—
Contractor’s Headquarters
References and Notes
- ↑ FAR 31.205-6(p)
