|
|
|
|
| HOME | CONTENTS | DISCUSSIONS | DISCUSSION ARCHIVES | BLOG | QUICK-KITs| STATES |
|
TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED MATTERS Subtitle A--Acquisition Policy and Management |
|
|
P. L. 112-81 |
House Conference Report 112-329 |
|
SEC. 803. EXTENSION OF APPLICABILITY OF THE SENIOR EXECUTIVE BENCHMARK COMPENSATION AMOUNT FOR PURPOSES OF ALLOWABLE COST LIMITATIONS UNDER DEFENSE CONTRACTS. (a) Certain Compensation Not Allowable Under Defense Contracts- Subsection (e)(1)(P) of section 2324 of title 10, United States Code, is amended-- (1) by striking `senior executives of contractors' and inserting `any contractor employee'; and (2) by adding before the period at the end the following: `, except that the Secretary of Defense may establish one or more narrowly targeted exceptions for scientists and engineers upon a determination that such exceptions are needed to ensure that the Department of Defense has continued access to needed skills and capabilities'. (b) Conforming Amendment- Subsection (l) of such section is amended by striking paragraph (5). (c) Effective Date- The amendments made by this section-- (1) shall be implemented in the Federal Acquisition Regulation within 180 days after the date of the enactment of this Act; and (2) shall apply with respect to costs of compensation incurred after January 1, 2012, under contracts entered into before, on, or after the date of the enactment of this Act. |
Extension of applicability of the senior
executive benchmark compensation amount for purposes of
allowable cost limitations under defense contracts (sec. 803)
The House bill contained a provision (sec. 803) that would expand the limitation on allowable compensation for defense contractor employees to any individual performing under a covered contract. The Senate amendment contained a provision (sec. 842) that would expand the limitation to contractor and subcontractor employees and reduce the ceiling amount to the annual amount paid to the President of the United States under section 102 of title 3, United States Code. The House recedes with an amendment that would expand the limitation to all contractor employees, subject to the authority of the Secretary of Defense to establish narrowly-targeted exceptions for scientists and engineers upon a determination that such exceptions are needed to ensure that the Department of Defense has continued access to needed skills and capabilities. The Secretary is directed to report to the congressional defense committees on whether there are any additional categories of employees for whom such authority may be needed. The conferees understand that the term `contractor employees' includes employees of a subcontractor. |
|
House Report 112-078 |
|
|
SECTION 803--EXTENSION OF APPLICABILITY OF
THE SENIOR EXECUTIVE BENCHMARK COMPENSATION AMOUNT FOR PURPOSES
OF ALLOWABLE COST LIMITATIONS UNDER DEFENSE CONTRACTS This section would amend section 2324 of title 10, United States Code, by expanding the existing executive compensation cap to apply to any individual performing on a contract rather than certain management employees. The committee is aware that the Defense Contract Audit Agency has shown that there are lower-level executives not subject to the cap and non-executive employees who receive compensation in excess of the benchmark compensation amount. The committee believes that this section would reduce the risk of excessive individual compensation charged to defense contracts. |
|
|
Extension to all management employees of
applicability of the senior executive benchmark compensation
amount for purposes of allowable cost limitations under
government contracts (sec. 842) The committee recommends a provision that would amend section 2324 of title 10, United States Code, to extend the existing cap on allowable costs for defense contractor executive compensation to apply to all contractor management employees. Under current law, the cap applies only to the five most highly-compensated management employees in each segment of the company. The committee concludes that the extension of the provision is justified to ensure that the Department is not required to reimburse defense contractors for unreasonable or excessive compensation paid to company executives. |
|
