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TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED MATTERS Subtitle E—Other Matters |
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P. L. 112- |
House Conference Report 112-705 |
SEC. 864. REPORT ON ALLOWABLE COSTS OF COMPENSATION OF CONTRACTOR EMPLOYEES.(a) Report Required- Not later than 120 days after the date of the enactment of this Act, the Comptroller General of the United States shall submit to Congress a report on the effect of reducing the allowable costs of contractor compensation of employees to the amount payable to the President under section 102 of title 3, United States Code, or to the amount payable to the Vice President under section 104 of such title. (b) Matters Covered- The report shall include, at a minimum, the following: (1) An estimate of the total number of contractor employees whose allowable costs of compensation in each of fiscal years 2010, 2011, and 2012 would have exceeded the amount of allowable costs under section 2324(e)(1)(P) of title 10, United States Code. (2) An estimate of the total number of contractor employees whose allowable costs of compensation in each of fiscal years 2010, 2011, and 2012 exceeded the amount payable to the President under section 102 of title 3, United States Code. (3) An estimate of the total number of contractor employees whose allowable costs of compensation in fiscal year 2012 exceeded the amount payable to the Vice President under section 104 of title 3, United States Code. (4) An estimate of the total number of contractor employees in fiscal year 2012 that could have been characterized as falling within a narrowly targeted exception established by the Secretary of Defense under section 2324(e)(1)(P) of title 10, United States Code, as a result of the amendment made by section 803(a)(2) of the National Defense Authorization Act for Fiscal Year 2012 (Public Law 112-81; 125 Stat. 1485). (5) A description of the duties and services performed in fiscal year 2012 by employees who were characterized by their employers as falling within a narrowly targeted exception described in paragraph (4). (6) An assessment of whether the compensation amounts provided in fiscal year 2012 to employees who were characterized by their employers as falling within a narrowly targeted exception described in paragraph (4) were provided in a manner consistent with private sector practice. (7) An assessment of the extent to which contractor employees received compensation in the form of vested or unvested stock options. (8) An assessment of the potential impact on the Department of Defense, contractors of the Department of Defense, and employees of such contractors of adjusting the amount of allowable costs of contractor compensation to the amount specified in paragraph (2) or the amount specified in paragraph (3). (9) Such recommendations as the Comptroller General considers appropriate. |
Report on allowable costs of
compensation of contractor employees (sec. 864) The Senate amendment contained a provision (sec. 842) that would reduce the limitation on allowable compensation for defense contractor employees from the median amount of compensation provided to senior executives in large United States corporations (currently $763,000) to the maximum level of compensation for federal employees, which is set at the annual salary of the Vice President of the United States (currently $230,700). The provision would also require a report by the Department of Defense Inspector General on allowable costs of employee compensation. The House bill contained no similar provision. The House recedes with an amendment that would require a report by the Comptroller General on allowable costs of employee compensation. The conferees conclude that Congress should have the benefit of this review before mandating a new or revised cap on such compensation. |
Senate Report 112-173 |
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Maximum amount of allowable costs of
compensation of contractor employees (sec. 842)
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