Executive Compensation Benchmark Amount Increased

An Office of Management and Budget, Office of Federal Procurement Policy, notice sets the maximum executive compensation benchmark amount allowable under government contracts for fiscal years 2013 and 2014 at $980,796 and $1,144,888, respectively. As required by Section 39 of the Office of Federal Procurement Policy Act, as amended (41 USC 1127), the benchmark compensation amount limits the allowability of compensation costs under government contracts in accordance with FAR 31.205-6(p). However, the cap does not limit the compensation an executive may otherwise receive. The benchmark compensation amount applies to both defense and civilian procurement agencies for contracts awarded before June 24, 2014. The notice includes a memorandum from the OFPP Administrator to the Heads of Executive Departments and Agencies providing additional information on this compensation cap.

About George Gullo

George Gullo is an attorney editor in the Government Contracts group at Wolters Kluwer Legal & Regulatory U.S. George serves as the principal editor of Cost Accounting Standards Guide and supports all of the group’s print and electronic publications, as well as legal research tools, including the Government Contracts Reporter, Board of Contract Appeals Decisions, and the FAR and DFARS Matrix Smart Charts. With more than 25 years experience in the legal publishing industry, including more than 15 years in the government contracts area, George also has a background in legal and business transactions. He is a graduate of DePaul University College of Law and a licensed Illinois attorney.
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