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.
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