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Search Tags: contractor pay cap
Reducing the contractor compensation cap to the level of the salary drawn by the President ($400,000) or the Vice President ($230,700), as suggested by some lawmakers and the White House in the past, would dramatically increase the number of employees who earn compensation above the allowable limits GAO said. But the changes would mostly affect large companies, auditors said, because few of the small companies it surveyed pay their employees more than the amount earned by the President and Vice President.
The Obama administration has called on Congress to cap government-reimbursed contractor compensation at $400,000, a move that the head of the Office of Federal Procurement Policy said would save hundreds of millions of dollars. Joe Jordan, the OFPP administrator, said the White House would send proposed legislation to Congress next week.
The Senate approved a $631 billion annual defense policy Tuesday that would require the Defense Department to reduce its civilian workforce by 5 percent over the next five years and impose a strict cap on government-funded contractor salaries. With the White House threatening to veto the Senate version its current form, the bill now heads to a House-Senate conference committee where differences between the two chambers' bill will be hammered out.
Congress has cleared the way for a $633 billion defense policy bill that includes mandated reductions to the Defense Department's civilian and contractor workforces. Leaders of a House-Senate conference committee, tasked with reconciling competing versions of the 2013 National Defense Authorization Act, included in the final report the automatic workforce reductions that opponents say would result in about 36,000 job losses.
A collection of federal unions and watchdogs groups wrote to the House and Senate Armed Services Committee urging support for a law capping taxpayer-funded contracting compensation costs at $230, 700 — the maximum salary earned by the highest-paid federal employees.