[Federal Register: May 26, 1999 (Volume 64, Number 101)]
[Notices]               
[Page 28529]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr26my99-148]


[[Page 28529]]

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OFFICE OF MANAGEMENT AND BUDGET

Office of Federal Procurement Policy

 
Office of Federal Procurement Policy; Determination of Executive 
Compensation Benchmark Amount Pursuant to Section 808 of Pub. L. 105-
85.

AGENCY: Office of Federal Procurement Policy, OMB.

ACTION: Notice.

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SUMMARY: The Administrator of the Office of Federal Procurement Policy 
(OFPP) is hereby publishing the attached memorandum to heads of 
agencies concerning the determination of the maximum ``benchmark'' 
compensation that will be allowable under government contracts during 
contractors' FY 1999--$342,986. This determination is required to be 
made pursuant to Section 808 of Pub. L. 105-85. It applies equally to 
both defense and civilian procurement agencies.

FOR FURTHER INFORMATION CONTACT: Richard C. Loeb, Executive Secretary, 
Cost Accounting Standards Board, OFPP, on (202) 395-3254.
Deidre A. Lee,
Administrator.

April 28, 1999.

To the Heads of Executive Departments and Agencies

Subject: Determination of Executive Compensation Benchmark Amount 
Pursuant to Section 808 of Pub. L. 105-85

    This memorandum sets forth the ``benchmark compensation amount'' 
as required by Section 39 of the Office of Federal Procurement 
Policy (OFPP) Act (41 U.S.C. 435), as amended. Under Section 39, the 
``benchmark compensation amount'' is ``the median amount of the 
compensation provided for all senior executives of all benchmark 
corporations for the most recent year for which data is available.'' 
The ``benchmark compensation amount'' established as directed by 
Section 39 limits the allowability of compensation costs under 
government contracts. The ``benchmark compensation amount'' does not 
limit the compensation that an executive may otherwise receive.
    Based on a review of commercially available surveys of executive 
compensation and after consultation with the Director of the Defense 
Contract Audit Agency, I have determined pursuant to the 
requirements of Section 39 that the benchmark compensation amount 
for contractor fiscal year 1999 is $342,986. This benchmark 
compensation amount is to be used for contractor fiscal year 1999, 
and subsequent contractor fiscal years, unless and until revised by 
OFPP. This benchmark compensation amount applies to contract costs 
incurred after January 1, 1999, under covered contracts of both the 
defense and civilian procurement agencies as specified in Section 
808 of Pub. L. 105-85.
    Questions concerning this memorandum may be addressed to Richard 
C. Loeb, Executive Secretary, Cost Accounting Standards Board, OFPP, 
on (202) 395-3254.
Deidre A. Lee,
Administrator.
[FR Doc. 99-13323 Filed 5-25-99; 8:45 am]
BILLING CODE 3110-01-P