According to Washington Technology, the Obama administration has proposed changing how the government sets limits on the reimbursement of salaries for senior executives of government contractors. The current formula for reimbursement sets the cap using a survey of general commercial compensation, but the administration wants to tie the cap to the salaries of senior federal officials which currently pays $200,000 a year.
In 2010, the Office of Federal Procurement Policy allowed reimbursements for a contractors’ top five executives to reach a total of $693,951. The Obama administration now is concerned that, based on surveys, reimbursements could reach $750,000 in 2011.
Congress will have to pass new legislation to make the change.