98-4291. Office of Acquisition Policy; Determination of Executive Compensation Benchmark Amount Pursuant to Section 808 of the FY 1998 Defense Authorization Act

[Federal Register Volume 63, Number 35 (Monday, February 23, 1998)]
[Notices]
[Page 8981]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-4291]


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GENERAL SERVICES ADMINISTRATION


Office of Acquisition Policy; Determination of Executive 
Compensation Benchmark Amount Pursuant to Section 808 of the FY 1998 
Defense Authorization Act

AGENCY: General Services Administration (GSA).

ACTION: Notice.

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SUMMARY: The Acting Administrator of the Office of Federal Procurement 
Policy (OFPP) has requested that the General Services Administration 
publish the following notice regarding his determination pursuant to 
Section 808 of the FY 1998 Defense Authorization Act related to the 
allowability of certain personal compensation costs covered by the 
Federal Acquisition Regulation at 48 CFR 31.205-6.

FOR FURTHER INFORMATION CONTACT:
Mr. Richard C. Loeb, Executive Secretary, Cost Accounting Standards 
Board, OFPP, on [phone].

    Dated: February 13, 1998.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.

Executive Office of the President

Office of Management and Budget, Washington, D.C. 20503

February 12, 1998.

To the Heads of Executive Departments and Agencies

Subject: Determination of Executive Compensation Benchmark Amount 
Pursuant to Section 808 of the FY 1998 Defense Authorization Act, 
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 1998 is $340,650. This benchmark 
compensation amount is to be used for contractor fiscal year 1998, 
and subsequent contractor fiscal years, unless and until revised by 
OFPP. This benchmark compensation amount applies to contract costs 
incurred after January 1, 1998, under covered contracts of both the 
defense and civilian procurement agencies as specified in Section 
808 of the FY 1998 Defense Authorization Act.
    Questions concerning this memorandum may be addressed to Richard 
C. Loeb, Executive Secretary, Cost Accounting Standards Board, OFPP, 
on [phone].
Allan E. Brown,
Acting Administrator.
[FR Doc. 98-4291 Filed 2-20-98; 8:45 am]
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