[Federal Register Volume 75, Number 72 (Thursday, April 15, 2010)]
[Notices]
[Page 19661]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-8641]


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OFFICE OF MANAGEMENT AND BUDGET


Determination of Benchmark Compensation Amount for Certain 
Executives

AGENCY: Office of Federal Procurement Policy, OMB.

ACTION: Notice.

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SUMMARY: The Office of Management and Budget is publishing the attached 
memorandum to the Heads of Executive Departments and Agencies 
concerning the determination of the benchmark compensation amount for 
certain executives that will be allowable under Government contracts 
during contractors' Fiscal Year 2010--$693,951. This determination is 
required under Section 39 of the Office of Federal Procurement Policy 
Act, 41 U.S.C. 435, as amended. The benchmark compensation amount 
applies equally to both defense and civilian procurement agencies.

FOR FURTHER INFORMATION CONTACT: Raymond Wong, Office of Federal 
Procurement Policy, Office of Management and Budget, telephone at 202-
395-6805 and e-mail: rwong@omb.eop.gov.

Daniel I. Gordon,
Administrator, Office of Federal Procurement Policy.

Memorandum for the Heads of Executive Departments and Agencies

    From: Daniel I. Gordon, Administrator, Office of Federal 
Procurement Policy.
    Subject: Determination of Benchmark Compensation Amount for Certain 
Executives, Pursuant to Section 39 of the Office of Federal Procurement 
Policy Act, 41 U.S.C. 435, as amended.
    This memorandum sets forth the benchmark compensation amount for 
certain executives as required by Section 39 of the Office of Federal 
Procurement Policy (OFPP) Act, as amended. Under Section 39, the 
benchmark compensation amount for certain executives 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 benchmark amount for certain 
executives established by Section 39 limits the allowability of 
compensation costs under Government contracts as implemented at FAR 
31.205-6(p), limiting the amount of reimbursable executive 
compensation. The benchmark compensation amount for certain executives 
does not limit the compensation that an executive may otherwise 
receive. This amount is based upon a review of commercially available 
surveys of executive compensation that analyze the relevant data made 
available by the Securities and Exchange Commission. More specifically, 
as required by Section 39 of the OFPP Act, the determination is made on 
the median (50th percentile) amount of compensation over a recent 12-
month period for the five most highly compensated employees in 
management positions at each home office and each segment of all 
publicly-owned companies with annual sales over $50 million. 
Compensation for the fiscal year means the total amount of wages, 
salary, bonuses and deferred compensation for the year, whether paid, 
earned, or otherwise accruing, as recorded in the employer's cost 
accounting records for the year. After consultation with the Director 
of the Defense Contract Audit Agency, we have determined pursuant to 
the requirements of Section 39 that the benchmark compensation amount 
for certain executives for the contractors' Fiscal Year (FY) 2010 is 
$693,951. This amount is for contractors' FY 2010 and subsequent 
contractor fiscal years, unless and until revised by OFPP. The 
benchmark compensation amount for certain executives applies to 
contract costs incurred after January 1, 2010, under covered contracts 
of both the defense and civilian procurement agencies as specified in 
Section 39 of the OFPP Act, 41 U.S.C. 435, as amended.
    Questions concerning this memorandum may be addressed to Raymond 
Wong, OFPP, at 202-395-6805.

[FR Doc. 2010-8641 Filed 4-14-10; 8:45 am]
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