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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 2000 is $353,010. This benchmark compensation amount
is to be used for contractor fiscal year 2000, and subsequent contractor
fiscal years, unless and until revised by OFPP. This benchmark compensation
amount applies to contract costs incurred after January 1,
2000, 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.
