Federal Acquisition Regulation; Federal Acquisition Circular 2005-68; Small Entity Compliance Guide, 38537-38538 [2013-15213]
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Federal Register / Vol. 78, No. 123 / Wednesday, June 26, 2013 / Rules and Regulations
(ii) Costs incurred after January 1,
1998. For costs incurred after January 1,
1998, for the compensation of any
contractor employee in excess of the
benchmark compensation amount,
determined applicable for the contractor
fiscal year by the Administrator, Office
of Federal Procurement Policy (OFPP)
under 41 U.S.C. 1127 are unallowable
(10 U.S.C. 2324(e)(1)(P)).
(3) Definitions. As used in this
paragraph (p)—
(i) Compensation means the total
amount of wages, salary, bonuses,
deferred compensation (see paragraph
(k) of this subsection), and employer
contributions to defined contribution
pension plans (see paragraphs (j)(4) and
(q) of this subsection), for the fiscal year,
whether paid, earned, or otherwise
accruing, as recorded in the contractor’s
cost accounting records for the fiscal
year.
(ii) Senior executive means—
(A) Prior to January 2, 1999—
(1) The Chief Executive Officer (CEO)
or any individual acting in a similar
capacity at the contractor’s
headquarters;
(2) The four most highly compensated
employees in management positions at
the contractor’s headquarters, other than
the CEO; and
(3) If the contractor has intermediate
home offices or segments that report
directly to the contractor’s headquarters,
the five most highly compensated
employees in management positions at
each such intermediate home office or
segment.
(B) Effective January 2, 1999, the five
most highly compensated employees in
management positions at each home
office and each segment of the
contractor, whether or not the home
office or segment reports directly to the
contractor’s headquarters.
(iii) Fiscal year means the fiscal year
established by the contractor for
accounting purposes.
(iv) Contractor’s headquarters means
the highest organizational level from
which executive compensation costs are
allocated to Government contracts.
*
*
*
*
*.
PART 52—SOLICITATION PROVISIONS
AND CONTRACT CLAUSES
3. Amend section 52.216–7 by
revising the date of the clause and
paragraph (d)(2)(iv)(B) to read as
follows.
■
52.216–7
*
*
Allowable Cost and Payment.
*
*
*
Allowable Cost and Payment (JUNE
2013)
(d) * * *
(2) * * *
(iv) * * *
(B) General organizational information and
limitation on allowability of compensation
for certain contractor personnel. See 31.205–
6(p). Additional salary reference information
is available at https://www.whitehouse.gov/
omb/procurement_index_exec_comp/.
*
*
*
*
*
[FR Doc. 2013–15212 Filed 6–25–13; 8:45 am]
BILLING CODE 6820–EP–P
DEPARTMENT OF DEFENSE
GENERAL SERVICES
ADMINISTRATION
38537
and National Aeronautics and Space
Administration (NASA).
ACTION:
Small Entity Compliance Guide.
This document is issued
under the joint authority of DOD, GSA,
and NASA. This Small Entity
Compliance Guide has been prepared in
accordance with section 212 of the
Small Business Regulatory Enforcement
Fairness Act of 1996. It consists of a
summary of the rule appearing in
Federal Acquisition Circular (FAC)
2005–68, which amends the Federal
Acquisition Regulation (FAR). An
asterisk (*) next to a rule indicates that
a regulatory flexibility analysis has been
prepared. Interested parties may obtain
further information regarding this rule
by referring to FAC 2005–68, which
precedes this document. These
documents are also available via the
Internet at https://www.regulations.gov.
SUMMARY:
DATES:
June 26, 2013.
For
clarification of content, contact the
analyst whose name appears in the table
below. Please cite FAC 2005–68 and the
FAR case number. For information
pertaining to status or publication
schedules, contact the Regulatory
Secretariat at 202–501–4755.
FOR FURTHER INFORMATION CONTACT:
NATIONAL AERONAUTICS AND
SPACE ADMINISTRATION
48 CFR Chapter 1
[Docket FAR 2013–0078, Sequence 4]
Federal Acquisition Regulation;
Federal Acquisition Circular 2005–68;
Small Entity Compliance Guide
Department of Defense (DoD),
General Services Administration (GSA),
AGENCY:
RULE LISTED IN FAC 2005–68
Subject
FAR Case
Analyst
*Expansion of Applicability of the Senior Executive Compensation Benchmark (Interim) ........................................
2012–017
Chambers.
Summary
for the FAR rule follow. For the actual
revisions and/or amendments made by
this FAR case, refer to the specific item
number and subject set forth in the
document following this item summary.
FAC 2005–68 amends the FAR as
specified below:
TKELLEY on DSK3SPTVN1PROD with RULES3
SUPPLEMENTARY INFORMATION:
VerDate Mar<15>2010
19:23 Jun 25, 2013
Jkt 229001
Expansion of Applicability of the
Senior Executive Compensation
Benchmark (FAR Case 2012–017)
(Interim)
This interim rule amends the FAR to
implement the statutorily-expanded
reach of the limitation on the
allowability of compensation costs for
certain contractor personnel. This
limitation on the allowability of
compensation costs is an amount set
PO 00000
Frm 00005
Fmt 4701
Sfmt 4700
annually by the Office of Federal
Procurement Policy. Prior to the
enactment of section 803 of the National
Defense Authorization Act for Fiscal
Year 2012 (Pub. L. 112–81), this
limitation applied to a contractor’s five
most highly compensated employees in
management positions at each home
office and each segment of the
contractor, with respect to all contracts
subject to the FAR cost principles with
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38538
Federal Register / Vol. 78, No. 123 / Wednesday, June 26, 2013 / Rules and Regulations
TKELLEY on DSK3SPTVN1PROD with RULES3
all Federal agencies. In section 803,
Congress expanded the application of
the limitation so that it applies to all
contractor employees, rather than just
the top five executives in the case of
contracts covered by Title 10 of the
United States Code. Moreover, Congress
in section 803(c)(2) stated that this
expanded reach ‘‘shall apply with
respect to costs of compensation
incurred after January 1, 2012, under
contracts entered into before, on, or after
the date of the enactment of this Act’’
(the date of enactment was December
31, 2011). Section 803(c)(1) also
provided that this change shall be
implemented in the FAR.
This interim rule implements section
803 and provides that for DoD, NASA,
and Coast Guard contracts, the
VerDate Mar<15>2010
19:23 Jun 25, 2013
Jkt 229001
compensation limitation applies to all
contractor employees, rather than just
the top five executives. For contracts
with agencies other than DoD, NASA,
and the Coast Guard, the reach of the
limitation was not changed by section
803 and therefore will continue to be a
contractor’s five most highly
compensated employees in management
positions at each home office and each
segment of the contractor.
An analysis of data in the Federal
Procurement Data System (FPDS)
revealed that most contracts awarded to
small entities use simplified acquisition
procedures or are awarded on a
competitive, fixed-price basis, and do
not require application of the cost
principle contained in this rule.
Section 803 is being implemented in
the FAR through two rulemakings. In
PO 00000
Frm 00006
Fmt 4701
Sfmt 9990
accordance with section 803, this
interim rule applies to the
compensation costs of all contractor
employees incurred after January 1,
2012, on all DoD, NASA, and Coast
Guard contracts awarded on or after
December 31, 2011. Concurrently, DoD,
GSA, and NASA are issuing a proposed
rule (FAR Case 2012–025) to solicit
comments on the application of the
requirements of section 803 to DoD,
NASA, and Coast Guard contracts
entered into before December 31, 2011.
Dated: June 10, 2013.
Laura Auletta,
Director, Office of Governmentwide
Acquisition Policy, Office of Acquisition
Policy, Office of Governmentwide Policy.
[FR Doc. 2013–15213 Filed 6–25–13; 8:45 am]
BILLING CODE 6820–EP–P
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]]>Agencies
[Federal Register Volume 78, Number 123 (Wednesday, June 26, 2013)]
[Rules and Regulations]
[Pages 38537-38538]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-15213]
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Chapter 1
[Docket FAR 2013-0078, Sequence 4]
Federal Acquisition Regulation; Federal Acquisition Circular
2005-68; Small Entity Compliance Guide
AGENCY: Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Small Entity Compliance Guide.
-----------------------------------------------------------------------
SUMMARY: This document is issued under the joint authority of DOD, GSA,
and NASA. This Small Entity Compliance Guide has been prepared in
accordance with section 212 of the Small Business Regulatory
Enforcement Fairness Act of 1996. It consists of a summary of the rule
appearing in Federal Acquisition Circular (FAC) 2005-68, which amends
the Federal Acquisition Regulation (FAR). An asterisk (*) next to a
rule indicates that a regulatory flexibility analysis has been
prepared. Interested parties may obtain further information regarding
this rule by referring to FAC 2005-68, which precedes this document.
These documents are also available via the Internet at https://www.regulations.gov.
DATES: June 26, 2013.
FOR FURTHER INFORMATION CONTACT: For clarification of content, contact
the analyst whose name appears in the table below. Please cite FAC
2005-68 and the FAR case number. For information pertaining to status
or publication schedules, contact the Regulatory Secretariat at 202-
501-4755.
Rule Listed in FAC 2005-68
----------------------------------------------------------------------------------------------------------------
Subject FAR Case Analyst
----------------------------------------------------------------------------------------------------------------
*Expansion of Applicability of the Senior Executive Compensation 2012-017 Chambers.
Benchmark (Interim).
----------------------------------------------------------------------------------------------------------------
SUPPLEMENTARY INFORMATION: Summary for the FAR rule follow. For the
actual revisions and/or amendments made by this FAR case, refer to the
specific item number and subject set forth in the document following
this item summary. FAC 2005-68 amends the FAR as specified below:
Expansion of Applicability of the Senior Executive Compensation
Benchmark (FAR Case 2012-017) (Interim)
This interim rule amends the FAR to implement the statutorily-
expanded reach of the limitation on the allowability of compensation
costs for certain contractor personnel. This limitation on the
allowability of compensation costs is an amount set annually by the
Office of Federal Procurement Policy. Prior to the enactment of section
803 of the National Defense Authorization Act for Fiscal Year 2012
(Pub. L. 112-81), this limitation applied to a contractor's five most
highly compensated employees in management positions at each home
office and each segment of the contractor, with respect to all
contracts subject to the FAR cost principles with
[[Page 38538]]
all Federal agencies. In section 803, Congress expanded the application
of the limitation so that it applies to all contractor employees,
rather than just the top five executives in the case of contracts
covered by Title 10 of the United States Code. Moreover, Congress in
section 803(c)(2) stated that this expanded reach ``shall apply with
respect to costs of compensation incurred after January 1, 2012, under
contracts entered into before, on, or after the date of the enactment
of this Act'' (the date of enactment was December 31, 2011). Section
803(c)(1) also provided that this change shall be implemented in the
FAR.
This interim rule implements section 803 and provides that for DoD,
NASA, and Coast Guard contracts, the compensation limitation applies to
all contractor employees, rather than just the top five executives. For
contracts with agencies other than DoD, NASA, and the Coast Guard, the
reach of the limitation was not changed by section 803 and therefore
will continue to be a contractor's five most highly compensated
employees in management positions at each home office and each segment
of the contractor.
An analysis of data in the Federal Procurement Data System (FPDS)
revealed that most contracts awarded to small entities use simplified
acquisition procedures or are awarded on a competitive, fixed-price
basis, and do not require application of the cost principle contained
in this rule.
Section 803 is being implemented in the FAR through two
rulemakings. In accordance with section 803, this interim rule applies
to the compensation costs of all contractor employees incurred after
January 1, 2012, on all DoD, NASA, and Coast Guard contracts awarded on
or after December 31, 2011. Concurrently, DoD, GSA, and NASA are
issuing a proposed rule (FAR Case 2012-025) to solicit comments on the
application of the requirements of section 803 to DoD, NASA, and Coast
Guard contracts entered into before December 31, 2011.
Dated: June 10, 2013.
Laura Auletta,
Director, Office of Governmentwide Acquisition Policy, Office of
Acquisition Policy, Office of Governmentwide Policy.
[FR Doc. 2013-15213 Filed 6-25-13; 8:45 am]
BILLING CODE 6820-EP-P
