Office of Federal Procurement Policy; Determination of Statutory Formula Benchmark Compensation Amount for Certain Executives and Contractor Employees, 13833-13834 [2016-05766]
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Federal Register / Vol. 81, No. 50 / Tuesday, March 15, 2016 / Notices
individual’s military discharge papers,
the appropriate branch of military
service, or the Department of Veterans’
Affairs. Without a claimant’s military
information, a SWA cannot adequately
determine the eligibility of exservicemembers and would not be
properly able to administer the program.
UCXA section 3 and Social Security Act
section 303(a)(6) authorize this
information collection. See 5 U.S.C.
8523; 42 U.S.C. 503(a)(6).
This information collection is subject
to the PRA. A Federal agency generally
cannot conduct or sponsor a collection
of information, and the public is
generally not required to respond to an
information collection, unless it is
approved by the OMB under the PRA
and displays a currently valid OMB
Control Number. In addition,
notwithstanding any other provisions of
law, no person shall generally be subject
to penalty for failing to comply with a
collection of information that does not
display a valid Control Number. See 5
CFR 1320.5(a) and 1320.6. The DOL
obtains OMB approval for this
information collection under Control
Number 1205–0176.
OMB authorization for an ICR cannot
be for more than three (3) years without
renewal, and the current approval for
this collection is scheduled to expire on
March 31, 2016. The DOL seeks to
extend PRA authorization for this
information collection for three (3) more
years, without any change to existing
requirements. The DOL notes that
existing information collection
requirements submitted to the OMB
receive a month-to-month extension
while they undergo review. For
additional substantive information
about this ICR, see the related notice
published in the Federal Register on
August 12, 2015 (80 FR 48339).
Interested parties are encouraged to
send comments to the OMB, Office of
Information and Regulatory Affairs at
the address shown in the ADDRESSES
section within thirty (30) days of
publication of this notice in the Federal
Register. In order to help ensure
appropriate consideration, comments
should mention OMB Control Number
1205–0176. The OMB is particularly
interested in comments that:
• Evaluate whether the proposed
collection of information is necessary
for the proper performance of the
functions of the agency, including
whether the information will have
practical utility;
• Evaluate the accuracy of the
agency’s estimate of the burden of the
proposed collection of information,
including the validity of the
methodology and assumptions used;
VerDate Sep<11>2014
17:40 Mar 14, 2016
Jkt 238001
• Enhance the quality, utility, and
clarity of the information to be
collected; and
• Minimize the burden of the
collection of information on those who
are to respond, including through the
use of appropriate automated,
electronic, mechanical, or other
technological collection techniques or
other forms of information technology,
e.g., permitting electronic submission of
responses.
Agency: DOL–ETA.
Title of Collection: Unemployment
Compensation for Ex-Servicemembers
Handbook.
OMB Control Number: 1205–0176.
Affected Public: Individuals or
Households; State, Local, and Tribal
Governments.
Total Estimated Number of
Respondents: 102,735.
Total Estimated Number of
Responses: 107,816.
Total Estimated Annual Time Burden:
2,139 hours.
Total Estimated Annual Other Costs
Burden: $0.
Dated: March 9, 2016.
Michel Smyth,
Departmental Clearance Officer.
[FR Doc. 2016–05809 Filed 3–14–16; 8:45 am]
BILLING CODE 4510–FW–P
OFFICE OF MANAGEMENT AND
BUDGET
Office of Federal Procurement Policy;
Determination of Statutory Formula
Benchmark Compensation Amount for
Certain Executives and Contractor
Employees
Office of Federal Procurement
Policy, Office of Management and
Budget.
ACTION: Notice.
AGENCY:
The Office of Management
and Budget is publishing the attached
memorandum to the Heads of Executive
Departments and Agencies announcing
that the ‘‘benchmark compensation
amount’’ for certain executives and
contractor employees in terms of costs
allowable under Federal Government
covered contracts during the
contractor’s fiscal years 2013 and 2014
is $980,796 and $1,144,888,
respectively. These statutory formula
cap determinations are required under
Section 39 of the Office of Federal
Procurement Policy Act, as amended (41
U.S.C. 1127). These benchmark
compensation amounts apply to both
defense and civilian agencies for their
respective applicable periods, but only
SUMMARY:
PO 00000
Frm 00063
Fmt 4703
Sfmt 4703
13833
for contracts awarded before June 24,
2014.
FOR FURTHER INFORMATION CONTACT:
Raymond Wong, Office of Federal
Procurement Policy, at 202–395–6805.
Anne E. Rung,
Administrator, Office of Federal Procurement
Policy.
MEMORANDUM FOR THE HEADS OF
EXECUTIVE DEPARTMENTS AND
AGENCIES
FROM: Anne E. Rung, Administrator,
Office of Federal Procurement Policy.
SUBJECT: Determination of the
Statutory Formula Benchmark
Compensation Amount for Fiscal
Years 2013 and 2014 for Certain
Executives and Contractor Employees,
Pursuant to Section 39 of the Office of
Federal Procurement Policy Act, as
amended (41 U.S.C. 1127)
This memorandum sets forth the
benchmark compensation amount for
certain employees of Federal
Government contractors as required by
Section 39 of the Office of Federal
Procurement Policy (OFPP) Act, as
amended (41 U.S.C. 1127, otherwise
known as the statutory formula cap) for
the cost allowability purposes of section
4304(a)(16) of title 41 and section
2324(e)(1)(P) of title 10 for covered
contracts awarded before June 24, 2014.
For covered contracts awarded on or
after June 24, 2014, a new cap applies
pursuant to section 702 of the Bipartisan
Budget Act of 2013 (BBA), Pub. L. 113–
67, December 26, 2013.
For contracts awarded prior to June
24, 2014, section 1127 limits the
reimbursement or allowability of
compensation costs under Federal
Government contracts as implemented
at Federal Acquisition Regulation (FAR)
31.205–6(p). In less technical terms, the
statutory formula cap places a ceiling on
the total annual compensation costs the
Federal Government will reimburse a
contractor for the compensation package
the contractor provides to certain of its
employees for work done pursuant to
certain Federal Government covered
contracts. This statutory formula cap
applies to limit the reimbursement of
the compensation costs of certain
contractor senior executives on covered
contracts with civilian and defense
agencies. Additionally, as a result of
changes made by section 803 of the
National Defense Authorization Act for
FY 2012, Public Law 112–81, December
31, 2011, for covered contracts with
defense agencies (i.e., DOD, NASA and
Coast Guard), the statutory formula cap
was expanded to cover all other
contractor employees and applies to the
compensation costs incurred after
E:\FR\FM\15MRN1.SGM
15MRN1
asabaliauskas on DSK3SPTVN1PROD with NOTICES
13834
Federal Register / Vol. 81, No. 50 / Tuesday, March 15, 2016 / Notices
December 31, 2011. With both civilian
and defense agencies, the statutory
formula cap applies only when the
contractor is performing covered
contracts that are of either a costreimbursable nature or other cost-based
nature.
Section 1127 sets out a formula for
determining the cap amount.
Specifically, the statutory formula cap
amount is set at the median (50th
percentile) amount of compensation
provided, over the most recent year for
which data is available, to the five most
highly compensated employees in
management positions at each home
office and each segment of all publiclyowned U.S. companies with annual
sales over $50 million. The
determination is based on analysis of
data made available by the Securities
and Exchange Commission.
Compensation means the total amount
of wages, salaries, bonuses, restricted
stock, deferred and performance
incentive compensation, and other
compensation for the year, whether
paid, earned, or otherwise accruing, as
recorded in the employer’s cost
accounting records for the year.
Since enactment of the statutory
formula in 1998, the cap has increased
more than 300%. In 2010, the President
began calling on Congress to replace the
current statutory formula cap with a
lower, more sensible limit that is on par
with what the Government pays its own
executives and employees. In December
2013, with the Administration’s strong
support, Congress reformed the ceiling
on the reimbursement of contractor
employee compensation. Section 702 of
the BBA replaced section 1127 with a
new cap of $487,000 to be adjusted
annually to reflect the change in the
Employment Cost Index for all workers
as calculated by the Bureau of Labor
Statistics (otherwise known as the BBA
cap). The new $487,000 BBA cap
provides a reasonable level of
compensation for high value Federal
contractor employees while ensuring
taxpayers are not saddled with paying
excessive compensation costs. On June
24, 2014, the Federal Acquisition
Regulatory Council issued an interim
rule to amend the Federal Acquisition
Regulation to reflect the new BBA cap
and issuance of a final rule is pending.
However, the new $487,000 BBA cap
applies on a prospective basis only to
contracts awarded on or after June 24,
2014. Because the statutory formula cap
continues to apply to contracts awarded
before June 24, 2014, the Administration
is compelled by statute to determine the
statutory formula cap amount for FYs
2013 and 2014 in accordance with the
statutory formula set forth in section
VerDate Sep<11>2014
17:40 Mar 14, 2016
Jkt 238001
1127 to address these pre-existing
contracts.
After consultation with the Director of
the Defense Contract Audit Agency,
OFPP has determined, pursuant to the
requirements of section 1127, that the
statutory formula cap amount for the
ceiling on the compensation of a
contractor employee covered by this
provision is $980,796 for FY 2013, and
$1,144,888 for FY 2014. Each of these
statutory formula cap amounts applies
to limit the reimbursement, by the
Government to the contractor, of the
costs of compensation for certain
contractor employees for costs incurred
on all covered contracts, at the
beginning of the contractor FY that
begins January 1 for the respective year
(or pro-rated over that portion of the
contractor FY that includes January 1
for the respective year). The statutory
formula cap amount (i.e., $980,796) for
FY 2013 is applicable to compensation
costs incurred on all covered contracts
during the period of January 1, 2013
through December 31, 2013 for the
contractor’s fiscal year. The statutory
formula cap amount (i.e., $1,144,888)
for FY 2014 is applicable on all covered
contracts to compensation costs
incurred as of January 1, 2014 and
continues in subsequent contractor FYs,
unless and until revised by OFPP. As
explained above, this statutory formula
cap applies only to covered contracts
awarded before June 24, 2014 for both
defense and civilian procurement
agencies to limit the reimbursement of
the compensation costs for certain
contractor employees.
Employers continue to have the
discretion to compensate their
employees at any level they deem
appropriate. The statutory formula cap
only limits how much the Government
will reimburse the contractors for the
services of those affected employees.
Questions concerning this
memorandum may be addressed to
Raymond Wong, OFPP, at 202–395–
6805.
[FR Doc. 2016–05766 Filed 3–14–16; 8:45 am]
BILLING CODE P
NATIONAL FOUNDATION ON THE
ARTS AND THE HUMANITIES
Meetings of Humanities Panel
National Endowment for the
Humanities.
ACTION: Notice of meetings.
AGENCY:
The National Endowment for
the Humanities will hold twenty-three
meetings of the Humanities Panel, a
federal advisory committee, during
SUMMARY:
PO 00000
Frm 00064
Fmt 4703
Sfmt 4703
April, 2016. The purpose of the
meetings is for panel review, discussion,
evaluation, and recommendation of
applications for financial assistance
under the National Foundation on the
Arts and Humanities Act of 1965.
DATES: See SUPPLEMENTARY INFORMATION
section for meeting dates.
ADDRESSES: The meetings will be held at
Constitution Center at 400 7th Street
SW., Washington, DC 20506. See
SUPPLEMENTARY INFORMATION for meeting
room numbers.
FOR FURTHER INFORMATION CONTACT:
Elizabeth Voyatzis, Committee
Management Officer, 400 7th Street
SW., Room 4060, Washington, DC
20506; (202) 606–8322; evoyatzis@
neh.gov.
Pursuant
to section 10(a)(2) of the Federal
Advisory Committee Act (5 U.S.C.
App.), notice is hereby given of the
following meetings:
1. DATE: April 1, 2016.
TIME: 8:30 a.m. to 5:00 p.m.
ROOM: Virtual Panel.
This meeting will discuss
applications for Next Generation Ph.D.:
Planning Grants, submitted to the Office
of Challenge Grants.
2. DATE: April 4, 2016.
TIME: 8:30 a.m. to 5:00 p.m.
ROOM: Virtual Panel.
This meeting will discuss
applications for Next Generation Ph.D.:
Planning Grants, submitted to the Office
of Challenge Grants.
3. DATE: April 5, 2016.
TIME: 8:30 a.m. to 5:00 p.m.
ROOM: 4002.
This meeting will discuss
applications on the subjects of World
Art and Culture, for Museums, Libraries
and Cultural Organizations: Planning
Grants, submitted to the Division of
Public Programs.
4. DATE: April 6, 2016.
TIME: 8:30 a.m. to 5:00 p.m.
ROOM: Via Conference Call.
This meeting will discuss
applications on the subjects of U.S.
History and Culture, for Museums,
Libraries and Cultural Organizations:
Planning Grants, submitted to the
Division of Public Programs
5. DATE: April 6, 2016.
TIME: 8:30 a.m. to 5:00 p.m.
ROOM: Virtual Panel.
This meeting will discuss
applications for Next Generation Ph.D.:
Planning Grants, submitted to the Office
of Challenge Grants.
6. DATE: April 7, 2016.
TIME: 8:30 a.m. to 5:00 p.m.
ROOM: 4002.
This meeting will discuss
applications on the subjects of History
SUPPLEMENTARY INFORMATION:
E:\FR\FM\15MRN1.SGM
15MRN1
]]>Agencies
[Federal Register Volume 81, Number 50 (Tuesday, March 15, 2016)]
[Notices]
[Pages 13833-13834]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-05766]
=======================================================================
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OFFICE OF MANAGEMENT AND BUDGET
Office of Federal Procurement Policy; Determination of Statutory
Formula Benchmark Compensation Amount for Certain Executives and
Contractor Employees
AGENCY: Office of Federal Procurement Policy, Office of Management and
Budget.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: The Office of Management and Budget is publishing the attached
memorandum to the Heads of Executive Departments and Agencies
announcing that the ``benchmark compensation amount'' for certain
executives and contractor employees in terms of costs allowable under
Federal Government covered contracts during the contractor's fiscal
years 2013 and 2014 is $980,796 and $1,144,888, respectively. These
statutory formula cap determinations are required under Section 39 of
the Office of Federal Procurement Policy Act, as amended (41 U.S.C.
1127). These benchmark compensation amounts apply to both defense and
civilian agencies for their respective applicable periods, but only for
contracts awarded before June 24, 2014.
FOR FURTHER INFORMATION CONTACT: Raymond Wong, Office of Federal
Procurement Policy, at 202-395-6805.
Anne E. Rung,
Administrator, Office of Federal Procurement Policy.
MEMORANDUM FOR THE HEADS OF EXECUTIVE DEPARTMENTS AND AGENCIES
FROM: Anne E. Rung, Administrator, Office of Federal Procurement
Policy.
SUBJECT: Determination of the Statutory Formula Benchmark Compensation
Amount for Fiscal Years 2013 and 2014 for Certain Executives and
Contractor Employees, Pursuant to Section 39 of the Office of Federal
Procurement Policy Act, as amended (41 U.S.C. 1127)
This memorandum sets forth the benchmark compensation amount for
certain employees of Federal Government contractors as required by
Section 39 of the Office of Federal Procurement Policy (OFPP) Act, as
amended (41 U.S.C. 1127, otherwise known as the statutory formula cap)
for the cost allowability purposes of section 4304(a)(16) of title 41
and section 2324(e)(1)(P) of title 10 for covered contracts awarded
before June 24, 2014. For covered contracts awarded on or after June
24, 2014, a new cap applies pursuant to section 702 of the Bipartisan
Budget Act of 2013 (BBA), Pub. L. 113-67, December 26, 2013.
For contracts awarded prior to June 24, 2014, section 1127 limits
the reimbursement or allowability of compensation costs under Federal
Government contracts as implemented at Federal Acquisition Regulation
(FAR) 31.205-6(p). In less technical terms, the statutory formula cap
places a ceiling on the total annual compensation costs the Federal
Government will reimburse a contractor for the compensation package the
contractor provides to certain of its employees for work done pursuant
to certain Federal Government covered contracts. This statutory formula
cap applies to limit the reimbursement of the compensation costs of
certain contractor senior executives on covered contracts with civilian
and defense agencies. Additionally, as a result of changes made by
section 803 of the National Defense Authorization Act for FY 2012,
Public Law 112-81, December 31, 2011, for covered contracts with
defense agencies (i.e., DOD, NASA and Coast Guard), the statutory
formula cap was expanded to cover all other contractor employees and
applies to the compensation costs incurred after
[[Page 13834]]
December 31, 2011. With both civilian and defense agencies, the
statutory formula cap applies only when the contractor is performing
covered contracts that are of either a cost-reimbursable nature or
other cost-based nature.
Section 1127 sets out a formula for determining the cap amount.
Specifically, the statutory formula cap amount is set at the median
(50th percentile) amount of compensation provided, over the most recent
year for which data is available, to the five most highly compensated
employees in management positions at each home office and each segment
of all publicly-owned U.S. companies with annual sales over $50
million. The determination is based on analysis of data made available
by the Securities and Exchange Commission. Compensation means the total
amount of wages, salaries, bonuses, restricted stock, deferred and
performance incentive compensation, and other compensation for the
year, whether paid, earned, or otherwise accruing, as recorded in the
employer's cost accounting records for the year.
Since enactment of the statutory formula in 1998, the cap has
increased more than 300%. In 2010, the President began calling on
Congress to replace the current statutory formula cap with a lower,
more sensible limit that is on par with what the Government pays its
own executives and employees. In December 2013, with the
Administration's strong support, Congress reformed the ceiling on the
reimbursement of contractor employee compensation. Section 702 of the
BBA replaced section 1127 with a new cap of $487,000 to be adjusted
annually to reflect the change in the Employment Cost Index for all
workers as calculated by the Bureau of Labor Statistics (otherwise
known as the BBA cap). The new $487,000 BBA cap provides a reasonable
level of compensation for high value Federal contractor employees while
ensuring taxpayers are not saddled with paying excessive compensation
costs. On June 24, 2014, the Federal Acquisition Regulatory Council
issued an interim rule to amend the Federal Acquisition Regulation to
reflect the new BBA cap and issuance of a final rule is pending.
However, the new $487,000 BBA cap applies on a prospective basis only
to contracts awarded on or after June 24, 2014. Because the statutory
formula cap continues to apply to contracts awarded before June 24,
2014, the Administration is compelled by statute to determine the
statutory formula cap amount for FYs 2013 and 2014 in accordance with
the statutory formula set forth in section 1127 to address these pre-
existing contracts.
After consultation with the Director of the Defense Contract Audit
Agency, OFPP has determined, pursuant to the requirements of section
1127, that the statutory formula cap amount for the ceiling on the
compensation of a contractor employee covered by this provision is
$980,796 for FY 2013, and $1,144,888 for FY 2014. Each of these
statutory formula cap amounts applies to limit the reimbursement, by
the Government to the contractor, of the costs of compensation for
certain contractor employees for costs incurred on all covered
contracts, at the beginning of the contractor FY that begins January 1
for the respective year (or pro-rated over that portion of the
contractor FY that includes January 1 for the respective year). The
statutory formula cap amount (i.e., $980,796) for FY 2013 is applicable
to compensation costs incurred on all covered contracts during the
period of January 1, 2013 through December 31, 2013 for the
contractor's fiscal year. The statutory formula cap amount (i.e.,
$1,144,888) for FY 2014 is applicable on all covered contracts to
compensation costs incurred as of January 1, 2014 and continues in
subsequent contractor FYs, unless and until revised by OFPP. As
explained above, this statutory formula cap applies only to covered
contracts awarded before June 24, 2014 for both defense and civilian
procurement agencies to limit the reimbursement of the compensation
costs for certain contractor employees.
Employers continue to have the discretion to compensate their
employees at any level they deem appropriate. The statutory formula cap
only limits how much the Government will reimburse the contractors for
the services of those affected employees.
Questions concerning this memorandum may be addressed to Raymond
Wong, OFPP, at 202-395-6805.
[FR Doc. 2016-05766 Filed 3-14-16; 8:45 am]
BILLING CODE P
