[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3512 Introduced in House (IH)]







104th CONGRESS
  2d Session
                                H. R. 3512

  To amend title 10, United States Code, to establish limitations on 
        taxpayer-financed compensation for defense contractors.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 22, 1996

 Mr. Sanders introduced the following bill; which was referred to the 
                     Committee on National Security

_______________________________________________________________________

                                 A BILL


 
  To amend title 10, United States Code, to establish limitations on 
        taxpayer-financed compensation for defense contractors.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. LIMITATION ON COMPENSATION PAID UNDER DEFENSE CONTRACTS.

    (a) Limitation.--Section 2324 of title 10, United States Code, is 
amended--
            (1) by redesignating subsection (l) as subsection (m); and
            (2) by inserting after subsection (k) the following new 
        subsection (l):
    ``(l) Limitation on Compensation.--
            ``(1) In general.--Subject to paragraph (2), the head of an 
        agency may not obligate funds to pay a contractor under a 
        contract with the agency for the costs of compensation with 
        respect to the services of any one individual to the extent 
        that the total amount of the compensation paid in a fiscal year 
        to that individual exceeds $200,000.
            ``(2) Aggregation rule.--For purposes of determining the 
        limitation on payment to a contractor under paragraph (1), all 
        contracts entered into by the contractor with the agencies 
        covered by this chapter and with all executive agencies (if 
        any) shall be treated as one contract, and the $200,000 
        limitation with respect to the services of an individual in a 
        fiscal year shall be allocated among the contracts in the 
        manner prescribed in regulation by the Administrator for 
        Federal Procurement Policy.
            ``(3) Definitions.--In this subsection:
                    ``(A) The term `compensation' includes salaries, 
                bonuses, deferred compensation, stock options and 
                payouts, certified indirect costs, restructuring costs, 
                and performance-based payments.
                    ``(B) The term `executive agency' has the meaning 
                provided by section 3 of the Federal Property and 
                Administrative Services Act of 1949 (41 U.S.C. 472).''.
    (b) Applicability.--Subsection (l) of section 2324 of title 10, 
United States Code, as added by subsection (a), applies to contracts 
entered into after the date of the enactment of this Act.
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