[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3513 Introduced in House (IH)]







104th CONGRESS
  2d Session
                                H. R. 3513

 To establish limitations on the ability of a Federal agency to pay a 
     contractor under a contract with the agency for the costs of 
      compensation with respect to the services of any individual.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 22, 1996

 Mr. Sanders introduced the following bill; which was referred to the 
 Committee on Government Reform and Oversight, and in addition to the 
    Committee on National Security, for a period to be subsequently 
   determined by the Speaker, in each case for consideration of such 
 provisions as fall within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
 To establish limitations on the ability of a Federal agency to pay a 
     contractor under a contract with the agency for the costs of 
      compensation with respect to the services of any individual.

    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 GOVERNMENT CONTRACTS.

    (a) Armed Services Acquisitions.--(1) Section 2324 of title 10, 
United States Code, is amended--
            (A) by redesignating subsection (l) as subsection (m); and
            (B) 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).''.
    (2) Subsection (l) of section 2324 of title 10, United States Code, 
as added by paragraph (1), applies to contracts entered into after the 
date of the enactment of this Act.
    (b) Civilian Agency Acquisitions.--(1) Section 306 of the Federal 
Property and Administrative Services Act of 1949 (41 U.S.C. 256) is 
amended--
            (A) by redesignating subsection (l) as subsection (m); and
            (B) 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 
        executive 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 all executive 
        agencies and with the Department of Defense, the Coast Guard, 
        and the National Aeronautics and Space Administration (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) Definition.--In this subsection, the term 
        `compensation' includes salaries, bonuses, deferred 
        compensation, stock options and payouts, certified indirect 
        costs, restructuring costs, and performance-based payments.''.
    (2) Subsection (l) of section 306 of the Federal Property and 
Administrative Services Act of 1949 (41 U.S.C. 256), as added by 
paragraph (1), applies to contracts entered into after the date of the 
enactment of this Act.
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