[Federal Register Volume 66, Number 86 (Thursday, May 3, 2001)]
[Notices]
[Pages 22266-22267]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-11060]


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OFFICE OF MANAGEMENT AND BUDGET


Office of Federal Procurement Policy; Determination of Executive 
Compensation Benchmark Amount Pursuant to Section 808 of Public Law 
105-85

AGENCY: Office of Federal Procurement Policy, OMB.

ACTION: Notice.

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SUMMARY: The Office of Management and Budget (OMB) is hereby publishing 
the attached memorandum to heads of agencies concerning the 
determination of the maximum ``benchmark'' compensation that will be 
allowable under government contracts during contractors' FY 2001--
$374,228. This determination is required to be made pursuant to section 
808 of Pub. L. 105-85. It applies equally to both defense and civilian 
procurement agencies.

FOR FURTHER INFORMATION CONTACT: Richard C. Loeb, Executive Secretary, 
Cost Accounting Standards Board, OFPP on (202) 395-3254.

Sean O'Keefe,
Deputy Director.

To The Heads of Executive Departments and Agencies

Subject: 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

[[Page 22267]]

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 2001 is $374,228. This benchmark 
compensation amount is to be used for contractor fiscal year 2001, 
and subsequent contractor fiscal years, unless and until revised by 
OMB. This benchmark compensation amount applies to contract costs 
incurred after January 1, 2001, 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.

Sean O'Keefe,
Deputy Director.
[FR Doc. 01-11060 Filed 5-2-01; 8:45 am]
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