[Federal Register Volume 67, Number 87 (Monday, May 6, 2002)]
[Notices]
[Page 30464]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-11138]



[[Page 30463]]

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Part IV





Office of Management and Budget





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

  Federal Register / Vol. 67, No. 87 / Monday, May 6, 2002 / Notices  

[[Page 30464]]


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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 Management and Budget, Executive Office of the 
President.

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 2002--
$387,783. This determination is required to be made pursuant to Section 
808 of Public Law 105-85. It applies equally to both defense and 
civilian procurement agencies.

FOR FURTHER INFORMATION CONTACT: Richard C. Loeb, Acting Deputy 
Administrator, Office of Federal Procurement Policy, on (202) 395-3254.

Angela B. Styles,
Administrator.

To The Heads of Executive Departments and Agencies

Determination of Executive Compensation Benchmark Amount Pursuant to 
Section 808 of Public Law 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 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 2002 is $387,783. This benchmark compensation amount is to 
be used for contractor fiscal year 2002, and subsequent contractor 
fiscal years, unless and until revised by OMB. This benchmark 
compensation amount applies to contract costs incurred after January 1, 
2002, under covered contracts of both the defense and civilian 
procurement agencies as specified in Section 808 of Public Law 105-85.
    Questions concerning this memorandum may be addressed to Richard C. 
Loeb, Acting Deputy Administrator, Office of Federal Procurement 
Policy, on (202) 395-3254.

Angela B. Styles,
Administrator.
[FR Doc. 02-11138 Filed 5-3-02; 8:45 am]
BILLING CODE 3110-01-P