[Federal Register Volume 69, Number 94 (Friday, May 14, 2004)]
[Notices]
[Page 26897]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-10925]


=======================================================================
-----------------------------------------------------------------------

OFFICE OF MANAGEMENT AND BUDGET

Office of Federal Procurement Policy


Determination of Executive Compensation Benchmark Amount Pursuant 
to Section 808 of Pub. L. 105-85

AGENCY: Office of Federal Procurement Policy, OMB.

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: The Office of Management and Budget (OMB) is hereby publishing 
the attached memorandum to the heads of executive departments and 
agencies concerning the determination of the maximum ``benchmark'' 
compensation amount that will be allowable under government contracts 
during contractors' FY 2004--$432,851. 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: Rein Abel, Office of Federal 
Procurement Policy, on (202) 395-3254.

Joshua B. Bolten,
Director.

Memorandum for 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 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, we have determined pursuant to the 
requirements of Section 39 that the benchmark compensation amount 
for contractor Fiscal Year 2004 is $432,851. This benchmark 
compensation amount is to be used for contractor Fiscal Year 2004, 
and subsequent contractor fiscal years, unless and until revised by 
OMB. This benchmark compensation amount applies to contract costs 
incurred after January 1, 2004, 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 Rein 
Abel, Office of Federal Procurement Policy, on (202) 395-3254.

Joshua B. Bolten,
Director.
[FR Doc. 04-10925 Filed 5-13-04; 8:45 am]
BILLING CODE 3110-01-P