[Federal Register Volume 79, Number 179 (Tuesday, September 16, 2014)]
[Notices]
[Page 55507]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-22005]



[[Page 55507]]

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OFFICE OF MANAGEMENT AND BUDGET

Department Of Defense


Report on Alternative Measures of Allowable Reimbursement for 
Compensation of Contractor Employees

AGENCY: Office of Federal Procurement Policy, Office of Management and 
Budget, and Department of Defense (DOD)

ACTION: Notice of request for public comment.

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SUMMARY: The Office of Federal Procurement Policy (OFPP), in the Office 
of Management and Budget (OMB), and the Department of Defense (DOD) 
seek public input for consideration in the development of a report to 
Congress on alternative measures of allowable reimbursement for the 
compensation of contractor employees. The report is required by section 
702(e) of the Bipartisan Budget Act of 2013 (Pub. L. 113-67; enacted 
Dec 26, 2013).

DATES: Interested parties should submit comments in writing to an 
address below on or before October 16, 2014.

ADDRESSES: All comments to this notice must be in writing, and may be 
submitted to any of the following methods:

Email: [email protected].
Facsimile: 202-395-5105.
Mail: Office of Federal Procurement Policy, ATTN: Raymond Wong, New 
Executive Office Building, Room 9013, 725 17th St. NW., Washington, DC 
20503.
    Instructions: Please submit comments only and cite ``Report on 
Benchmark Alternatives'' in all correspondence. Comments received will 
be posted without change to http://www.whitehouse.gov/omb/procurement/ccp_reports, including any personal information provided.

FOR FURTHER INFORMATION CONTACT: Raymond Wong, OFPP, 202-395-6805 or 
[email protected].

SUPPLEMENTARY INFORMATION: Section 702 of the Bipartisan Budget Act of 
2013 (Pub. L. 113-67; enacted Dec 26, 2013) establishes a cap of 
$487,000 per year on the amount the Federal Government will reimburse 
for contractor-paid employee compensation on contracts with defense and 
civilian agencies. By law, this amount must be adjusted annually to 
reflect the change in the Employment Cost Index for all workers, as 
calculated by the Bureau of Labor Statistics. Pursuant to section 
702(c), the new cap applies to costs of compensation incurred under 
contracts entered into on or after the date that is 180 days after the 
enactment of the Bipartisan Budget Act of FY 2013, (June 24, 2014). The 
Defense Acquisition Regulations Council and the Civilian Agency 
Acquisition Council published an interim rule via separate notice on 
June 24, 2014 to revise the Federal Acquisition Regulation to implement 
section 702 and seek public comment.
    Section 702(e) directs OMB and DOD to report to Congress on 
alternative benchmarks and industry standards for compensation, 
including whether any such benchmarks or standards would provide a more 
appropriate measure of allowable compensation for the purposes of 
section 2324(e)(1)(P) of title 10, United States Code, and section 
4304(a)(16) of title 41, United States Code.'' These statutory 
provisions set forth the caps on contractor employee compensation that 
may be reimbursed by the government.
    OMB's OFPP and DoD seek public input on alternative benchmarks that 
would provide a more appropriate measure of allowable compensation for 
the purposes of section 2324(e)(1)(P) of title 10, and section 
4304(a)(16) of title 41, United States Code, as amended by section 702, 
including appropriate inflators (i.e., alternatives in lieu of the 
Employment Cost Index for all workers, as calculated by the Bureau of 
Labor Statistics). Feedback will be considered in preparation of the 
report to Congress and should both describe the alternative(s) and 
explain why such might be more suitable than the benchmark and 
inflators set forth in statute.

Lesley A. Field,
Administrator (Acting), Office of Federal Procurement Policy.
Richard Ginman,
Director, Defense Procurement and Acquisition Policy.
[FR Doc. 2014-22005 Filed 9-15-14; 8:45 am]
BILLING CODE 3110-01-P