A new rule would limit the amount contractors could charge the government for any of their employees’ salaries under cost-reimbursement contracts.
Currently contractors can charge back $487,000 for employee salaries, but the ceiling only applies to top senior executives. With the new Federal Acquisition Regulation rule, that limit would be expanded to all employees including scientists and engineers.
The final rule, issued May 30, would only affect the Defense Department, NASA and the Coast Guard, and applies retroactively to compensation costs on government contracts signed after Dec. 31, 2011.
Keep reading this article at: http://www.fiercegovernment.com/story/contractor-pay-cap-will-apply-all-employees-under-new-rule/2014-06-03