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Fed Worker Unions Ask Congress to Cut Contractor Compensation Cap

Courtesy of GovExec

Federal employee unions and other groups sent a letter Tuesday to the leaders of the House and Senate Financial Services committees calling for a reduction in the compensation cap for non-Defense Department contractors, GovExec reports.

The letter recommends Congress cut the cap from $763,029 to $400,000, according to Kellie Lunney’s report.

Reducing compensation for U.S. government prime and subcontracts to federal contractor employees can be a step in resolving the country’s fiscal issues, according to the letter.

Signees include officials from the American Federation of Government Employees, National Treasury Employees Union, Economic Policy Institute, Project on Government Oversight and OMB Watch.

The Office of Management and Budget announced earlier this year it set the statutory cap for contractor pay at $763,029, a 10 percent rate increase based on formulas established in 1997.

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