The Federal Acquisition Regulatory Council has extended a cap on contractor executive compensation rates to nearly all contractor employees working under contracts for the Defense Department and NASA, Federal Times reported Tuesday.Andy Medici writes the current pay cap is $487,000 for new contracts and was set under the 2013 Bipartisan Budget Act.
Contractors will pay for employee costs incurred over the last 18 months under retroactive language of the new ruling, according to the report.
The FAR council plans to implement the cap across all government contracts under a planned interim rule, the report says.
