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  • Question

    What are the compensation caps for calendar years 2013 and 2014 (prior to June 24, 2014)? What is the compensation cap for calendar year 2015?


    Answer

    The maximum amount federal contractors can claim reimbursement for employee salaries dropped from $952,000 to $487,000 annually under the interim rule published on June 24, 2014. The rule comes from the Bipartisan Budget Act of 2013, which called for the limit to be set within 180 days. The interim rule applies to all contracts awarded on or after June 24, 2014. Thus, the cap for 2013 and 2014 (up to June 24) was $952,000. The cap for calendar year 2015 is $487,000. Note: The rule allows for agency chiefs to create narrowly-targeted exemptions for scientists, engineers and other specialists where the cap might not be high enough to acquire needed skills.

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