To implement common sense controls on the taxpayer-funded salaries of defense contractors.

1. Rewrites section 842 of division A

   Replaces

   In S. 1867 · Placed on Calendar Senate

   Struck: SEC. 842. EXTENSION TO ALL MANAGEMENT EMPLOYEES OF APPLICABILITY OF THE SENIOR EXECUTIVE BENCHMARK COMPENSATION AMOUNT FOR PURPOSES OF ALLOWABLE COST LIMITATIONS UNDER GOVERNMENT CONTRACTS.

   Struck: (a) Covered Executives.--

   Inserted: SEC. 842. LIMITATION ON DEFENSE CONTRACTOR COMPENSATION.

   [struck: (1) Costs not allowable.--Subsection ][inserted: Section 2324](e)(1)(P) of [struck: section 2324 of ]title 10, United States Code, is amended [struck: by striking "senior executives" and inserting "executives".][inserted: to read as follows:]

   Struck: (2) Covered executives.--Subsection (l)(5) of such section is amended--

   Struck: (A) by striking "The term 'senior executives"' and inserting "The term 'executives"'; and

   Struck: (B) by striking "the five most highly compensated employees" and inserting "all employees serving".

   Struck: (b) Effective Date.--The amendments made by this section--

   Show 2 more struck paragraphsShow less

   Struck: (1) shall be implemented in the Federal Acquisition Regulation not later than 180 days after the date of the enactment of this Act; and

   Struck: (2) shall apply with respect to costs of compensation incurred on or after January 1, 2012, under contracts covered by section 2324 of title 10, United States Code, that are entered into before, on, or after the date of the enactment of this Act.

   Inserted: "(P) Costs of compensation of contractor and subcontractor employees for a fiscal year, regardless of the contract funding source, to the extent that such compensation exceeds the annual amount paid to the President of the United States in accordance with section 102 of title 3.".

   Original wording

   Strike section 842 of division A and insert the following:

Read automatically from the Congressional Record. Check the original before relying on it.

As printed