Final Defense Bill Contains Key Contractor Provisions

December 15, 2011

The latest version of the $662 billion Defense authorization bill that Congress is set to vote on resolves two controversies affecting contractors that played out this year.

House and Senate negotiators have struck deals on reimbursement caps on contractor pay and on the issue of whether contractors should be required to disclose campaign gifts worth more than $5,000. President Obama on Wednesday withdrew a veto threat over unrelated provisions.

Final language on reimbursement of contractor salaries expands the existing $693,951 cap "to cover all contractor employees (instead of just the five most highly paid executives in each company, as provided in current law)," a Senate Armed Services Committee summary stated. The bill makes an exception for scientists and engineers "if necessary to ensure continued DoD access to needed skills and capabilities." 

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