Obama to Seek Much Lower Cap on Contractor Exec Pay

May 30, 2013

Federal contractors would see sizable cuts in government reimbursements for employee salaries under draft legislation the White House plans to send Congress next week.

In a bid to “stop excessive payments to contractors,” the plan would expand across the government a small provision in last December’s National Defense Authorization Act and cap the reimbursement rate at the president’s salary (currently $400,000), according to Joe Jordan, administrator of the Office of Federal Procurement Policy, who made the announcement Thursday in a blog and spoke to reporters on a conference call.

“The proposal builds on previous administration proposals and language included in the president’s budget, and marks another important step in our ongoing effort to buy smarter and end wasteful, fiscally imprudent contract spending,” Jordan said.

The move would expand the cap’s coverage from just the top five highest-paid contractor employees to all employees, a change long sought by employee unions and some lawmakers.

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