White House Reopens Debate over Contractor Pay

January 31, 2012

Unsatisfied with the contractor pay reforms in the fiscal 2012 Defense authorization act, the White House on Tuesday called on Congress to again take up a proposal that President Obama offered last fall to cap contractor pay that is reimbursable by the government at $200,000.

Lesley Field, acting administrator of the Office of Federal Procurement Policy, wrote in a blog post Tuesday that Congress should go beyond the "modest changes" made in December and "end the overpayment" of contractors.

"The president believes that asking the American people to pay a 250 percent-plus raise for contracting executives just doesn't make sense -- especially in the current fiscal environment," she wrote. "He proposed to end this excessive reimbursement by abolishing the outdated statutory formula and instead bringing the cap down to a level on par with what the government pays its own executives -- approximately $200,000." 

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