UPDATE 1-U.S. Congress poised to limit contractor pay: Is $487,000 a year enough?

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UPDATE 1-U.S. Congress poised to limit contractor pay: Is $487,000 a year enough?

By Andy Sullivan

Dec 12 (Reuters) - Congress is poised to nearly halve the salary cap for U.S. government contractors after years of dramatic increases driven by skyrocketing executive pay.

A broad budget bill that won approval by the House of Representatives on Thursday would lower the cap to $487,000 a person, down from its current level of $952,000. The Senate is expected to pass the bill next week.

The measure would be a partial victory for the White House, which for years has sought to rein in contractor reimbursements that fund salary and other personnel costs. In May, the White House proposed limiting the reimbursement level to $400,000 a person - the amount Barack Obama earns as president.

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The measure would apply to "cost-plus" contracts, which reimburse companies for work expenses plus a profit, but not to fixed-price contracts. Cost-plus contracts constitute about 40 percent of the $500 billion or so the government spends each year on goods and services.

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http://www.reuters.com/article/2013/12/13/usa-congress-pay-idUSL1N0JR2GX20131213

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1. Kick! n/t

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2. Depends on whether you want your web site to actually work.

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