White House Makes Few Friends in Raising Contractor Pay Cap

White House Makes Few Friends in Raising Contractor Pay Cap

By Charles S. Clark 11:58 AM ET

bikeriderlondon/Shutterstock.com

In a memo quietly published in Wednesday’s Federal Register, the White House procurement chief instructed defense and civilian agency heads to raise the cap on taxpayer funds that can be used to reimburse contracting companies for the pay packages of top executives.

Beginning with contracts let in fiscal 2012, the maximum reimbursement level is $905,308, an increase of $190,000. The cap is based on a formula mandated by law, according to the memo from Joe Jordan, administrator of the Office of Federal Procurement Policy.

“Under current law, the administration has no flexibility to depart from the statutory requirement that the cap be adjusted annually based on the application of the statutorily-mandated formula,” Jordan’s memo said. “The administration has strongly reiterated the need for reforms to the current statutory framework and Congress has considered several proposals to reform the compensation cap. To date, however, Congress has not revised the cap amount or the formula for adjusting the cap,” other than enacting a small change in 2011 expanding the cap on pay on defense contracts to cover all employees, rather than the five highest-paid. Continue reading “White House Makes Few Friends in Raising Contractor Pay Cap”

House GOP Prepares Fallback Plan to Avoid January Shutdown

House GOP Prepares Fallback Plan to Avoid January Shutdown

As the budget conference committee continues to work toward an agreement that would set spending levels for the remainder of this fiscal year and fiscal 2015, House Republicans are contemplating a fallback plan: a short-term continuing resolution that would fund the government through April 15 and buy budget negotiators more time to strike a long-term deal.

According to multiple lawmakers familiar with the situation, budget negotiators in both parties are hopeful that the foundation for a long-term deal could be laid in December. But the details almost certainly won’t be solidified before Dec. 13, the deadline for the conference committee to report an agreement—and the day lawmakers leave town for the holiday recess.

At the same time, the current government-funding bill expires Jan. 15, and House members don’t return to Washington until Jan. 7.

Continue reading “House GOP Prepares Fallback Plan to Avoid January Shutdown”